1. Shippers’ Meeting 29 June 2005
NH Hotel - Naarden

2. Program Introduction Paul van der Laan
Conditions and system Jan Willem van Dijk
Change in structure TSC 2006 Jan Eggink
Miscellaneous Jan Eggink
Closing Paul van der Laan
Lunch

3. Program Introduction Paul van der Laan
Conditions and system Jan Willem van Dijk
Change in structure TSC 2006 Jan Eggink
Miscellaneous Jan Eggink
Closing Paul van der Laan
Lunch

4. Conditions and system 2006

5. Penalty => Surcharge
Introduction
Highlights
Penalty => Surcharge
More time to balance exits
More tolerance during the day
Since previous presentation

6. Subjects
Delay time between entry and exit
Tolerance on contracted transport capacity
Tolerance principles
Tolerance amounts
Commodity pricing
Surcharges exceeding tolerance boundaries
Incentive day

7. 1 Delay in entry with respect to exit Default
Two hours delay
Balance/imbalance based on Exit(t) = Entry(t+2)
Per portfolio
Independent of ambient temperature
Gas day on entry time from (LET)
Rules and imbalance correction for first two hours of entry and last two hours of exit (“two hour settlement”):
New regime
New portfolio
Change in entry or exit contract in an existing portfolio
Two hour settlement at the end of each month

8. 1 Delay in entry with respect to exit Exceptions: no delay time
TTF
On entry time =>also all trading on entry time
1.5 hour time for exit balancing when TTF is entry
Entry balancing via TTF remains the same as in the current system
Wheeling and short haul
Shipper choice: Exit(t) = Entry(t)
Complete portfolio
Per calendar year
Compared to t+2 non optimal for pipeline network -> 25% hourly and cumulative tolerance reduction

9. 2 Tolerance on contracted transport capacity
On firm entry and exit contracts in a portfolio
On interruptible contracts the tolerance amount is reduced in line with the applicable tariff class percentage
Wheeling and short haul portfolios limited to 2%* tolerance on the hour
No tolerance on TTF
Tolerance based on monthly average of contracted transport capacity in a portfolio
Overbooking of domestic exits and interruptible
GTS retains right to adjust tolerance percentages of shippers in case of overbooking (e.g. no tolerance for non users above normal demand capacity)
*Properties differ from current operational margin

10. 3 Tolerance principles Example of portfolio with 20% hourly tolerance

11. 4 Tolerance amounts Hourly and cumulative tolerance
Depending on number of portfolios and portfolios sizes
Development from three class system with fixed percentages to “tax bracket” system
Three brackets
All shippers receive tolerance of first bracket
Shippers above the first threshold receive the tolerance of second bracket etc.
Introduction of minimal hourly tolerance level
For large diversified portfolios the portfolio uncertainty reaches a constant percentage
Portfolio splitting
GTS will provide portfolio hourly and cumulative tolerance per portfolio on an affiliate company level

12. 4 Tolerance amounts “Tax bracket” system with minimum level Indicative percentages (transport contracting 2005)
For default portfolios and temperatures above 0 oC:
For hourly and cumulative tolerance below 0o C a linear decrease from the level in the table above to respectively 2% for hourly and 4% for cumulative tolerance at –17 oC
Reset to neutral at end of the gas day
Bracket
mln m3/h
Hourly tolerance
per m3/h
Cumulative tolerance per m3/h
Minimal hourly tolerance %
Minimal cumulative tolerance %
0.00 – 0.25
30%
120%
0.25 – 1.00 8%
32%
13.5%
54%
1.00 – >
5.7%
22.8% 6%
24%

13. 4 Tolerance amounts Hourly tolerance as function of portfolio size

14. 4 Tolerance amounts Daily tolerance
New regime 24% of contracted hourly capacity
Reset to neutral (0) at end of gas day
No fall back to zero level in case of exceeding boundaries
No temperature dependency
In the view of GTS reset at the end of the gas day is not a TSO task because of the trading implications
Decrease of daily tolerance is first step in repairing reset amount to levels corresponding to the TSO role of GTS
Current regime 2% of daily volume based on accumulation of 2% uncertainty margin
2% uncertainty is valid for 1 entry or 1 exit
Uncertainty in portfolio balance volumes is much less

15. On day ahead spot indicators
5 Commodity price
On day ahead spot indicators
APX Netherlands (TTF)
APX UK (NBP)
APX Belgium (Zeebrugge)
Excess on lowest indicator
Shortage on highest indicator
Exceptions
Monthly average APX Netherlands
Reconciliation
Two hour settlement

16. 6 Surcharges exceeding tolerance boundaries
Surcharges expressed as percentage of excess or shortage commodity price
Excess
Low commodity price
Shortage
High commodity price
Hourly
10%
15%
Cumulative
100%
Daily

17. 7 Incentive day Introduction of incentive day
Days with high loads on the transportation system (e.g. ambient temperatures below 2 oC)
Shipper is required to balance on Exit(t) = Entry(t+1)
Announcement of an incentive day by GTS day ahead before hour L.E.T.
All other balancing rules, boundaries and penalties remain unchanged
Portfolio is entered into “incentive day” scheme on calendar year basis
Incentive
Shipper receive a financial incentive based on the portfolio size in the applicable months of the year
Incentive amount is not yet decided

18. Closing remarks
Current status not final
Subject to approval DTe
Tolerance percentages dependent on transport contracting in 2006
Presented tolerance percentages and examples based on default portfolios
Attention drawn on 25% tolerance reduction for non default portfolios on Exit(t) = Entry(t)

19. Program Introduction Paul van der Laan
Conditions and system Jan Willem van Dijk
Change in structure TSC 2006 Jan Eggink
Miscellaneous Jan Eggink
Closing Paul van der Laan
Lunch

20. Transmission Service Conditions-2006 (1)
Dutch Gas Act:
Gas Conditions: Tariff structures and Conditions
Proposals by joined network operators (JNO) to DTe
DTe procedure:
DTe compares proposals with legal requirements/standards
DTe sends request to amend to JNO
JNO return amended proposals to DTe
Assessment by DTe (pending further notification from Brussels)

21. Transmission Service Conditions-2006 (2)
Proposals JNO (conditions related to GTS):
Tariff structure
Conditions:
Connection conditions
Transmission conditions
Metering conditions
Allocation methods
General legal tasks

22. Transmission Service Conditions-2006 (3)
Planning
Tariff structure:
Consultation -> finished
Amended version -> DTe
Waiting for DTe assessment (21 July 2005)
Conditions:
Consultation (14 June 2005)
Request to amend from DTe to JNO (mid July?)
Amended version from JNO to DTe (4 weeks later)
Assessment DTe (Q4 2005?)

23. Transmission Service Conditions-2006 (4)
TSC-2006 in addition to Gas Conditions
Elaboration/deepening fundamentals of Gas Conditions
No duplications
New framework, same structure (main text + exhibits)
Timing:
after assessment of Gas Conditions
planning 1 October 2005
Explanation of changes in (next) Shippers’ Meeting

24. Miscellaneous QC 2006 Monthly factors backhaul 2006
Learning year: extended to 2006 for residential customers
Tariffs 2006
Click & Book: new release
Net Topology
Reminder: fill out and send in the customer satisfaction questionnaire

25. Program Introduction Paul van der Laan
Conditions and system Jan Willem van Dijk
Change in structure TSC 2006 Jan Eggink
Miscellaneous Jan Eggink
Closing Paul van der Laan
Lunch

26. Thank you for your attention and enjoy your lunch!
Shippers’ Meeting
29 June 2005
NH Hotel Naarden
Thank you for your attention and enjoy your lunch!