1. TITRE XXI Madrid Forum 22nd and 23rd March 2012 GRI SSE Progress and Outlook Walter Boltz GRI SSE Co-Chair

2. Geographical Scope of the GRI SSE XXI Madrid Forum GRI SSE Austria Bulgaria Cyprus Czech Republic Greece Hungary Italy Poland Romania Slovakia Slovenia

3. Progress and Ongoing work 2011-2014 Work Plan includes recommendations of XX. MF Further updates to reflect prioritization and new deliverables, based on stakeholder survey. Active participation in ACER GRI Coordination Group to report on progress Lack of involvement by some stakeholders and NRAs, high level of commitment from others Member state involvement should increase XXI Madrid Forum GRI SSE

4. NB: Based on attendance of 5th/6th/7th/9th/10th/11th SG meetings – for illustration.

5. Main Achievements (I) Succesful pilot project on early implementation of CAM: GATRAC platform Extension of GATRAC platform announced at December ’11 stakeholder group meeting GATRAC platform is already a cross-regional pilot project Day-ahead capacity auction pilot project introduced at AT/IT border following shipper consultation XXI Madrid Forum GRI SSE

6. Main Achievements (II) Studies on future market architecture scenarios launched CEGH on track to provide a cross-border connection to neighbouring market areas in cooperation with respective TSOs Sharing of experiences concerning infrastructure developments & SoS implementation in the region Survey on tansparency monitoring by NRAs started XXI Madrid Forum GRI SSE

7. Deliverables (I) DELIVERABLE I.1 Standard products & Interoperability ACTIONRESPONSIBLEDEADLINE All the TSOs adopt the EASEE standards with special reference to gas-day definition, unit and OBAs TSOs2012/2013 Harmonization of TSO’ procedures decreasing shippers’ risk and imbalances in 2012 SK/CZ/DERO, BNetzA, URSO 2012 XXI Madrid Forum GRI SSE Increased harmonisation in the field of interoperability is particularly beneficial in GRI SSE region.

8. Pressure Energy Volume Gross Calorific Value Implementat ion of CBP 2003- 001/01 Harmonisati on of Units Red=milestone not implemented Yellow: partially implemented Green: fully implemented RO+BG+CY: No answers. (EASEE Gas Implementation Progress Review 2010)

9. Deliverables (II) DELIVERABLE II.1 Bundled capacity allocation at Austria/Italy IP ACTIONRESPONSIBLEDEADLINE Agreement on harmonised nomination and re- nomination rules SNAM/TAG2012 Harmonised calculation of available firm and interruptible capacities SNAM/TAG2012 Proposal for a procedure for the coordinated allocation of daily capacity SNAM/TAG2012 Definition of a bundled capacity product to be allocated by explicit auctions in order to connect PSV and Baumgarten SNAM/TAG2013

10. Deliverables (III) XXI Madrid Forum GRI SSE DELIVERABLE III.1 Bundled products ACTIONRESPONSIBLEDEADLINE Concept for the realisation of bundled products at all SSE regional IPs Net4Gas together with partner TSOs 2012 Implementation of bundled product offers at further SSE regional IPs Regional TSOs2012+ DELIVERABLE IV.1 Cross-Regional Balancing Platform ACTIONRESPONSIBLEDEADLINE Implementation of a cross-regional balancing platform CEGH2012

11. Deliverables (IV) XXI Madrid Forum GRI SSE DELIVERABLE V.1 Structure of future balancing zones ACTIONRESPONSIBLEDEADLINE Analysis of macroeconomic benefits linked to implementing different models for balancing and trading zones NRAs2012 Case study on institutional and practical steps to implement the provisions of the GTM in the region NRAs / TSOs/ Stakeholders 2012 Definition of the model for future regional balancing and trading zones. SG2012/2013 Planning and launch of implementationSG2014+

12. Deliverables (V) DELIVERABLE VI.1+2 Interconnections and available transmission capacity ACTIONRESPONSIBLEDEADLINE Check investment plans against the background of future market architecture scenarios TSOs coordinated by GRI Lead Regulators ongoing Consultation of the Gas Regional Investment Plans TSOs with active stakeholder involvement 2012 Ensure GRI SSE involvement on all levels in the process of identifying PCI in the framework of the EIP Lead NRAs with active involvement of all other parties of the GRI SSE 2012

13. Deliverables (VI) DELIVERABLE VIII.1 Security of Supply ACTIONRESPONSIBLEDEADLINE Exchange best practice and consult SoS preventive action plans within the GRI SSE Member States and NRAs Ongoing DELIVERABLE IX.1 Transparency ACTIONRESPONSIBLEDEADLINE Survey NRA activities with regard to monitoring of transparency requirements NRAs2012

14. Steps Forward Work on all deliverables is ongoing in 2012 with a focus on early implementation of CAM, with the further extension of the GATRAC platform, GTM implementation and infrastructure Full commitment from TSOs and stakeholders is required for early implementation pilots Strong cooperation needed between NRAs & between NRAs, TSOs and stakeholders to support implementation of pilot projects Sharing of best practices across regions will be promoted, especially on GATRAC platform. New opportunities for regional work due to policy developments (EIP) within existing priorities XXI Madrid Forum GRI SSE

15. Outlook and new deliverables: EIP Identification of potential PCI in the SSE region in 2012 Contact between GRI SSE and EC is established Stakeholders informed and invited to express interest Kick-off meeting to establish working group Identification of potential PCI by Q3 2012 Challenge due to geographical scope of regions: (GRI / GRIPS /EIP do not exactly coincide) XXI Madrid Forum GRI SSE

16. Outlook and new deliverables: Transparency Viewed mainly as an NRA responsibility Survey of NRA transparency monitoring activities in the region carried out NRAs asked to provide information on level of compliance with transparency requirements by TSOs Further investigations possible in a second step XXI Madrid Forum GRI SSE

17. Outlook and new deliverables: GTM Pilot project to identify possibilities for GTM implementation (market areas/trading regions) (1) One « macro level » study on possibilities for cross- border market integration in Europe Analysis of macroeconomic/welfare benefits of market integration – 2 case regions (2) One case study on identification of possible implementation steps of the measures proposed in the Gas Target Model Great potential for sharing outcome on a cross-regional level XXI Madrid Forum GRI SSE

18. EVENT TITLE OF THE PRESENTATION Overview on the physical capacity utilization at IPs in Europe in 2011 PT F F LUX DE H SL I CH ? ? ? Physical capacity utilization (PCU) is measured by comparing actual physical flows with declared technical capacities (TC) on a daily or hourly basis. The pie represents the percentage of time of different PCU levels. TC are usually calculated for long periods and do not consider short term short term changes in market and network conditions. Interruptible capacities are only interrupted at Oberkappel. ?

19. EVENT TITLE OF THE PRESENTATION Capacity utilization at Oberkappel The actual utilization of the IP Oberkappel exceeds the declared TC for most of the time. An approximated TC has been determined which is 90% of the monthly average of the allocated capacities during curtailment periods. The TC of BOG is usually x% higher than the approximated TC.

20. EVENT TITLE OF THE PRESENTATION Preliminary conclusions The actual utilization of the IPs in Europe is generally low, i.e. there are significant physical transmission capacities available at most Ips. The NWE region seems to have significant excess capacities compared to today‘s utilization (2011). The SWE region experienced unusually high utilization rates in 2011 at the IP in Larrau, most likely of the low temperatures during the winter 2011. The SEE (around Austria) is relatively high loaded, but still significant capacities are available at many IPs. The transmission requests (nominations) – although exceeding the calculated TCs - can be executed for most of the time. TSOs and regulators need to cooperate in the development of guidelines for TC calculation that are coherent with the expected utilization of the network. The actually allocated capacity at Oberkappel was significantly below the TC declared by OGE. By investing in additional capacity in Germany only the capacity of the entire IP can be increased.

21. Outlook and new deliverables: SoS Always considered a priority by stakeholders in the GRI SSE Sharing of preventive action plans and risk assessments, exchange of best practices Potential for sharing approach on a cross- regional level XXI Madrid Forum GRI SSE

22. Conclusions Governance structures to support work of lead regulators in their GRI Definition of pilot projects should be a bottom-up process from the regions with NRAs, TSOs and other stakeholders involved Involvement of Member states needs to be enhanced Commitment from all countries is necessary to achieve progress towards 2014 goals in the GRI SSE XXI Madrid Forum GRI SSE 30 May : GRI SSE-REMIT Conference in Vienna, open to all stakeholders and market participants 31 May: GRI SSE Stakeholder Group & RCC Meeting, Vienna.

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