1. EU Codes: Implementation Issues
Gas Forum Wholesale Markets Group
UNC Transmission Workgroup, 9th January 2014

2. Key Issues for Shippers
Framework Guidelines (FG) on Tariffs
CAM Implementation
Governance Process

3. Framework Guidelines on Tariffs
Fundamental commercial impact for Shippers
Ofgem Gas Transmission Charging Review (GTCR)
Application beyond interconnectors?
Gas Forum has launched a sub-group to consider impact on Shippers in more detail…
Although the Network Code has been requested to be drafted, there are areas within the FG which might be “open to interpretation”; for example, in relation to commodity charges:
Must all commodity charges be derived purely from volume-related costs?
Does the “5%” limit on revenues generated from commodity charges apply across the network, or just at IPs?

4. CAM Implementation Bacton Gas Day change
Capacity auctions – overall process and pricing remains unclear
Transfer of capacity between sub-ASEPs – how is this going to be handled?
Concern that interconnectors are somewhat different to “traditional” IPs and the imposition of CAM could restrict flexibility. New rules must not compromise the operation of the interconnectors, which have proved to be market responsive.
Need to take into account change in ownership of IUK capacity in 2018
Gas Day change
how will implementation be handled for offshore and onshore? Different regimes?

5. Governance Process
To date, GF members believe the process has been relatively well handled by National Grid
Consistent updates at Transmission Workgroup
NG engaging well with industry
We should not forget that industry has the option to defer implementation, if deemed necessary
To this end, we should programme review stages to consider viability of meeting various implementation timetables