The Incremental Proposal Informal Member State Meeting 21st January 2014
Madrid Forum recommendation Madrid Forum XXII recommendation (October 2012) « […] that processes are established by which capacity demand beyond the offer of existing capacity can be satisfied in a market‐based manner […]” ACER Guidance (30 Nov 2013) For the case of incremental and new capacity in the CAM NC, ACER has therefore asked ENTSOG to draft an Incremental Proposal based on the ACER guidance. EC invitation (19 Dec 2013) EC invited ENTSOG to provide the Incremental Proposal for the amendment of the CAM NC until 31 December 2014.
Incremental Proposal Development Process 3
Interactions between TAR NC and INC proposal for the TAR NC, developed by INC team Section 2.4.1 on INC and new CAP from Chapter 2 ‘Publication requirements’ ACER Guidance on INC and new CAP Section 3.5 on INC and new CAP from Chapter 3 ‘Cost allocation…’ Section 3.5 ‘Incremental and new capacity’: 3.5.1 ‘Economic test’ 3.5.2 ‘Determination of the price at which users can request incremental and new capacity’ for the TAR NC, developed by TAR team for the CAM NC, developed by INC team 4
The INC proposal timeline: Fully aligned with TAR 5
Incremental Capacity Process 6
Incremental Capacity Process Proceeding towards commissioning Market based investments When to offer Technical studies and design of capacities Analysis of previous auction results Analysis in framework NDP/TYNDP Auction or Open Seasons? Positive result of economic test processing Market analysis / request by shippers Definition of regulatory framework : setting of f factor Run allocation mechanism Design Phase Market Test Phase
The «Incremental Proposal» Amendment of CAM NC Drafting of TAR NC (Section 2.4.1 & section 3.5 on incremental and new capacity) When to offer incremental/new capacity Integration of auctions for existing and incremental capacity Conditions for the use of open seasons and choice of allocation procedure Cross-border coordination process and rules on information provision Definition of parameters for the economic test Process for agreeing on a single economic test Setting and adjustment of tariffs for incremental/new capacity
INC Proposal Development Information 9
ENTSOG Website Menu 10
Publications: Tariff Section 11
Mark Wiekens Advisor, Market Area Mark.Wiekens@entsog.eu