European Developments Transmission Workgroup 1 st December 2011

Interoperability Network Code Update Transmission Workgroup 1 st December 2011

Introduction  ‘Interoperability’ represents the third priority area of European Network Code development  The term refers to the ability of diverse networks to work together - ‘inter-operate’  The aim of the Code is to harmonise the physical / operational differences between TSOs that could impair the functioning of the EU gas market

Interoperability Timeline FG Drafting FG Consultation FG sent to Commission Network Code Development ComitologyImplementation Period (?)

Draft Framework Guideline  Scope of application is to all European TSO entry and exit points  ENTSOG view (supported by NG NTS) is that it should only apply to cross border interconnection points  Nomination matching processes supported by OBAs  Harmonisation of interconnection agreements  Harmonisation of units  Gas quality  Data exchange  Capacity calculation

Next Steps  Interoperability Framework Guideline to be published by ACER for consultation in mid-December  ACER workshop in January 2012  Consultation closes in mid-February 2012  Final Framework Guideline submitted by ACER to the Commission in Spring 2012  Code drafting starts in Summer 2012

Gas Regional Investment Plan – NW Region Transmission Workgroup 1 st December 2011

North West Gas Regional Investment Plan 15 TSO from 9 NW European Countries Based on Regulation (EC) 715/2009 (July 13 th 2009) GRIP to be published once every two years (art 12.1) TSOs may take investment decisions based on that GRIP (art. 12.1) TYNDP shall take into account GRIPs (art. 8.10)

Objective of the GRIP  To focus on transmission projects of the NW Region which have an impact on cross-border capacities  Highlight the extent to which these projects impact the Interconnection points Capacity within the NW region  Provide the most recent useful information on Transmission projects to stakeholders  Support informed discussion in assessing the ability of investment projects to answer regional market needs  First edition of GRIP feed back from stakeholder to improve the effectiveness of future editions

NW GRIP Structure  Foreword  Introduction  North West Specifics  Supply and Demand  Transmission Projects  Next Steps  Projects Information  Country Profiles  Border Point Reviews

Transmission Projects  Matrix Extract: identifying IP influenced by TSO projects

National Grid Perspective  First report of its kind, and it should be remembered that across the North West region, each country is at a different stage in their development of National let alone regional plans  As the report was only focused on projects that have a direct impact on Cross Border Capacities, couple with National Grid RIIO submission and the Infrastructure development that has occurred over the last decade, the GRIP shows minimal UK projects.  The UK Country Profile outlines clearly that in the coming years, investment in infrastructure will be key, especially with regard to network flexibility and the meeting of the governments targets.

Next Steps  Regional cooperation between TSOs is a key element for the effective integration of gas markets in NW Europe – very good co-operation from all parties in the process  GRIP was published on 21 st November 2011 – available on ENTSOG or participating TSO website  Presented to NW Gas Regional Initiatives on 25 th November  Consultation document will be published together with the GRIP  Consolidated feed back on consultation will be given in Q1 2012

EU Updates Timetable  Timetable aims to highlight the key items (consultations, workshops, decisions, etc.) NG NTS expect to cover via this agenda item in the forthcoming months TopicTX Workgroup EU Gas Balancing Update CAM Update Interoperability – differences between initial Framework Guidelines and version issued for consultation Jan 5th 2012 CAM & CMP UpdateFeb 2nd 2012 Interoperability - National Grid NTS response to FG consultation Gas Regional Investment Plan (GRIP) Consultation Feedback. March 2012