EWRC-RAE MUTUAL PROJECTS ENERGY AND WATER REGULATORY COMMISSION EWRC-RAE MUTUAL PROJECTS PROGRESS UPDATE IN CAM AND BAL NC IMPLEMENTATION

ENERGY AND WATER REGULATORY COMMISSION HISTORY The two common Bulgaria-Greece projects were introduced in SEE GRI working plan in 2015 - 2018. PROJECT IV: Common capacity allocation procedures and bundling of capacity products between Bulgaria and Greece. PROJECT VI : Harmonization of the procedure for the exchange of the Interim Measures Reports between Greek and Bulgarian TSOs and NRAs.

Main purposes of the projects ENERGY AND WATER REGULATORY COMMISSION Main purposes of the projects The projects are aimed to implement the CAM and BAL NC at the common GR-BG interconnection point (Kulata-Sidirokastro). Continuation of common useful cooperation between the Bulgarian and Greek NRAs (EWRC and RAE) and relevant TSOs (Bulgartransgaz and DESFA).

CAM NC finalized actions ENERGY AND WATER REGULATORY COMMISSION CAM NC finalized actions Both TSOs have decided to choose Regional Booking Platform (RBP). Joint method for the optimization of the technical capacity, including the assessment of the pressure commitments, demand/supply scenarios. Definition of bundled capacity products on both sides of the IP.

CAM NC finalized actions ENERGY AND WATER REGULATORY COMMISSION CAM NC finalized actions Definition of unbundled capacity products on both sides of the IP. Bulgartransgaz and DESFA signed an Interconnection agreement in 25 of June 2016. This provides for possibility for reverse virtual gas flow (backhole) for the users on the territory of Bulgaria.

ENERGY AND WATER REGULATORY COMMISSION CAM ACTIONS UNDER WAY Definition of interruptible capacity products at the IP. Joint decision on minimum interruption lead times. Establishment of a communication procedure between the TSOs concerning the notification of capacity interruption.

ENERGY AND WATER REGULATORY COMMISSION CAM ACTIONS UNDER WAY Establishment of a joint procedure for the definition of interruption sequence. Definition of data exchange formats. Alignment of information systems. Definition of communication procedures to be developed for the implementation of CAM.

ENERGY AND WATER REGULATORY COMMISSION BAL NC IMPLEMENTATION Development of the draft Interim Measures Report by each TSO, as foreseen by article 46 of BAL NC. Beginning of Public Consultation period, during which, each TSO shall communicate the draft report under consultation to the stakeholders (adjacent TSOs and market participants).

ENERGY AND WATER REGULATORY COMMISSION BAL NC IMPLEMENTATION Each TSO having taken into consideration possible comments from the stakeholders (adjacent TSOs and market participants) proceeds to submit to the respective NRA the complete Interim Measures Report. Consultation between NRAs on each TSO complete annual interim measure report. Each NRA approves the report according to the provisions of BAL NC.

BAL NC IMPLEMENTATION IN BULGARIA ENERGY AND WATER REGULATORY COMMISSION BAL NC IMPLEMENTATION IN BULGARIA Energy and Water Regulatory Commission has approved a report on the application of interim measures developed by Bulgartransgaz in accordance with Art. 46 of Regulation (EU) №312 / 2014 of 26 March 2014 laying down the Network code for balancing the gas transmission networks.

BAL NC IMPLEMENTATION IN BULGARIA ENERGY AND WATER REGULATORY COMMISSION BAL NC IMPLEMENTATION IN BULGARIA The following interim measures approved: An alternative to a balancing platform: - Bulgartransgaz has announced non-discriminatory and transparent procedures for purchase of gas for balancing in accordance with Art.8 of the Regulation; - Linepack (within acceptable tolerance); - Underground gas storage „Chiren“. Interim imbalance charge Tolerances +/- 5%

ENERGY AND WATER REGULATORY COMMISSION BAL NC IMPLEMENTATION The exchange of the interim measures by Bulgartransgaz and DESFA will help to harmonize balancing schemes applied in Bulgaria and Greece and lead to market integration and efficient gas market operation.

THANK YOU FOR YOUR ATTANTION! ENERGY AND WATER REGULATORY COMMISSION THANK YOU FOR YOUR ATTANTION! Contact: Victoria Jermanova – Chief expert „Prices,licence and markets – natural gas “department „Natural gas “division Energy and water regulatory commission (EWRC) Bulgaria E-mail:vjermanova@dker.bg Victoria Jermanova Chief expert “ Natural gas“ Division EWRC e-mail:vjermanova@dker.bg