1. The Incremental Proposal
Informal Member State Meeting
21st January 2014

2. Madrid Forum recommendation
Madrid Forum XXII recommendation (October 2012)
« […] that processes are established by which capacity demand beyond the offer of existing capacity can be satisfied in a market‐based manner […]”
ACER Guidance (30 Nov 2013)
For the case of incremental and new capacity in the CAM NC, ACER has therefore asked ENTSOG to draft an Incremental Proposal based on the ACER guidance.
EC invitation (19 Dec 2013)
EC invited ENTSOG to provide the Incremental Proposal for the amendment of the CAM NC until 31 December 2014.

3. Incremental Proposal Development Process3

4. Interactions between TAR NC and INC proposal
for the TAR NC, developed by INC team
Section on INC and new CAP from Chapter 2 ‘Publication requirements’
ACER Guidance on INC and new CAP
Section 3.5 on INC and new CAP from Chapter 3 ‘Cost allocation…’
Section 3.5 ‘Incremental and new capacity’:
3.5.1 ‘Economic test’
3.5.2 ‘Determination of the price at which users can request incremental and new capacity’
for the TAR NC, developed by TAR team
for the CAM NC, developed by INC team 4

5. The INC proposal timeline: Fully aligned with TAR5

6. Incremental Capacity Process6

7. Incremental Capacity Process
Proceeding towards commissioning
Market based investments
When to offer
Technical studies and design of capacities
Analysis of previous auction results
Analysis in framework NDP/TYNDP
Auction or Open Seasons?
Positive result
of economic test
processing
Market analysis / request by shippers
Definition of regulatory framework :
setting of f factor
Run allocation mechanism
Design Phase
Market Test Phase

8. The «Incremental Proposal»
Amendment of CAM NC
Drafting of TAR NC
(Section & section 3.5 on incremental and new capacity)
When to offer incremental/new capacity
Integration of auctions for existing and incremental capacity
Conditions for the use of open seasons and choice of allocation procedure
Cross-border coordination process and rules on information provision
Definition of parameters for the economic test
Process for agreeing on a single economic test
Setting and adjustment of tariffs for incremental/new capacity

9. INC Proposal Development Information9

10. ENTSOG Website Menu 10

11. Publications: Tariff Section11

12. Mark Wiekens Advisor, Market Area