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European Transparency Requirements - update

European Transparency Requirements - update. Transmission Workstream 1 st May 2008. European Transparency Drivers. Transparency seen as key to liberalization of European gas market Drivers: Compliance with existing EC Regulation 1775/2005

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European Transparency Requirements - update

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  1. European Transparency Requirements - update Transmission Workstream 1st May 2008

  2. European Transparency Drivers • Transparency seen as key to liberalization of European gas market • Drivers: • Compliance with existing EC Regulation 1775/2005 • 3rd Package of amendments to current Regulation/Directives on gas market liberalization • Gas Regional Initiative (GRI) • GRI NW Roadmap

  3. Gas Regional Initiative • European Regulator’s Group for Electricity and Gas (ERGEG), of which Ofgem is member, established Gas Regional Initiative in April 2006 • Promote further liberalisation of national markets • Develop regional solutions as stepping stone to European gas market • UK within GRI NW • Transparency identified as one of the priority areas for GRI NW • Participation in GRI is voluntary, but TSOs are expected to deliver agreed outputs

  4. GRI NW Transparency Project • GRI NW Transparency project • Aim: improve publication of capacity and flow data • Demonstrate commitment to respond to market requirements • Established TSO information release principles • e.g. release will not prejudice any TSO customer, TSO or any other stakeholder • Operators response to EFET “wish list”/Ofgem transparency questionnaire • Agreed information provision extends beyond requirements of EC Regulation 1775/2005

  5. UK Points Relevant for GRI NW • Focus on connections with other TSOs and importation points for “non-indigenous gas” • Identified points for UK: • Entry Points: • Bacton (IUK & BBL) • Easington (Langeled) • Isle of Grain • Milford Haven (Dragon & South Hook) • Exit Points: • Bacton (IUK) • Moffat

  6. UK Way Forward • UK regime largely compliant and frequently exceeds requirements • Only 2 gaps identified concerning exit capacity and day ahead nominations • Addressing these “gaps” requires • provision of day ahead nominations at “interconnectors” and LNG terminals • publication of “technical, contracted and available” exit capacity at interconnectors

  7. UK Way Forward • Raise Mod for Publication of Day Ahead Nominations • Publish aggregate nomination per point at 18:00 D-1 • Question: Should we limit publication to GRI NW list or extend to all points to avoid possible discrimination issues? • Option 1: publish data for GRI NW listed points only • Option 2: publish data at all “relevant points” (c.f. EC Regulation 1775/2005) – requirement in draft 3rd package N.B. Publication of nomination data is voluntary at present

  8. UK Way Forward • Exit Capacity - (technical, contracted and available) • Question: Do we push ahead with GRI NW requirement in light of ongoing Exit Reform? • Option 1: await Ofgem decision re Exit Reform due November 2008 • Current route for Regulation compliance, but have used this argument since Regulation came into force • Option 2: proceed and publish “technical, contracted and available” exit capacity at the two GRI NW listed points • Potentially misleading as large proportion of exit capacity not booked but allocated after the day to interruptible meters • Option 3: publish current exit capacity data at all Relevant Exit Points (EC Regulation 1775/2005) • Baselines already published (thus partial compliance with current Regulation)

  9. Relevant Point Consultation Requirement • No matter what options decided, there is still a need consult on relevant points • EC Regulation 1775/2005, Article 6.4: • “The relevant points of a transmission system on which information must be public shall be approved by the competent authorities after consultation with network users.”

  10. Relevant Point Consultation Requirement • EC Regulation 1775/2005, Annex 3.2 - Definition of all relevant points for transparency requirements • All entry points • Most important exit points & zones • Covering at least 50% of total exit capacity in aggregate • Points & zones individually covering more than 2% of total exit capacity of network • Interconnections to other TSOs • Points connecting to LNG terminals • Essential points (e.g. likely to experience physical congestion) • Points of connection to infrastructure providing ancillary services

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