1 Capacity and Congestion Management Duties of TSOs - Availability of infrastructure and capacities for shippers to fulfil their supply obligations - Guarantee technical security of supply - The process to provide this service depends on the availability of different input factors in the national market (infrastructure, overall supply situation) and determines the capacity model to be applied

2 Capacity and Congestion Management Different capacity models - Notional path model - Availability of capacity on notional path guaranteed (A  B) - Reflects high degree of import dependence - Applied in Continental Europe - Importance of transits through the system - Entry/exit model - Capacity at specific entry/exit points - No contractual link between entry and exit - Applied in Italy and UK (poolbased) - No or limited transits - Large number of end users supplied by one TSO (UK)

3 Capacity and Congestion Management Determination of capacities - In general to determined by technical parameters as well as supply/ demand scenarios under the most severe conditions. - Notional path model Capacity in each part of the network between specific points On the basis of contractual obligations the capacity determined as described above is offered unconditionally to shippers - Entry/exit model Capacities at specific entry/exit points UK: Entry Capacity is offered on the basis of seasonal supply/demand assumptions Italy: Entry capacity is offered on the basis of the most severe conditions (summer conditions)

4 Capacity and Congestion Management Allocation of capacities - Principle Non-discrimination - Notional path model First come first served In some systems priorities e.g. for public service Allocation process often standardised (e.g. answer to request in max. period of time) - Entry/exit model Auction or first come first served In UK poolbased approach with auctions

5 Capacity and Congestion Management Publication of available capacities - Principles Information is snapshot No basis for access request Specific capacity check for each request - Notional path model Information on capacity at specific point does not say anything on capacity between specific points. Most operators do not publish due to commercial and contractual considerations: Often only few shippers at nodal points or only one large shipper. Information on available capacity enables conclusions on commercial terms in respective supply contracts Ensure non-discrimination between shippers with respect to capacity information

6 Capacity and Congestion Management Publication of available capacities (Cont..) - Entry/exit model Information may be helpful to manage short term congestions. In systems with a large number of shippers at nodal points commercial sensitivity of capacity information redundant. - Map of European gas grid GTE present map of European gas grid with technical capacities at cross border nodal points and traffic light system with regard to available capacities to give qualitative information to shippers at an early stage

7 Capacity and Congestion Management Suggestions for development - Improve transparency by publication of maps with capacity information and procedural rules for capacity allocation - Implement procedures to challenge capacity allocation decisions - Remove impediments for secondary markets - Offer interruptible services if firm services are not available