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Madrid, 7 th February 2011

Study on Cross Border Transmission tariffs in the MIBGAS (CNE/ERSE) Current Status. Madrid, 7 th February 2011. CBT tariff study on S-GRI work plan . On the topic of Regulatory Harmonization :

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Madrid, 7 th February 2011

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  1. Study on Cross Border Transmission tariffs in the MIBGAS (CNE/ERSE) Current Status Madrid, 7th February 2011

  2. CBT tariff study on S-GRI work plan On the topic of Regulatory Harmonization: • CNE and ERSE issued a proposal to the Governments on common license recognition for suppliers between countries (Jan2010) • CNE and ERSE will focus on the harmonization of transmission tariff structures, initially at cross border points • Initial works will compare current access tariffs for cross border gas flows to identify main obstacles to market development • A proposal will be produced to define the rules to apply to cross border tariffs between Portugal and Spain, after a public consultation procedure.

  3. Motivations Reducing gas trading barriers in the MIBGAS can contribute to: • Increase market liquidity and competition level in gas wholesale and retail markets • Increase competition among electricity generators in the MIBEL • Improve security of supply in the Iberian Peninsula • Enable MIBGAS to be a gas source for Central Europe, thus reducing average cost of infrastructure use for Iberian consumers and promoting efficiency in matching the demand and supply of gas

  4. Ongoing investigations The study will arrive to conclusions on: • Average import premium, associated with cross border transmission tariffs in the MIBGAS • Link between cross border tariff payments and costs caused by gas flows • Impact of cross border transmission tariff on retail prices of suppliers and therefore the impact on supplier competitiveness

  5. Next steps CNE and ERSE will proceed with regulatory harmonization in the MIBGAS by: • Finalizing the study on cross border transmission tariff • Having a joint public consultation on a proposal of regulatory harmonization of cross border transmission tariffs • Carrying out the necessary steps to promote the implementation of the conclusions from the public consultation

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