Gas European Network Code Implementation May 2013 Lisa Martin

What has happened so far? Ofgem open letter on Congestion Management Procedures (CMP) implementation. Included question on impact of change in the Gas Day. Individual TSO process on CMP implementation: NGG consults on Bacton/Moffatt - Ofgem approval IUK consulting (published 30 April) on its I/C – Ofgem/CREG approval BBL consults on its I/C- Ofgem/ACM approval Ireland still under discussion

Summary of responses on change to Gas Day Very consistent tone of responses (non-confidential will be made available on Ofgem website). Avoid underestimating the scale of the task. Preference for early consultation on how it will be implemented and coordinated approach. Preference for early decision on a fixed implementation date. Recognition that change will be felt from offshore to customer meter, with not all parties under Ofgem jurisdiction.

CAM Requirements Implementation 1 November 2015 Capacity to be auctioned as bundled, standard products Applies to interconnector points (Bacton & Moffat) – may also apply to entry and exit points to and from third countries (subject to relevant NRA decision) Applies to capacity that is available to be sold & contracted capacity once it becomes available, e.g. BBL – capacity that is currently unsold & any that becomes available through Oversubscription or Surrender (CMP), further capacity from 2016 IUK – Oversubscription or Surrender, all capacity from 2018 & to relevant capacity at Bacton & in Belgium & Netherlands So stepwise approach to implementation Implementation needs to meet obligations of CAM There are options for implementation

Key Issues to be considered GB issues Shared issues Capacity identification e.g. how to calculate capacity at Bacton? How to bundle capacity? Should changes apply to all entry/exit points in GB or just interconnection points? What booking platform to use (PRISMA ) & how this should be governed? How do we go about changing the gas day? Interaction between capacity/ allocation & nominations (within-day)? Ensuring standardised capacity products are sold TSO cooperation Package approach at cross-border points - look at CAM, nominations in balancing, charging etc

Process Ofgem NGG CREG Fluxys IUK Ofgem NGG ACM GTS BBL Shared issues Shared issues Working groups (GB/ Bel/ NL) ? GB issues Need to consider with Irish NRAs- Moffat