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Balancing workstream

Balancing workstream. General remarks & conclusions. The was general discussion about the problems experienced within gas balancing mechanisms Importance of transparency within & between gas balancing regimes was highlighted

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Balancing workstream

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  1. Balancing workstream

  2. General remarks & conclusions • The was general discussion about the problems experienced within gas balancing mechanisms • Importance of transparency within & between gas balancing regimes was highlighted • Some issues of interaction between regimes were identified but it was pointed out that more work is needed to better understand what the problems are

  3. Way forward / actions • Development of information templates for gas balancing in consultation with stakeholders to improve transparency and therefore ability to manage risk within/across balancing mechanisms (3 “pilots” – with wider roll out if successful) • Development of 2 case studies on gas balancing interactions – to explore in more detail the interactions between balancing mechanisms (one could be Dutch/German to link with day ahead auction work) • Workstream on “blue-sky thinking” on balancing to look at issues not captured elsewhere to try and improve gas balancing mechanisms – some possible e.g’s: • Use OBAs • Use of TSO storage • Impact of unmetered sites

  4. Who & when • 1 week for all to respond to way forward & volunteer for Enabler Group • Initial outline information templates for 3 pilots: Who: Market operators. By: (20 April – 1 week before next SG workshop). Consultation. Then finalise. • Initial report on case studies: Who: Enabler Group. By: (20 April – 1 week before next SG workshop). Consultation. Then finalise with recommendations. • Initial terms of reference on „blue-sky thinking“: Who: Enabler Group. By: (20 April – 1 week before next SG workshop). Consultation. Then finalise.

  5. Transparency workstream

  6. General remarks & conclusions • The workstream discussed the issues raised in the facilitation paper and data appendix • There was a recognition that transparency needs to be improved across all areas • There was a recognition that the less than 3 rule needs to be looked at (application, data aggregation and role of regulators) • There was a recognition that there are areas of best practice that we could learn from and potentially apply on a wider basis • There was recognition that there is potentially inconsistency in capacity data but that ERGEG should take this forward as part of their existing Task Force • Need to focus on regional issues and ensure coordination/consistency with EU level initiatives

  7. Way forward / actions • Development of Action Plans to help meet the issues raised by respondents to the questionnaires to improve the level of transparency • What/scope/frequency of information • Timeline for making changes etc • Assessment of any reasonable costs • Potential quick wins • Consultation with stakeholders • Identify implementation and monitoring process • Rule of 3: • Possibility publishing aggregated data • Development of code of practice/guidelines for better application of rule of 3 • Best practice • An inventory of best practice that could be “rolled out” on a wider basis

  8. Who & when • 1 week for all to respond to way forward & volunteer for Enabler Group • Action Plan: Who: Market operators. By: (20 April – 1 week before next SG workshop). Consultation. Then finalise. • Less than 3: Who: Enabler Group. By: (20 April – 1 week before next SG workshop). Consultation. Then finalise. • Best practice: Who: Enabler Group. By: (20 April – 1 week before next SG workshop). Consultation. Then finalise.

  9. Regulatory co-ordination

  10. Conclusions (1) • A code of practice for regulators in the NW region should be developed • The code should include • General principles (timely, transparent, etc) • Checklist/issue list of market arrangements on which co-ordination should take place • Goal of the co-ordination is the allignment of processes (e.g. timing of open seasons)

  11. General remarks • Cross-border user forum of all participants should be consulted on cross-border issues • Align regulatory co-ordination with national processes and responsibilities, where necessary include governments, users, operators • Process of developing regulatory co-ordination should be broadened to include governments as they often have regulatory powers - RGI is the right forum to do this

  12. Way forward • Conclusion paper in March, • Highlight where issues are being dealt with • Highlight practical difficulties (regulatory powers, role of government) • Code of Practice draft in March (including how co-ordination between regulators can take place in practice) • Documents for discussion at April workshop

  13. Hub Liquidity

  14. Hub liquidity and efficient transmission and trade of gas between hubs • Remarks: • capacity release, • main focus on framework (access, rules), • large zones with volume based tariffs with no need for capacity booking inside the zone • With possible merger of e.g. Danish and German hubs by further harmonisation of rules (balancing and access to capacity) • only benefical with large markets if enough capacity and few balacing zones, • Gas quality at specific hubs (Zeebrügge) • standardize balancing (daily vs. hourly) and products, reasonable imbalances cost if not market based, grid company and TSO should work together to make trading of imbalances possible • all liquidity need to be centered at the hubs

  15. Conclusions • The barriers mentioned in answers of questionnaires are found to be the central barriers • Balancing and gas quality also seems to be main barriers • All hubs are inflicted with problems • Timing: • Deadline for comments 28 February. • Conclusion paper in March

  16. Interconnections and primary capacity market

  17. Conclusions • Way forward should focus on the details at specific interconnection points • Assessment of the situation at specific IP requires an improved data basis (Solution: publishing of (aggregated) data, provide data to NRAs) • Investment important issue where contractual (?) and physical congestions occur; efficient CMP for contractually congested IP. • Better coordination of capacity products and booking procedures • Inter-TSO and inter-NRA coordination • Interconnection points: all the IP proposed in the slides plus Ellund, Zelzate; shippers are encouraged to give their priorities • No objections on the time schedule proposed

  18. Way forward / actions

  19. Interconnections and secondary capacity market

  20. Contractual congestion is shown at primary capacity workshop Availability of firm capacity in 2005: Directionof flow Availability 0% <10% Overall Indication for the IPs considered

  21. Conclusions • Contractual congestion is shown, now how we can re-allocate (if available) underutilised capacity? • Secondary market is not a means to its end but it helps • Design variables: pro, con identified • Hot issues shown: e.g. Facilitation party, need for long term commitment, need for long and short term products • Tomorrow we go on that at Day Ahead Auction WS • Other congestion management ideas need to be assessed as solution in parallel: • Positive incentives • E.g. Clarity on investments in future (no point for hoarding), more transparency • Negative • E.g. Study on improving FIRM UIOLI and ideas like releasable capacity • Follow-up needs to allow for more comments

  22. Way forward / actions

  23. Day ahead capacity auctions

  24. General remarks • EFET and operator proposals were discussed • Compliance with existing legal, regulatory and contractual requirements • Highly actual information on contractual data, nominated data and flow data and other information to be further defined are necessary to assess e.g. level of interruption risk • Wish to have firm (priority !) and interruptible capacity auctioned; process needs to be clear; recycling of capacities is needed • Offer of APX to organise auction on product to be defined by the market (“design variables”) • Pilot project • Review of pilot required; may lead to re-design • DTe offers monthly meeting in Den Haag to discuss • GRTgaz offers to work on additional cross border points • If not TSO platform, tender should be conducted • Commitment on start date and duration of pilot

  25. Conclusions • Appreciation of the urgent need to act • Various views on type of product but majority supports combination of secondary and interruptible primary • Clear message by Operators that trading could start at latest on 1 April 2008 • Clear message that market wants to start as soon as possible • Commitment to contribute to work plan by • EFET and • Operators and • Key stakeholders

  26. Way forward / actions • Meetings/telephone conferences • Monthly Jour Fixe: • Operators at IPs • EFET • Platform operators • DTe and possibly BNetzA and DERA • Updates on process by DTe to Stakeholders and opportunity to comment • Presentation of renewed proposal on workshops in April

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