1. Convergence in the structure of access tariffs – Harmonisation between cross border and domestic access tariffs in Spain and Portugal (MIBGAS) Terms of reference

2. 2 Convergence in the structure of access tariffs OBJECTIVE : Elaboration of a common proposal for the harmonization between cross border and domestic access tariffs between the natural gas systems of Portugal and Spain In order to guarantee an uniform access, at the Iberian level (MIBGAS), it is necessary to harmonize the access tariffs systems. In particular, it is necessary to analyze the distortions and difficulties that may arise from the application of access tariffs to cross border flows between Spain and Portugal in the creation of MIBGAS, with a focus on tariffs pancaking and eventual discrimination between cross border and domestic flows. The regulation of access prices must allow the adequate functioning of a competitive market and be compatible with the creation of a natural gas regional market.

3. 3 Convergence in the structure of access tariffs In order to develop this work the following steps are proposed : 1. Creation of a working group to elaborate a proposal for the harmonization between cross border and domestic access tariffs between the natural gas systems of Spain and Portugal, with the participation of the regulators (CNE and ERSE). 2. Make a comparative study of the actual access tariffs applied to cross border flows between Portugal and Spain, identifying the main differences and main obstacles to overcome. 3. Elaboration of a proposal defining the rules to be applied to access tariffs incurred by cross border flows between Portugal and Spain. These rules must, in one hand, ensure non-discrimination between cross border and national flows in the scope of MIBGAS and, in other hand, facilitate market development. 4. Make a public consultation to all agents of the sector. 5. Elaboration of a Proposal of Rules to apply to access tariffs incurred by cross border flows in MIBGAS, to submit to the governments of Portugal and Spain and which allows its application in each state by the competent authorities for the access tariffs approval.