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Implementation of EASEE-gas’ rules Or …Working towards a functioning European gas network European Association for the Streamlining of Energy Exchange Maribor October 9, 2007. European Commission. Member States. Regulators. Industry. - PowerPoint PPT Presentation
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Maribor,October 9, 2007
Implementation of EASEE-gas’ rules
Or …Working towards a functioning European gas network
European Association for the Streamlining of
Energy Exchange Maribor October 9, 2007
Maribor,October 9, 2007
Created in March 2002 with the support of the European Gas Regulatory Forum (‘Madrid Forum’)
Mission: “To develop and promote common practices to simplify and streamline business processes between the stakeholders that will lead to an efficient and effective European Gas Market”
Registered office in Paris, France
European Association for the Streamlining of Energy Exchange- gas
Member States
Industry
European Commission
Regulators
Maribor,October 9, 2007
Basic principles
• Open, independent and fully transparent• Structured and balanced voting
• Represents the entire gas chain, open to all stakeholders
• Provides a working platform for the gas industry
• Voluntary guidelines unless adopted by a governmental agency
Organisation
Maribor,October 9, 2007
Ownership of gas Physical flow of gas
Transporters
DistributionNetwork
Operators
DistributionNetwork
Operators
SuppliersSuppliers
Retail Suppliers
Retail Suppliers
Traders &Shippers
Traders &Shippers
AssociateMembers
AssociateMembers
ProducersProducersProducersProducers
End UsersEnd UsersEnd UsersEnd Users
Transporters
DistributionNetwork
Operators
DistributionNetwork
Operators
SuppliersSuppliers
Retail Suppliers
Retail Suppliers
LNG Terminal and Storage Operator and
Service Provider(LTSOSP)
LNG Terminal and Storage Operator and
Service Provider(LTSOSP)
LNG Terminal and Storage Operator and
Service Provider(LTSOSP)
LNG Terminal and Storage Operator and
Service Provider(LTSOSP)
Traders &Shippers
Traders &Shippers
AssociateMembers
AssociateMembers
EASEE-gas Segments
5
Gas market rules & network access at EU level
Commission’s Scope: 10 generic areas Impacting:
Security and reliability rules All Grid connection and access rules, Most Data exchange rules, All Interoperability rules, All Operational procedures in cases of emergencies, Many Capacity allocation / congestion management rules, Some Rules for trading, Some Transparency rules, All Balancing rules including
- rules on nominations procedures, Many - rules for imbalance charges Some - rules for operational balancing between TSO’s systems TSOs
Rules for harmonised transport tariff structures Most
6
Gas market rules & network access at EU level
Market rules designImpact on segments
Network access
Data exchange rules
Interoperability rules
Congestion management
Capacity trading
Commodity trading
Transparency
Balancing rules
Cap. incr. planning, tariff meth.
Master trading agreements
Other bi-lateral agreements
Producers Traders TSOs Service DSOs Suppliers End Users Shippers Providers
7
Gas market rules & network access at EU level
Network operation & physical designImpact on segments
Security-reliability
Maintenance
System losses
Quality commingling (op.)
Residual balancing
Inter TSO compensation
Inter TSO grid operation
Ten-year statement
Tariff method. (existg infrastr)
Op. emergency procedures
Producers Traders TSOs Service DSOs Suppliers End Users Shippers Providers
8
Gas market design & market operation at EU level
Market Rules Network Operating Rules
Market Design
Time
Market Operation
All Market Participants
TSOs only
9
Implementation and optimal management of EU grid
supporting
Market Operation
Developing rules & standardsimpacting all stakeholders
Market Design
Development and implementation of codes, standards, and procedures across the EU 27
• Open, transparent • Binding agreements• Involvement of all stakeholders
EASEE-gas
Producers TSO´s
Suppliers DSO´s
Shippers & Traders
...
End Users
Retail suppliers
Service Providers
GTE+
ERGEG +
Commission
TSO TSO TSO TSO
TSO TSO TSO TSO
TSO TSO TSO TSO
TSO TSO TSO TSOOptimal
Management
Enforcement
Guidance/Regulations
Develop CBP’s
Advice
Consultation Role
CBP Implementation Survey 2007
Approved CBPs included in survey
• 2003 Harmonisation of Units – Implementation deadline 2005
• 2003 Nomination & Matching– Implementation deadline 2005
• 2004 Edig@s– No implementation deadline
• 2005 Gas Quality Harmonisation– Implementation deadlines 2006 and 2010
• 2005 Interconnection Agreement– Implementation deadline 2007
• 2005 Constraints Handling– Implementation deadline 2006
2007 CBPs
• Common Data Communications Network • Message transmission protocol• Company’s Identifier encoding• Connection point identifier encoding
• Harmonisation of the allocation information exchange • Edig@s revision and version rules
• Secondary trading of capacity
Approved Sep 2007
Out for consultation – expected to be approved Nov 2007
Under development
Responses cover 18 markets/ systems
• Survey carried out in Aug/Sep 2007
• Additional responses from Finland, Sweden and Switzerland
• Fewer responses from some other countries
Responses 2004 2005 2007Austria 2 1 1Belgium 4 9 7Denmark 1 1 2Finland 1France 4 6 6Germany 7 8 8Ireland 1 1 1Italy 2 3 1Luxembourg 1 1 1Netherlands 7 8 6Norway 3 4 1Poland 1 0 0Portugal 1 0 1Spain 1 1 1Sweden 1Switzerland 1GB 4 6 6Northern Ireland 1 1IUK 1 2 1
40 52 47
CBP1 Harmonisation of Units Pressure: bar
• All respondents indicated that all markets/systems in the survey are using bar to measure pressure
CBP element implemented
CBP2 Nomination & Matching Process Use of Coordinated Universal Time
• Most markets appear to use Coordinated Universal Time
• UK & IRL require Network Code changes
• SWI indicates systems and financial issues
• AUT indicates legislative and regulatory changes required
• ESP and ITA have not stated barriers
CBP element implementedCBP element not implementedCBP element not implemented due to regulatory/legislative issues
CBP2 Nomination & Matching Process Lesser Rule applies to matchingMessages to contain matching shipper
• Most markets appear to use Lesser Rule for matching
• FIN only has single source, so no need for matching
• The GBR regime does not include matching and agents act for the shippers at interfaces. There are no requests from shippers to change existing arrangements
• IRL, NIR, IUK and POR use matching but not with Lesser Rule in all cases
• All would require Network Code and/or Interconnection Agreement changes
CBP element implementedCBP element not implemented
CBP2 Nomination & Matching Process Deadlines for initial nominations
• Some markets are not complying with nomination deadlines
• FIN only has single source, so deadlines agreed bilaterally
• DEN and SWE working to implement CBP in near future
• Most others have quoted Interconnection Agreements and Network Code changes as barriers to implementation
• No specific barriers mentioned in ITA
CBP element implementedCBP element in process of being implementedCBP element not implemented
CBP 3 Use of Edig@s
• Generally well adopted through central area of Europe
• FIN only has single source so communications agreed
• Some systems in GER use it and others do not
• All others indicate IT issues, internal resource and/or financial issues as barriers
• GBR & SWE also indicate Network Code changes are required
• No specific barriers mentioned in ITA or ESPCBP element implemented
CBP element implemented in some systems
CBP element not implementedCBP element not implemented due to regulatory/legislative issues
CBP4 Gas qualityHarmonisation of S, CO2, WDP, HCDP
• In most systems the CBP has been implemented, partly implemented or is in the process of being implemented
• FIN single source • SWE old limits are close & need
agreement with DEN• BEL, DEN, NOR in process of
implementing all limits• GER some systems adopted ahead
of new DVGW spec.• NED implemented at some points but
legacy problems slowing down others• GBR & POR require legislative
changes to technical specs• IRL & NIR linked to GB spec.• AUT requires changes to OVGW
CBP element implemented
CBP element implemented in some systems
CBP element close to being implemented
CBP element not implemented
CBP element not implemented due to regulatory/legislative issues
CBP4 Gas qualityHarmonisation of Wobbe, RI, Oxygen
• Most systems are either making progress towards the 01/10/2010 deadline or are waiting for the results of the CEN study before implementing changes
• GB also has a Government review to conclude
• IRL & NIR are linked directly to the GB spec.
• Changes required to interconnection agreements in POR
• SWE gave no indication of progress CBP element implemented
CBP element in process of being implemented
CBP element not implementedCBP element not implemented due to regulatory/legislative issues
Survey conclusions
• Quite good progress is being made particularly in markets with largest interconnection
• Non-implementation does not always mean an issue of interoperability (e.g. Finland, Sweden, Ireland)
• Some legislative and regulatory barriers to implementation in some countries (Units & Quality)
• National regulation needs to provide the proper framework/support to allow implementation
• Can take time to modify national network codes and needs support from all market participants
• Countries further east have issue of compliance … with single supplier
22
Implementation of EASEE-Gas CBP in the SSE region relies on a number of factors to be effective
• More feedback and active membership needed, along the whole natural gas value chain in SSE
• Better feedback from EASEE-Gas members: – Czech Republic– Slovenia– Poland
• Feedback from non-EASEE-Gas members:– Producers, shippers, TSOs, DSOs, suppliers/service providers– Especially in the South East Region– BOTH in ERGEG/EU member states– AND in neighbouring countries, e.g. countries of the Energy
Community
23
Participation in EASEE-Gas CBPOn a voluntary basis
• Green:Respondent already
• Yellow:GRI REM SSE, non respondent
• Light blue:EnC members
• Dark blue:EnC observer countries
• Involvement sought from GRI REM SSE and EnC countries
• EASEE-Gas now to approach market participants in these countries
24
Benefits of participating in EASEE-Gas andFuture role of EASEE-GAS
• EASEE-Gas: A broad platform for structured CBP development and implementation monitoring (?)
• EASEE-Gas ideally suited to play the role of a multi-stakeholder platform involving all stakeholder within the natural gas value chain
• EASEE-GAS hence as the ideal vehicle for consultation: Strengths of the EASEE-gas consultation process
EASEE-GAS
ERGEG+
GTE+
3rd PackageInteraction needed
Success of the development of codes and standardswill crucially rely on the involvement of all stakeholdersnot just transmission system operators
Maribor,October 9, 2007
EASEE-gas
www.EASEE-gas.org
Maribor,October 9, 2007
A structured consultation process
Common Business PracticeRequest from stakeholder
Prioritised in line with Annual Plan
approved by the Board
Work Group announced to members by Executive Committee (ExCom)
Working Group developsCommon Business PracticeBalanced Voting
Each Segment has 2 votes irrespective of number of
participants in attendance or by phone.
Majority is over 50%Executive Committee
approves CBP for release to all members
Majority VotingEach ExCom Member votes
Majority is over 50%
Members comments receivedand Working Group modifies
CBP accordingly
Executive Committee approve CBP Balanced Voting
3 or more Full Members may appeal within 60 days
Full membership ratification
Each ExCom Member votesMajority is over 50% AND max of 1 vote against in each segment
General MeetingMajority is over 50%
CBP is approved
Maribor,October 9, 2007
Extensive industry consultation has taken place
Participating companies 37
Participating industry
organisations
6
Represented countries 14
21 meetings over a 3 year period
Only limited participation of large industrial end users
Technical advice received from Marcogaz
Gas Quality HarmonisationThe Approach
Maribor,October 9, 2007
The Gas Quality Harmonisation Common Business Practice