Allocation of Capacity in Portugal Under the New Regulation 24th IG meeting S-GRI, Madrid September 23, 2013

New Regulatory Framework Index Main changes New Regulatory Framework Capacity Managment Next Steps

enabling the implementation of secondary market Main changes What has changed with the new regulation on Access to Gas Infrastructures? 5 Major changes Assignment of capacity rights by the TSO for MT and ST products Convergence towards CAM NC rules Ex-ante payment of capacity rights Capacity allocation via booking platform (Primary Market) Promotion of the secondary market for capacity rights trading Shippers must buy capacity rights to use the transmission system Capacity allocation calendar, standardization of products, allocation through auction, etc. Shippers pay according to allocated capacity, instead of used capacity, at all entry/exit points (except LDC) Improves interaction between primary and secondary market, while enabling daily auctions Enhances liquidity, avoiding contractual congestion The new Regulation sets a complete new standard for capacity booking and trading, promoting convergence with CAM NC and enabling the implementation of secondary market

New Regulatory Framework Index Main changes New Regulatory Framework Capacity Managment Next Steps

Before After Changes within the scope of Regulatory documents New Regulatory Framework Changes within the scope of Regulatory documents Relevant regulatory documents that govern the capacity allocation process: Main activities Programming / Nomination Daily Operation / System Management MAC, MEDC, MRC (per infrastructure) MPGTG Before System Operation Commercial Margins Imbalances Penalties Cap. Calculation Cap. Programming Congestion Mgmt. Assignment of Capacity Rights MPAI MPGTG Product definition Auction rules Cap. Allocation Invoicing Credit Risk Mgmt. Combines former contents with nomination rules Includes provisions on Secondary Market After NOTE: MPAI (Infrastructure’s Access Procedures Manual) – New regulatory document, encompasses former 8 documents governing cap. calculation (MEDC), cap. allocation (MAC), congestion management (MRC) and Strategic Reserves storages

New Regulatory Framework Index Main changes New Regulatory Framework Capacity Managment Next Steps

A major change in the capacity management chain Until 30th September, 2013 Commercial Mgmt. (TSO) Available capacity is published Programming/ Nominating ‘Allocation’ Utilization Payment due for used capacity Global System Manager Before Gas Day Gas Day After Gas Day As from 1st October, 2013 Commercial Mgmt. (TSO) Available Products Capacity allocation (auctions) Capacity contracting Payment due for contracted capacity Shippers Forecasts/ Nomination Utilization Global System Manager

Yearly Quarterly Monthly Daily x Capacity Management Standard Products offered Products \ Maturity Yearly Quarterly Monthly Daily (week-ahead) (day-ahead) Storage of LNG x Underground storage Physical IPs (*) Regasification at LNG terminal Backhaul at LNG terminal UGS injection UGS withdrawal (*) only for unbundled capacity at Valença do Minho and Campo Maior (outside the VIP)

Calendar for 2013 and beyond Capacity Management Calendar for 2013 and beyond (VIP) Y and Q Capacity Auctions (VIP) M and D Cap. Allocation (FCFS) Yearly Capacity Products * Yearly Consumpt Forecast Quarterly Capacity Products * Monthly Capacity Products * Y and M Utilization Forecast Rolling Day-Ahead Capacity Auctions 2013/ 2014 30.Sep 2013 - 30.Sep 2014 Jun/Jul As from Jul 31.Jul-06.Sep 3.Sep 06–13.Sep 13 - 20.Sep 23.Sep Daily Capacity (Re)-Nomination Governing Reg. MPAI MPGTG 2014/ … 30.Sep 2014 - 30.Sep … Mar Jun As from Sep 3.Sep 16 - 23.Sep Yearly Capacity Auctions Quarterly Capacity Auctions Rolling Monthly Capacity Auctions Yearly Consumption Forecast Yearly and Monthly Utilization Forecast Rolling Day-Ahead Capacity Auctions * This activity includes the publication of available capacity, the auction and the final allocation of capacity to shippers

Concerned Entity / Means Capacity Management Changes on Shipper / TSO interaction Activity Publication of Available Capacity Capacity Bidding Annual Consumption Forecast Announcement of Congestion Preliminary Auction Results Registration of Allocated Capacity Utilization Forecast/ Nomination Concerned Entity / Means TSO / @IGN REN’s Platform Shipper / Form (e-mail to OMIP) Shipper / Form (e-mail to GSM) REN via OMIP / OMIPlus REN via OMIP / OMIClear

New Regulatory Framework Index Main changes New Regulatory Framework Capacity Managment Next Steps

Provisions to complete the regulatory framework Next steps Provisions to complete the regulatory framework Revision of general terms of capacity contracts Revision of the main operational procedures’ manual – MPGTG Definition and implementation of CMP rules Further harmonization (Gas Day, nomination schedules, etc.)

Thank you for your attention! 24th IG meeting S-GRI, Madrid September 23, 2013