1. EUROPEAN TRANSPARENCY UPDATE
Olaf Islei
European Strategy Team
04 June 2009

2. PHASE ONE

3. TRANSMISSION TRANSPARENCY PROJECT FINALISED 26 MAY 2009
Voluntary project to publish information on capacity availability and gas flows
Seventeen TSOs agreed to publish daily information for seven deliverables
TSOs to publish data at cross-border interconnection points except where less than 3 shipper rule applies
TSOs agreed to publish by one of three milestones: May, September or December 2008

4. PROJECT OVERVIEW: JANUARY 2008
E.ON GT
Fluxys
Svenska Kraftnät
RWE TNG
National Grid
IUK
Gas-link
WIN-GAS
On-tras
GRT gaz
Energinet.dk
Gas-unie DT
DEP
Swede-gas
GRT-gaz DT
GTS
BBL
(C1) Max technical capacity
in place
earlier
(C2) Interruption
later
final
(C3) Daily commercial firm and interruptible capacity
(F1) Daily flow / aggregated Allocation
(F2) Daily prompt allocation information
(F3) Daily aggregate day-ahead nominations
(F4) Historic gas flow information database
April 2008
Existing before project start
October 2008
no answer
December 2008

5. PROJECT OVERVIEW: MAY 2009 E.ON GT Fluxys Svenska Kraftnät RWE TNG
National Grid
IUK
Gas-link
WIN-GAS
Ontras
GRT-gaz
Energinet.dk
Gasunie DT
DEP
Swedegas
GRT-gaz DT
GTS
BBL
(C1) Max technical capacity
in place
(C2) Interruption
 in place
In place
(C3) Daily commercial firm and interruptible capacity
(F1) Daily flow / aggregated Allocation
Oct 2009
May 2009
(F2) Daily prompt allocation information
(F3) Daily aggregate day-ahead nominations
July 2009
Dec 2009
No date
(F4) Historic gas flow information database
Number of IPs 22 19 1 5 8 4 3 9 6 7 2 25
3 minus rule IPs 12
TSOs report published
Specific date
Less than three shippers
Not committed to date
Not applicable

6. PHASE TWO

7. EUROPEAN STORAGE TRANSPARENCY PROPOSAL AGREED
GRI NW regulators and Gas Storage Europe (GSE) wrote to storage operators to request support and participation
Address security of supply concerns ahead of winter and step toward third package implementation
Updated weekly
Volume of gas in storage
Eight hub areas
Some major storage
operators missing
1 October and
30 November
2009
Updated daily
Volume of gas in storage
Aggregated inflows
Aggregated outflows
Eight hub areas
Including all major storage
operators

8. EUROPEAN TRANSMISSION TRANSPARENCY NO AGREEMENT ON WAY FORWARD
GRI NW Stakeholders are in the process of agreeing new deliverables
Network users’ minimum transparency requirements
New third package requirements
European Commission transparency guidelines
Transmission operators developing a proposal…
… GRI NW stakeholder group meeting on 9 June in Paris

9. THIRD PACKAGE REQUIREMENTS
Ex-ante and ex-post, supply and demand information based on nominations, forecasts and flows
TSO measures taken as well as costs incurred and revenue generated to balance the system
Sufficient, well timed and reliable on-line based information on balancing status of network users
TSO to aggregate and publish information on volume of gas in storage, inflows and outflows on a daily basis

10. EUROPEAN COMMISSION DRAFT COMITOLOGY PROPOSAL
Annex 3 of the European Gas Regulation
Examples
New requirements on the format for publication
New information on access services i.e. gas quality requirements and inter-TSO balancing agreements
New requirement for “real time” of information on capacity availability and interruptions and flows
REQUIREMENTS IN THE ANNEX ARE NOW MORE DETAILED –
SCOPE TO INFLUENCE

11. PROCESS FOR COMITOLOGY
Timetable
Comments on the draft by the end of June
Impact analysis over the summer
Submit for comitology in September
Routes to influence European Commission
Directly
Organisations such as IFIEC and EFET
Through Ofgem and DECC (Direct and via ERGEG)

12. CONCLUSION
Welcome views of shippers and consumers on the Commission’s comitology proposals
Anything you would like to see published but currently missing
Any areas where you think the guidelines could be more precise
By Monday 15 June
Support for the Regional Initiatives as a tool for early and coordinated implementation of new European legal requirements

13. EUROPEAN NETWORK CODES

14. EUROPEAN CROSS BORDER CODES
Agency for Cooperation of European Regulators (ACER) will develop Framework Guidelines
European Network of TSOs (ENTSOs) will draft cross-border codes
Codes will be made legally binding through comitology process
But will be “without prejudice to Member State’s rights to establish national codes”
Length/depth of framework guideline will depend on the issue being addressed
Current consultations as “input to framework guidelines”

15. EUROPEAN CROSS BORDER CODES
EC defines priorities for network codes
6 Months
EC requests ACER to submit framework guidelines
Agency prepares Framework Guidelines
ENTSOs prepares network codes
12 Months
EC requests ENTSOs to submit network code
3 Months
ACER approves network codes
ENTSOs submits network code to ACER
ACER submits network code to EC when satisfied, recommending approval via Comitology
COMITOLOGY
FIRST EU NETWORK CODES BY 2012 AT THE EARLIEST

16. DEVELOPING FRAMEWORK GUIDELINES
Step 1 “Initial Impact Assessment” (IIA) or preparatory work (Before ACER)
Identification of problems and objectives
Identification of policy options (pros and cons)
Public consultation
Selection of policy option (if possible)
Step 2 preparation/drafting of framework guideline by the Agency (After ACER)
Draft framework guideline
Finalised framework guideline
To complement processes: Calls for evidence (only for new areas), workshops, public hearings and ad hoc experts groups

17. EUROPEAN CROSS BORDER CODES
Network security and reliability rules
Network connection rules
Third-party access rules
Data exchange and settlement rules
Interoperability rules
Operational procedures
Capacity allocation and congestion management rules
(CAM and CMP)
Rules for trading
Transparency rules
Balancing rules
Rules regarding harmonised transmission tariff structures
Energy efficiency regarding electricity networks
PILOT PROJECT TO TRY OUT THE PROCESS LIKELY TO BE ON
CAPACITY ALLOCATION AND CONGESTION MANAGEMENT

18. PARTIES NEED TO START ENGAGING NOW
CONCLUSION
Need to consider likely impact for GB consumers
Opportunities for shippers and consumers to influence processes
Respond to consultations
Sit on experts group
Via regulator representing GB in ACER
Via TSO representing GB in ENTSO
ERGEG is keen to get started now – focus on four priority areas (esp. pilot project)
Legally binding codes are some way off
PARTIES NEED TO START ENGAGING NOW