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ERGEG comment to KEMA study on Art. 3 and 7

Walter Boltz, Chairman ERGEG Gas Working Group 17 th Madrid Forum 14 January 2010. ERGEG comment to KEMA study on Art. 3 and 7. General remarks. ERGEG welcomes the KEMA study on methodologies for gas transmission network tariffs and gas balancing fees in Europe

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ERGEG comment to KEMA study on Art. 3 and 7

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  1. Walter Boltz, Chairman ERGEG Gas Working Group 17th Madrid Forum 14 January 2010 ERGEG comment to KEMA study on Art. 3 and 7

  2. General remarks • ERGEG welcomes the KEMA study on methodologies for gas transmission network tariffs and gas balancing fees in Europe • We share most of the analysis of the existing systems and the barriers identified • We would like to point out that a high level of aggregation might have lead to a certain level of inaccuracy • ERGEG has already developed recommendations for some of the barriers identified

  3. Barriers resulting from differences in network access • Barriers resulting from differences in network access and incompatible products have been addressed in ERGEG’s work on CAM & CMP • Auctions as standard allocation mechanism • Cross-border capacity products • Provisions on short-term and long-term UIOLI • Network access model according to Regulation (EC) 715/2009: decoupled entry-exit systems

  4. Barriers resulting from differences in tariff structures • Barriers to short-term trading resulting from high premium on short term capacity products has been addressed in ERGEG’s recommendations on CMP guidelines: • Charges for firm capacities with contract periods of more than one day shall not be higher than the added daily charges during the contract period • Issues to be addressed in the framework guideline on harmonized transmission tariff structures • Pancaking of tariffs • Premium on backhaul capacities • Lack / Determination of locational charges (efficient signals for investment)

  5. Barriers resulting from differences in regulation • Barriers resulting from the lack of coordination in network planning to be mitigated by 10-year network development plans with a top-down view on the EU and regional gas grid • Barriers resulting from regulatory treatment of new cross-border infrastructure • In its Principles on Calculating Tariffs for Access to Gas Transmission Networks (E07-CBT-01-03) ERGEG has identified the following measures available to NRAs to foster investments in new cross-border infrastructure: • A higher rate of return for a specified period of time • A shorter depreciation schedule • Long-term commitments to a certain tariff methodology • ACER will facilitate the coordination between NRAs on a case by case basis for each new cross-border infrastructure project (considering the specific national regulatory framework)

  6. ERGEG Work Programme 2010 • The barriers identified by KEMA will serve as input for ERGEG’s further work • In 2010, ERGEG will work on • Framework guidelines on balancing • Framework guidelines on harmonized transmission tariffs

  7. Thank You!

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