1. Joint ACER-ENTSOG update on implementation of the Balancing NC 26 th Madrid Forum 16 October 2014

2. ACER and ENTSOG Questionnaire I  The 25 th Madrid Forum tasked ACER and ENTSOG with following up the Balancing NC implementation across Europe and collecting national implementation plans ACER and ENTSOG developed a joint questionnaire and asked NRAs and TSOs to work together to provide a single answer per country Joint responses received from the NRAs and TSOs of all 22 Member States surveyed Purpose of the questionnaire: understanding the differing implementation paths being undertaken identifying common challenges and potential issues highlighting areas for cross border cooperation

3. ACER and ENTSOG Questionnaire II Questionnaire useful for all stakeholders in the gas market: implementation milestones and schedules for the Member States calculation methodologies of daily imbalacing charges and neutrality charges methodologies of information provision, nominations and WDOS The Joint ENTSOG-ACER Report on the early implementation of the BAL NC is now available on ENTSOG and ACER websites: Link 1 Link 2 Information shown in the following slides is based on TSO and NRA responses in July-August 2014

4. Expected implementation timeline by country 4 By 1 October 2015 => BAL NC implemented in 10 COUNTRIES (AT, BE, DK, FR, GB, HU, IT, LU, NL, SI)

5. Main challenges as perceived by TSOs and NRAs: Implementation challenges  Investment in new IT equipment; metering changes  Extensive cooperation with NRAs, DSOs, Network Users needed  Ensuring adequate data quality and formats Information provision  Determination of relevant Short term Standardised Products  More difficult where: Liquidity is low; Countries do not currently have trading platforms.  Redesign of current nomination processes (continuous re- nomination cycle)  Extensive cooperation with adjacent TSOs needed Nominations Operational balancing

6. Existence of a trading platform Lack of trading platforms in a number of relevant Eastern markets even beyond 2016

7. Nominations Strong efforts by the majority of MS to comply by 2015 Cross-border cooperation expected/ongoing

8. 8 Information Provision Strong efforts by the majority of MS to comply by 2016 Cross-border cooperation expected/ongoing

9. Cross Border Cooperation The report shows limited cross-border cooperation => most of the provisions of the code will be implemented on a national basis and do not require wide international cooperation Areas where respondents indicated that cross-border cooperation is taking place (and/or planned) with the adjacent TSO/NRA concerns: Nominations-renominations Interconnection agreements and provisions for IPs Short Term Standardised Products Within-Day obligations Implementation of a trading hub, gas day and units Trading possibilities within an adjacent market for balancing purposes Interim Measures Cross-border aspects may require further attention in future implementation reviews

10. BAL NC implementation workshop with the Energy Community in Vienna on 27 November 2014 Cooperation between ENTSOG and the Energy Community (EnC) Objective: To explain the BAL NC and share knowledge regarding balancing practises focusing on CEE countries and members from the EnC Participants are TSOs, regulators from EU MS and EnC Presentations on balancing practices reflecting various market conditions: NW Europe, CEE countries and contracting parties from the EnC Panel discussion on implementation options Discussion on way forward

11. Conclusions Implementation is well underway across Europe Many challenges still lie ahead, but… …extensive discussion between NRAs, TSOs and market participants Limited cross border elements identified, further attention may be required Good cooperation seen between NRAs, TSOs, ACER and ENTSOG ACER and ENTSOG will build on this experience and continue to coordinate future efforts ACER/ENTSOG Report on the early implementation of the BAL NC will be updated in one year

12. Thank you for your attention!