1. Gas Transmission Europe
European wide body representing cross-border gas transmission companies and the transmission arms of integrated gas companies

2. GTE Members

3. GTE ambition and objectives
Promoting the development of a fully operational European transmission system
Promoting the enhancement of cross-border transmission
Supporting interoperability of the European transmission systems
Promoting market solutions
Contributing to the setting of a clear and stable public policy framework
Voicing the opinion of the transmission companies in Europe.

4. GTE organisation
GTE has set up several working groups to work on its objectives:
WG Tariffs (Bernard Brelle)
WG Capacity and Congestion (Fritz Gautier)
WG Interoperability (solid contribution to EASEE-gas) (Patrick Wailliez)
WG Balancing and Storage  recently dissolved
New: WG Security of Supply (Brian Withington)

5. GTE Publications ( www.gte.be)
GTE Position Paper
Reports regarding Balancing & Storage, Capacity & Congestion Management, Interoperability and Transmission Tariff issues
European grid map including a traffic light system with respect to available capacities at all major cross-border points
European-wide comparison of transmission tariffs

6. GTE activities Actively involved in the Madrid Forum
Regular meetings with the associations representing the users of the grid (EFET, Eurelectric, Eurogas, IFIEC and OGP)
Setting up of EASEE-gas jointly with the Edigas Group

7. Madrid Forum Guidelines for Good Practice
Apply
Transparency requirements
Non-discrimination requirements
Promotion of interoperability
Facilitation of cross border trade to:
TPA services; tariff structure; balancing and imbalance charges and secondary markets

8. Implementation of Guidelines for Good Practice: Responses to GTE Questionnaire
Responses received
Responses not yet received

9. GTE questionnaire: Compliance TPA Services
Are unbundled TPA services offered?
Non discriminatory services to all customers?
Conditions of services in English published?
Physical & available capacities published?
TSO activity pursues harmonization to facilitate interoperability?
Long and short term services offered?
TPA services and access rules facilitate transmission to neighbouring regimes?
Capacity services facilitate trading?
Nomination procedures standardized?
Non discriminatory transport capacity allocation?
Procedure for short term congestion / shortcoming / failure in place
TSO independence secured / guaranteed?

10. GTE Questionnaire: TPA services

11. GTE Questionnaire: transparency of capacity

12. GTE Questionnaire:Tariff structure
TSO’s should publish information on:
General tariff methodology
Definition of the cost base
Tariff structure (point-to-point, Entry-exit, zonal etc.)
Functional allocation and capacity/commodity allocation
Detailed tariff design
Indexation of tariffs
Specific tariffs for special services (i.c. backhaul)
Regulatory involvement in tariff setting

13. GTE Questionnaire: Tariff Structure

14. GTE Questionnaire: Balancing
TSO’s should:
Design non discriminatory, transparent balancing rules
Ensure that the rules are applied unbiased
Ensure charges are cost neutral with incentives
Ensure compatibility between balancing regimes
Design non hampering balancing regimes
Facilitate pooling
Inform the market about the imbalance status

15. GTE Questionnaire: Balancing

16. GTE Questionnaire: secondary markets
TSO’s should:
Allow TPA capacity rights to be tradable
Discourage Capacity Hoarding, Facilitate re-utilisation

17. GTE Questionnaire: secondary markets

18. Current issues European Energy Infrastructure
2nd European Gas Directive
Security of Supply

19. European Energy Infrastructure, GTE position
Investment climate must be based on economic principles and give proper incentives
Investment decisions by market players  avoid European central planning
Avoid obligations to invest. If used nonetheless:
assess possible distortions to the market
Long term contracts will continue to play an important role
GTE actively pursues practical guidelines agreed in Madrid
GTE advocates a clear and stable regulatory framework

20. 2nd Directive, GTE position:
Separate approach for gas and electricity Directives; gas is not a universal service
Stable and predictable legal framework needed  but now qualitative changes to the gas Directive after two years only
2nd Directive must not conflict with practical guidelines agreed at Madrid Forum
Take into account GTE comments on European Energy Infrastructure
Furthermore: Unclear definition of system; No need for a European regulator; Further legal unbundling not required

21. Security of supply Mission of the GTE Security of Supply WG:
provide a clear understanding of the concept of security of supply as well as the roles and responsibilities of market players;
ensure that the pivotal role of investment in transportation infrastructure is properly recognised (and rewarded)
recommend an appropriate framework for ensuring continued security of supply which minimises centralised intervention and maximises industry decision making

22. CONCLUSIONS
GTE contributes actively and positively to the development of the European gas market and the Madrid Process
GTE differs with CEER and DGTREN mainly on opinion on market influence vs. regulatory involvement
GTE strongly opposes European central planning
GTE members are making progress on implementation of Guidelines for Good Practice