European Developments Transmission Workgroup 5 th April 2012

Gas Balancing Update Transmission Workgroup 5 th April 2012

Stakeholder Main activities of ENTSOG and stakeholders during BAL NC development phase Workshop SJWS 1 Roles & responsibilities Imbalances / financial Within-day obs. Info. Provision Above to be confirmed Dec Jan Feb MarApr JuneJuly MayNovJunJulOct Apr Aug Sep Nov Invitation from Commission Submit Network Code Project launch 13/14 Dec 23 SJWS 7-8 SJWS Consultation May Workshop FG Development of Network Code with stakeholder on the basis of the final Framework Guidelines ACER Development of launch documentation Development of draft network code in cooperation with stakeholders Refinement of network code based on the feedback by stakeholders SJWS Feedback on drafted Network Code by ENTSOG Work shop ENTSOG SJWS 2 Balancing products Merit order Charges Interim measures Above to be confirmed SJWS 3 Within-day obs. Info. provision Balancing products Nominations Above to be confirmed SJWS 5 To be confirmed SJWS Oct 9 SJWS 26 SJWS SJWS SJWS 4 Consolidation Preview of network code Cross-border topics Above to be confirmed ENTOG - project plan 3

Consultation Phase ENTSOG  13 April to 14 June - Formal Consultation Web address

Interoperability Update Transmission Workgroup 5 th April 2012

Interoperability Update  ACER published its draft Framework Guideline and associated questionnaire for consultation on 16 th March 2012  The consultation closes on 16 th May 2012  It includes Data Exchange which was originally intended to have its own separate Network Code  These slides provide an overview of ACER’s proposals

Purpose, scope and leadtime  The purpose of the document is to give guidance to ENTSOG to develop the Interoperability Network Code  ACER does not specifically state that the scope will be limited to Interconnection Points, but this appears to be implicit for most topic areas  Unless specifically stated otherwise, TSOs should comply with the Interoperability Network Code within 18 months after it becomes law

1. Interconnection Agreements  A harmonised template is proposed  Covers both operational aspects (eg. measurement) and commercial aspects (eg. shipper allocations)  TSOs are to agree how to deal with “operational imbalances”, OBAs being the “standard preferred option”  Contemplates TSOs undertaking a ‘matching’ process for shipper nominations either side of an IP

2. Harmonisation of Units  When “communicating to counterparties”, ACER proposes that the Network Code shall determine the harmonisation of units for:  Energy  Volume  Pressure  Gross CV

3. Gas Quality  The focus is on transparency and TSO co-operation  Adjacent TSOs should “agree where necessary on the handling of gas quality differences”  TSOs should develop solutions, consult with the market and then submit proposals to relevant NRAs  TSOs should be obliged to “provide relevant network users with pertinent information on gas quality and variations thereto”  ENTSOG should be obliged to publish a biennial gas quality outlook within the TYNDP

4. Odourisation  Non-odourised gas in transmission systems should be the default rule if bilateral agreements fail to address differences in odourisation practices  An implementation leadtime of 36 months is proposed

5. Data Exchange  Extension of CAM requirements to “all other areas where TSOs exchange data between each other or communicate data to counterparties”  The Network Code shall “foresee” a common, standardised messaging protocol for these communications  The selection of format shall be based on a cost-benefit analysis subject to consultation with industry

6. Capacity Calculation  In order to ensure capacity release is maximised at both sides of an IP, ACER proposes obligations on TSOs to:  Provide their methodology used to calculate “technical capacity” at an IP  Co-operate to reduce discrepancies in capacity availability either side of an IP  Provide quarterly updates of technical capacity  A procedure should be included in the Code for identifying and dealing with capacity discrepancies  Obligation on ENTSOG to provide an annual report to ACER on capacity discrepancies and measures being taken to reduce them

7. Cross-border co-operation  TSOs should apply their general mandate for co- operation by implementing the relevant harmonised rules in a timely, technically feasible and economically reasonable manner  ENTSOG shall make recommendations for the improvement of the interoperability and data exchange rules

Next Steps  National Grid NTS is developing its response to the consultation  National Grid NTS will also feed into the ENTSOG and GIE responses  We will provide a summary of our consultation response at the June Transmission Workgroup  We would also encourage the industry to respond

EU CAM Network Code and CMP Guideline Proposal Update Transmission Workgroup 5 th April 2012

Capacity Allocation Mechanism (CAM) - Update  Network Code was formally issued to ACER 6 th March 2012  ACER have since raised a significant amount of questions and challenges with regards to the content of the CAM Network Code  Discussions held between ENTSOG and ACER representatives, with National Grid and Ofgem present  Discussions continue.

Congestion Management Procedures (CMP) Guidelines - Update  DECC has sent the GB Stakeholder comments to the Commission and subsequently issued to the GB stakeholder group via Ofgem on the 8 th March 2012  A revised version of the CMP Guideline will be sent to Member States approximately one month before the next Comitology meeting which is to be held on Friday 20 April 2012  The new text is therefore expected to be available before the next GB stakeholder group meeting to be held on the Friday 13 th April 2012

EU Tariffs Update Transmission Workgroup 5th April 2012

ACER Tariff Scoping Consultation  The ACER Tariff Scoping consultation closed on 26 March  The 35 non-confidential responses are available on its website. akeholder_involvement/Public_consultatations/Open_Public_C onsultations/PC-06/Responses%20to%20PC akeholder_involvement/Public_consultatations/Open_Public_C onsultations/PC-06/Responses%20to%20PC-061  An ‘expert group’ to provide support to ACER on tariffs has been set up and the first meeting will be held 2 April  A verbal update will be provided at the Transmission Workgroup.

EU Updates Timetable  Timetable aims to highlight the key items (consultations, workshops, decisions, etc.) National Grid NTS expect to cover via this agenda item in the forthcoming months TopicTX Workgroup CAM update Balancing Consultation update - Provide further details of consultation and initial views of issues for consideration by GB stakeholders May 2012 Balancing update - Provide update on our views and response CAM update Summary of NG response to Interoperability FG consultation June 2012 Output from SJWS on TYNDP / Final ENTSOG TYNDP proposal July 2012