1. Implementation of the Network Code Balancing in the Netherlands Marcel Neef 28 November 2013

2. Programme 1.Introduction Network Code (NC) Balancing 2.Process steps in the Netherlands 3.Current balancing regime 4.Daily imbalance charges 5.Balancing actions on the gas exchange 6.Lessons learned

3. 1. NC on Gas Balancing of Transmission Networks Harmonization of EU-wide rules on balancing  Goal: to enable network users throughout the EU to manage balancing positions economically efficient and to be able to do it in a non-discriminative manner  EU timeline 2011ACER Framework Guidelines 2012 ENTSOG Network Code Balancing 2013NC approved in comitology process 2014NC expected to be in effect as of October 2014 2015Expected end of implementation period is October 2015

4.  GTS assessed the impact of the NC Balancing on the Dutch market based balancing regime. Number of changes needed and two choices to be made  Implementation decisions made in close consultation with network users, representative organizations and regulator ACM  Implementation as of June 2014 2. Process steps in the Netherlands

5. 06:00  Continuous market based balancing  Network users have primary balancing responsibility  Maximal linepack flexibility available for network users  Near real time information provision 3. Current balancing regime Shipper A Shipper B SBS

6.  NC Balancing states two implementation options: end of day settlement and Linepack Flexibility Service 4. Daily imbalance charges End of day settlement 06:00 Shipper A SBS Shipper B

7. 4. Daily imbalance charges Linepack Flexibility Service 06:00 Use of Linepack Flexibility Service Shipper A SBS Shipper B Use of Linepack Flexibility Service  NC Balancing states two implementation options: end of day settlement and Linepack Flexibility Service

8.  Current regime: balancing actions via dedicated bid price ladder mechanism; our own initial balancing platform  NC states two options –Continue the balancing platform as an interim measure –Use the within-day market of the gas exchange with NC product merit order  Use of the within-day market preferred by network users and representative organizations 5. Balancing actions on the gas exchange

9. 06:00 SBS hh:20 SBS prognosis is in light green zone: TTF Balance of day product SBS prognosis is in orange or red zone: TTF Next Hour product  Delivery on TTF  Use of title products in line with NC merit order  Two products: TTF Balance of day and TTF Next hour prognosis

10.  Close and transparant consultation with stakeholders contributes to a succesfull implementation process  Network users prefer to have the lowest balancing costs  Interpretation NC not always easy  First step towards harmonization  Alignment with gas exchange is a lot of work 6. Lessons learned

11. Thank you for your attention