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Stay up-to-date with the European Gas Codes timeline and updates. This includes the implementation of REMIT, capacity allocation arrangements, gas quality data publication, and more.
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European Workgroup European Workgroup 2nd October 2014
Road Map CAM CMP Balancing Interoperability Tariffs Other Phase 1a From 1st Oct 2013 Surrender process (UNC Mod 0449) Phase 1b By Oct 2014 LTUIOLI & enhanced provision of data to ENSOG platform Other EU legislation – REMIT Phase 2a either 1st Oct or 1st Nov Gas Day (enabler) Data exchange, allocations Today 2014 2015 2016 2017 2018 Short term auctions (within day + day ahead +monthly ) capacity allocation arrangements at IPs Cross border nominations etc. Phase 2bon or before 1st Nov Phase 3 Short term UIOLI Long term capacity auctions from Mar 16 (effective 1st Oct 16) Gas quality data publication Implementation of tariff arrangements at IPs (2017) Phase 4 Incremental capacity auctions at IPs (TBC) Notes: 1) Long term capacity auctions may need to be delivered in conjunction with short term auctions
Action from September 2014 EUWG • Action : EU0904: Planned UK Link Downtime and the New Nominations Process at IPs - National Grid NTS to review alignment with the closing times of other TSOs, the OCM and other markets and provide more details at the next meeting. (National Grid NTS, PB)
Responses • Adjacent Transporter system availability • IUK – 24/7 • BBL – 24/7 • BGE(UK) – TBC • Trading markets availability • OCM (ICE Endex) – from 12:00 midday Day-Ahead until 03:35am on the gas day. End time will move to 02:35am from 1 Oct 2015 • OTC (CME Group) - Sunday 11:00 PM – 10:15 PM Friday, with a 45-minute maintenance break each day beginning at 10:15PM
Gemini Housekeeping Window – Next Steps • GB Stakeholders initial view is that current UK Link Downtime meets requirements of Interoperability Code • Biggest impact is on D-1 however there remains considerable opportunity to address balancing position within-day • On the day impact is minimal and outside core business hours (last NDM forecast is midnight) • EU Workgroup suggested wider consultation should be considered • Formal consultation [November] is being considered subject to further discussions with adjacent TSOs 8
EU Tariff Code Update • Areas for revision to presented at Stakeholder refinement workshop 24th September • Transmission Services Definition • Publication Before Annual Auctions • Payable Price • Multipliers • Benchmarking • One-off Capacity Reset • Remainder of the 300+ issues arising from stakeholder consultation to be discussed within ENTSOG until end October.
Transmission Services • Current draft: ‘transmission services’ means the regulated services provided by the transmission system operator to all network users within the entry-exit systemfor the purpose of transmission • The current “Dedicated Services” definition is more contentious but could be something like: ‘dedicated services’ means the regulated services, the revenue from which forms a part of the allowed revenue, other than transmission services provided by the transmission system operator to specific network users, or infrastructure operators, or at specific entry or exit points • There is no proposal at present to include an exhaustive list of “dedicated services” – instead clear criteria shall be established • ENTSOG shall have a discussion if short-haul should have its own article – i.e. in setting tariffs the TSO/NRA “should consider the benefits of avoiding inefficient by-pass”.
Payable Price • ENTSOG shall be proposing a fixed price option at IPs. • The current thinking is as follows: • Floating price tariffs will be the default option • No obligation to provide a fixed price mechanism but the TSO will have the option to make this available (subject to consultation and NRA approval). • Proposal for fixed price mechanism is: • (allocated reserve price +premium) *indexation • The calculation of the premium and the index is to be consulted upon and agreed by the NRA. • Premium can be 0 or indexation can be 1 • Current draft still allows use of commodity charge at IPs for revenue recovery if fixed price used.
One-off Capacity Reset • ENTSOG does not plan to include a reset in the draft Code • ENTSOG Board has agreed for paper to be produced on counter-arguments for a reset • Transfer of risk and cost to the TSO and market • Greater impact on parties unable to move short term capacity bookings • Additional tariff instability immediately post implementation • Need to further consider with other Codes, such as CMP • Can code elaborate on other potential mitigation measures?
EU Incremental Amendment • Stakeholder refinement workshop 23th September. • Main issues of concern were primarily on the following: • The clarity and preciseness of the incremental offer process • Shippers want greater frequency for demand assessment (i.e. > 2 years) • The conditions and parameters of open season procedures • Some concern that defaults to OS is criteria met on one section of incremental route. • How parameters would influence the f-factor • How does this work with auction premium to pass test • How the tariff framework impacts the incremental process • Fixed v floating
Incremental Amendment • Predictability and certainty on tariffs is key concern for shippers with respect to booking long-term capacity to trigger incremental capacity • Incremental Proposal will reflect the principles defined for the TAR NC on fixed vs. floating tariffs • ENTSOG keeps Art 26(2) of CAM NC also in the refined Incremental Proposal Art 26.2 of NC CAM The payable price determined in a capacity auction can be either a fixed price or a variable price or be subject to other arrangements provided for in the applicable regulatory regime. The fixed price shall consist of the applicable tariff at the time of the auction plus the auction premium. The variable price shall consist of the applicable tariff at the time when the capacity can be used plus the auction premium. The arrangements can be different for the capacities in a bundled product on either side of an interconnection point.
Interoperability and Data Exchange:Common Units • EU 0901: National Grid NTS legal view on whether Alternative 2 (rounding the 0.999 conversion factor to 2DPs) would be compliant • Neither the Interoperability Code nor ISO 13443 expressly require the use of a particular number of DPs, however: • Use of 2 DPs is not consistent with the ISO standard in which all conversion factors are quoted to 4 DPs • Quoting the factor at 2 DPs effectively disregards that there is a difference between energy figures quoted at the two sets of reference conditions • NG NTS cannot therefore adopt a conversion factor which treats energy figures quoted by reference to 15/15 reference conditions as being equal to figures quoted by reference to 0/25 reference conditions
Interoperability and Data Exchange:Common Units • National Grid NTS remains open to consider any other options but otherwise will progress one of the following: • Conversion of shipper IP allocations from 0/25 to 15/15 in Gemini • Conversion of IP shipper capacities booked on PRISMA and confirmed nominations (post matching) in Gemini • Add a ‘balancing allocation’ to IP shippers’ accounts in Gemini which represents the difference between its 0/25 allocation and the equivalent value at 15/15 (variation on option 1)
Introduction CEN issued its draft gas quality standard to national standardising bodies in May 2014 BSI’s UK consultation closed on 31st August 2014 BSI committees GSE/4 and GSE/33 have now reviewed the comments received and submitted the UK response to CEN This presentation summarises the UK position and next steps for this standard
CEN Standard: Headlines of the UK Response • BSI has voted to reject the standard as currently drafted and has applied to CEN for a ‘Special National Condition’ (SNC) • Should the standard be adopted, the SNC would insert a foreword to qualify its adoption as British standard • The UK’s technical case for the SNC in summary is: • The gas quality required for safe operation of UK appliances was determined many years ago • For the future, the UK requires a gas quality that ensures their continuing safe operation • Broadening the Wobbe Index to the parameters proposed would undermine the operations of some industrial and commercial gas consumers
CEN Standard:Reasons for BSI’s Negative Vote • The CEN working group should be allowed additional time to take account of the EC’s conclusions document from the 1st July 2014 workshop • Consideration of a narrower Wobbe Index range • Application of the standard • Implementation leadtime • Supporting work is not sufficiently conclusive to agree limits at this stage • A further draft should be issued for public enquiry once comments on the current draft have been considered
CEN Standard – Next Steps National standardising bodies of Member States have until 8th October 2014 to submit votes and comments CEN working group meets in November to review the comments
Phase 2 Delivery Plan Implementation date (not yet approved): 6th September 2015 (shared at the UK Link Committee meeting on 11th September 2014)
Overview of Key System Delivery Stages • Requirements • Business process definition, screen prototypes • Design • Technical design, security • Build • Write system code, test individual components • Testing • Supplier, UAT, external parties, performance, interface • We are working with our Service Providers (Xoserve and NGIS) to determine planned dates for the testing phase. We would like to provide you with more detail on this at the November Workgroup • Implementation • Dress rehearsals, implementation, support
Business and Systems Delivery Team Contact details • Chris Gumbley – EU Programme Delivery Manager • Bill Goode - Gemini Implementation Lead • John McNamara – iGMS & Consequential Change Implementation Lead • Team email: box.gasops.businessc@nationalgrid.com 34
Bridge to 2025 and Gas Target Model ACER Conclusions Paper: 'Energy Regulation: A Bridge to 2025'. Published 23 September. ACER Gas Target Model update: Expected to be published Autumn 2014
REMIT Comitology meeting set for 3 October (expected to be completed in only one meeting). Expected to enter into force by end of 2014
REMIT WORKSHOP - 24 Oct 24 Oct, 10:00 – 12:00 at ENA offices Discussion topics: NG / Xoserve proposed solution to facilitate shippers reporting of secondary capacity trades The future of the NG inside information notifications website https://www.remit.gb.net/ EIC codes – facilitating GB only shippers access to EICs Register by email: europeanpolicy@nationalgrid.com
