Dte Consultation session, The Hague, 18.02.03 Gasbalancing Conditions for shippers Services offered by GTS Suggestions for improvement A TSO? RWE Gas Nederland N.V. Dte Consultation session, The Hague, 18.02.03

Balancing rules with GTS Daily balance Entry vs exit max delta 2% Hourly tolerance Entry vs exit max tolerance 25% During 2002 & 2003 limited to 13% Extreme penalty regime on imbalances To comply with these rules gas shippers need (online) hourly metering data of the exit points

Information exchange in Dutch Gas Market: a disaster! Hourly offtake data customers > 10 mio (GTS grid) daily available Hourly offtake data customers < 10 mio (RDC‘s) very limited available. Most of the RDC‘s failed completely in their data-management. Data comes available months after the fact Allocations to gas shippers on a national level impossible. In Feb 2003 there is still no allocation available for Jan 2002 GTS acting „considerate“, RDC‘s slightly improving

Main Shippers (RWE, & Others, etc) behaviour I want to have my customer‘s hourly off-take data because: I have the need to optimise my operations, and I want to comply with GTS rules Forget about the RDC‘s, I will put in my own (state of the art) metering equipment

Main Shippers behaviour At „RDC-sites“: install metering & datacommunication units Use of prognosis tools & software Wheather reports vs actuals, always differences Max accuracy demand prognosis at metered site 95% to 105%

Dte transport guidelines GTS daily imbalance max 2% ! Shippers cannot achieve this with the current data situation GTS is obliged to offer a flexibility service Shippers must be able to balance their portfolio J. de Jong

GTS offers Tolerance Service Does it work? Did it work? No, on day 3 the shipper is in trouble He oversupplied his TSV, volume sold at half price! Pay 1.5 million € for TSV service, after 3 days nevertheless in trouble!!

How is the largest shipper managing its balancing? Gasunie Trade & Supply does not do off-take prognosis nor hourly nominations! GTS is doing this for them! As a service!?

Actions of the (new) shippers! Advised GTS on an other method using the TSV, namely daily “new start” Requested daily info on “volume in buffer” Requested daily info on “imbalance situation” No results yet! GTS often still acting as “old Gasunie” However GTS is making significant progress in cooperative acting!

TSO, a system operator for gas? Is this real, I can hardly believe it! Would this TSO ask us what we need? Would it develop products together with us? Will it share day to data with the shippers?