1. Regulators’ views on Transparency
Dominique Jamme
Director Gas Infrastructure and Networks
Commission de Régulation de l’Energie
GIE Annual Conference, November 2007

2. Transparency in transport Transparency in storage
Agenda
Introduction
Transparency in transport
Transparency in storage
GIE Annual Conference, November 2007

3. The importance of transparency
Transparency is a prerequisite for the development of competitive markets
It allows newcomers to book at first capacity in the infrastructure and use efficiently all mechanism (ie IUOLI) in order to optimize the capacities and gas flows of their portfolio
It shows whether there is capacity hoarding
It helps investments decisions
Independent operators should be willing to provide transparency as much as possibe in order to sell in the best possible conditions their capacity products
On the contrary, lack of transparency favours the incumbent suppliers
Large discrepancies between TSOs of published information create an uneven playing field between shippers
Transparency on capacity and flows is key
GIE Annual Conference, November 2007

4. Transparency in transport Transparency in storage
Agenda
Introduction
Transparency in transport
Transparency in storage
GIE Annual Conference, November 2007

5. The current level of transparency in transport in Europe is unsatisfactory
According to the ERGEG 2007 compliance report, transparency requirements in Regulation 1775/2005/EC is unsatisfactory. In particular
The publication of historical flows (publication of maximum and minimum utilisation rate) is low
The publication of contracted and available capacities is unsatisfactory
In addition, the monitoring indicates that publication is restrained because of the extensive use by some TSOs of the minus 3 rule
The results of the monitoring shows that a high number of TSOs limit their publications without the authorisation of their NRAs
GIE Annual Conference, November 2007

6. At EU level, transparency remains a priority for regulators
The EU Commission has suppressed the minus 3 rule in the 3rd package proposal
This was a recommendation of ERGEG
ERGEG proposes further improvements in the publication in particular the replacement of maximum and minimum flows with daily flows
At regional level, regulators tackle transparency issues
For example, in the NW region, transparency has been improved at Taisnières (Fluxys) and Obergailbach (GDFDT)
However, TSOs have requested not to publish for more than 100 points in Germany and 15 points in the Netherlands
GIE Annual Conference, November 2007

7. ERGEG Transparency Monitoring 2007
GIE Annual Conference, November 2007

8. ERGEG Transparency Monitoring 2007
Publication of information limited
Publication of information not limited
GIE Annual Conference, November 2007

9. ERGEG Transparency Monitoring 2007
Report clearly shows:
Un- satisfactory and un- acceptable level of compliance in some areas!
GIE Annual Conference, November 2007

10. Transparency in transport Transparency in storage
Agenda
Introduction
Transparency in transport
Transparency in storage
GIE Annual Conference, November 2007

11. Regulators have also identified a significant lack of transparency regarding storages
In March 2005, the industry voluntarily agreed to comply with the GGPSSO
This includes transparency requirements, which are crucial both in terms of competition and SoS
The monitoring of these guidelines by the ERGEG has shown a low level of compliance with regard to the most important points, including transparency
GIE Annual Conference, November 2007

12. Regulators have also identified a significant lack of transparency regarding storages
ERGEG’s 2006 report showed that
Out of the EU’s 20 largest SSOs, 12 did not respect the requirements about gas in store levels, inflows and outflows
In spite of having more than 3 users, 7 SSOs did not publish aggregated outflows, aggregated inflows and historical utilization rates (or publish information that is not of good quality)
12 SSOs did not publish information about maintenance periods
An informal check on the progress made by SSOs since ERGEG had delivered its final report showed only limited progress
These results need to be improved
GIE Annual Conference, November 2007

13. Regulators support measures related to storage access proposed in the 3rd package
The storage proposals of the 3rd package follow a series of recommendations of ERGEG
This way forward is a very good news and is completely justified. With regard to transparency, the proposals are:
“Detailed information regarding the technical information necessary to gain effective access”
Contracted capacity and available capacity on a regular, rolling, numerical, user friendly and non-discriminatory basis
Gas in store, inflows, outflows to be published on a daily basis, including those exempted from TPA
The publication of gas in stock, inflows and outflows should become the standard now.
GIE Annual Conference, November 2007

14. Conclusions
Information allowing newcomers to better access the facilities is essential
ERGEG has played an essential role to improve transparency as it is key for competition
ERGEG will continue to be active/leader on that issue
GIE Annual Conference, November 2007