1. Improvement of transparency of regional Virtual Trading Points in SSE
Pilot project X:
Improvement of transparency of regional Virtual Trading Points in SSE
Regulatory perspectives
GRI SSE –Budapest, 8 July 2016
TITRE

2. GRI SSE – pilot project X
Questionnaire for the assessment and the improvement of transparency of regional Virtual Trading Points in SSE countries ……….. The aim of the project is to improve the transparency of the VTPs in SSE region which in connection with the implementation of the GTM II best practices in gas market design will contribute to raise the liquidity and improve the functioning of gas markets in the region.

3. Countries involved and replies received
GRI SSE – pilot project XII
Countries involved and replies received

4. Access / set-up of Virtual Trading Point (VTP) Trading venues
GRI SSE – pilot project X
42 questions
Access / set-up of Virtual Trading Point (VTP)
Trading venues
Price reporting / price indices
Liquidity situation
Technical operative framework for VTP services
Cooperation with
EFET, CEGH, ACER

5. No En/Ex are at the final stage of establishment
GRI SSE – pilot project X
Access / set-up of Virtual Trading Point (VTP)
1) Is there in your country an entry- /exit system established?
(y /n )
No En/Ex are at the final stage of establishment

6. Access / set-up of Virtual Trading Point (VTP)
GRI SSE – pilot project X
Access / set-up of Virtual Trading Point (VTP)
2) Is there a VTP established? (y /n )
the entry-exit system includes a Virtual Nomination Point (VNP) which is accessible only by holders of capacity contracts (shippers).

7. Access / set-up of Virtual Trading Point (VTP)
GRI SSE – pilot project X
Access / set-up of Virtual Trading Point (VTP)
3)/4/5) Is there the VTP owned by an independent VTP operator?* (y /n )
*Certified TSO, no incumbent/vertical integrated company
n/a

8. Access / set-up of Virtual Trading Point (VTP)
GRI SSE – pilot project X
Access / set-up of Virtual Trading Point (VTP)
7) Do you have different access conditions for virtual and physical traders? (y /n )
n/a

9. Access / set-up of Virtual Trading Point (VTP)
GRI SSE – pilot project X
Access / set-up of Virtual Trading Point (VTP)
9) Is a license for (wholesale) trade a condition to trade at VTP? (y /n )
n/a

10. Access / set-up of Virtual Trading Point (VTP)
GRI SSE – pilot project X
Access / set-up of Virtual Trading Point (VTP)
17) Is the VTP the only point, on which the title of gas can be transferred (i.e. ownership transfer)*? (y /n )
* Not considering title transfer in storage facilities

11. 19) Which trading venues are established in the market area?
GRI SSE – pilot project X
Trading venues
19) Which trading venues are established in the market area?
Brokers? (y /n )
Exchange(s) ? (y /n ) 1
n.a 1 7 2
n.a

12. GRI SSE – pilot project X
Trading venues
20) Are market makers active / available in the respective market area*? (y /n )
* In the gas exchage
Not in scope
of eustream
activities
n/a

13. GRI SSE – pilot project X
Trading venues
24) Is the market area (TSO(s) + DSO(s)) provided by one balancing system or more ?
The two balancing zones
do not include DSOs networks. 2 2 1
>2

14. Price reporting / price indices
GRI SSE – pilot project X
Price reporting / price indices
25) Are price reporting agencies (e.g. ICIS, Platts, Argus) covering the respective market area? (y /n ) 2
n/a 2 4 1
>3

15. Price reporting / price indices
GRI SSE – pilot project X
Price reporting / price indices
27) Is there a near real time system average price/system marginal price reporting by the TSO/Hub Operator/gas- exchange?(y /n )
NO All data are made accessible
after trading session..
n/a

16. GRI SSE – pilot project X
Liquidity situation
29) Does the VTP operator have any mechanism to keep the VTP liquid? (e.g. liquidity provider, balancing platform etc.) ? (y /n )
n/a
n/a

17. Technical operative framework for VTP services
GRI SSE – pilot project X
Technical operative framework for VTP services
32) Is the VTP operated on a 24/7 basis? (y /n )
n/a

18. Technical operative framework for VTP services
GRI SSE – pilot project X
Technical operative framework for VTP services
34) Is an intra-day nomination and re-nomination possible? (y /n )
Basically yes, but the
nominations of exchange
transactions are not
possible to be re-nominated.
Currently closure time to
record Daily Transaction
with reference to the same
Gas-day is at p.m.

19. Technical operative framework for VTP services
GRI SSE – pilot project X
Technical operative framework for VTP services
36) Does the Balancing NC require changes to the rules and design of the VTP/HUB? (y /n )

20. Technical operative framework for VTP services
GRI SSE – pilot project X
Technical operative framework for VTP services
38) Are all relevant legal documents available in English also? (y /n )
n/a

21. Technical operative framework for VTP services
GRI SSE – pilot project X
Technical operative framework for VTP services
39) Is there a minimum lead time before changes to market rules apply? (y /n ) 14
Depending on specific
issues. 30 30

22. Technical operative framework for VTP services
GRI SSE – pilot project X
Technical operative framework for VTP services
40) Are there regular shipper meetings? (y /n )
n/a

23. 3rd Energy Package still to be implemented fully
GRI SSE – pilot project X
Lesson learnt
Still a long way to go to achieve well developed and liquid VTP/HUBs in all the SSE countries
3rd Energy Package still to be implemented fully
Potential local resistences of different nature could delay the development process and have to be overcome
Benchmarking of best practices should be envisaged
Decreasing of entry barriers 23

24. Strong inputs from market players
GRI SSE – pilot project X
Lesson learnt
Tighter cooperation among NRAs, VTP Operators and market players should be envisaged
Strong inputs from market players
Necessity to speed up of the implementation of BAL NC in the single MS
GRI SSE important platform to bring together different stackeholders and to discuss specific regulatory and market oriented issues
Monitoring by NRAs/ACER of the critical issues identified in this survey
To apply the provisions of the GTMII
Abolishing trading licenses 24

25. GRI SSE – pilot project X
GRI SSE – Budapest, 08 July 2016

26. Definitions Gas market
The sum of gas (wholesale) trading activities (spot to forward (inclusive)) with delivery agreed on a (single) specific delivery hub.
Hub
The virtual trading point of an entry/exit system where the TSO (or a separate independent entity dedicated at national level) handles all nominations for the transfer of title to gas between network users (or balancing accounts)
Transparent market
The sum of gas trading activities (spot, prompt and forward) with delivery agreed on a (one) specific delivery point and concluded using a transparent trading venue (i.e. exchange, broker platform).
Note: the main delivery points are the virtual trading points of entry/exit systems. Distinct delivery points are considered as separate markets.
Virtual trading point
A notional point in an entry/exit system at which natural gas can be traded within the entry/exit system after injection and before offtake.