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Introduction

Introduction. CAM selected for the pilot project at the 16th Madrid Forum Letter from the Commission received on 22 September 2009 Consultation on the draft framework guideline launched on 18 December 2009 Final version adopted on 10 June 2010

raphael-bernard
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Introduction

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  1. Introduction CAM selected for the pilot project at the 16th Madrid Forum Letter from the Commission received on 22 September 2009 Consultation on the draft framework guideline launched on 18 December 2009 Final version adopted on 10 June 2010 CAM context: need to improve the access to cross border points Different allocation rules on the two sides of borders Different types of capacity products Domination of First Come First Served  More integration to the benefit of competition and security of supply Letter from the Commission requesting improvements sent on 9 September 2010 Final version of the pilot framework guideline released on 10 December 2010

  2. Requests from the Commission The Commission asked for a revision of the Framework Guideline according to Article 6(4) of Regulation 715/2009 “The draft FG does not in all aspects contribute to non discrimination, effective competition and the efficient functioning of the market” Three months as from September 9 Requests More harmonisation: market based mechanisms only Clarification of technical points and contractual issues Reduce the role of regulators Issues to be further elaborated “Technical” parameters reg. bundling of capacities (timing, loss of capacities, relation to existing contracts) Auction design (reserve price, existing capacities) Rules for firm vs interruptible capacities Harmonisation of gas day

  3. Amendments: Role of NRAs and bundling 1. Highest possible degree of harmonisation and minimisation of the role of NRAs The pilot FG was amended in that direction NRAs will still have room for decision since the NC cannot cover all potential operational arrangements (Gas Regulation, Article 13(1)) 2. Bundled products Clarification of ”virtual interconnection points”: capacity at two or more points connecting two adjacent entry-exit systems is integrated into one single capacity service Virtual interconnection points should not lead to a reduction of capacity Implementation within 5 years but Sunset clause: how to organize the bundling of capacity within existing contracts by 5 years after the entry into force of the code: definition of a “default” rule

  4. 3. “Sunset clause” Mandatory bundling of all the technical capacity within five years for shippers Priority to voluntary agreements Default rule: if no agreement, TSOs are entitled to split the bundled capacity between original capacity holders proportionally to their capacity rights Should not entitle contracting parties to cancel supply contracts  A specific impact assessment is going to be launched on the sunset clause and the default rule Amendments: Bundling and sunset clause

  5. 4. Auctions as the standard allocation mechanism Definition of a standard design with possible exemptions Anonymous and online based auction procedures 5. Reserve price: decided by the FG on tariffs but reference to “regulated price” Potential over revenues from auctions shall be affected to reducing tariffs, reduce congestions or to incentivise TSOs to maximise capacity offer  Interim period: alternative allocation procedures and duration to be decided by comitology Amendments: Auctions and reserve price

  6. Amendments: new capacity, interruptible, gas day • 6. Allocation of capacity yet to be built: auctions not sufficient • Incremental capacity excluded from the scope of the pilot FG • However processes for allocating incremental capacities should be consistent with this pilot FG • 7. Clarification of the rules that apply for firm and for interruptible capacity • Priority to firm capacity: interruptible shall not restrict the use of firm capacity • Auctions are the single target model for both • Procedures regarding interruptions will be standardized • 8. Clarification of the need for a common gas day • Standard duration for the gas day starting at 6 CET • Further evaluation by ENTSOG left open

  7. Way forward • ACER consultation (completed) • Evaluation of comments (ongoing) • Launch of an impact assessment of the “sunset clause” and the default rule • Questions about the potential impact of the “sunset clause” and the associated default rule: analysis of the legal issues as well as the economic and strategic aspects • Study by an independent consultant sponsored by the regulators • ACER final decision on CAM (Summer 2011) • ENTSOG works in Network Code (until Feb 2012) • Assessment of Network Code by ACER (3 months) • Comitology Procedure (mid/end 2012)

  8. Thank You!

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