Workgroup 0493: EU Gas Balancing Code - Daily Nominations at Interconnection Points (IP)

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Workgroup 0493: EU Gas Balancing Code - Daily Nominations at Interconnection Points (IP)

Phil Lucas

1st May 2014

Background

EU Balancing Code implementation required by October 2015

Nominations process: timescales and rejections, etc.

NG are not currently exercising the option to approach our NRA for a 12 month extension

EU CAM Code implementation required by November 2015

‘Single nomination’ process for bundled capacity

EU Interoperability Code in ‘comitology’ – it was expected that implementation would be required for October 2015

Nominations matching process

Data exchange

2

Framework for IP Nominations

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EU Balancing Code

EU Capacity Allocation

Mechanism (CAM)

EU Interoperability

Code Code

ENTSOG Business Requirements Specification (BRS) for Nominations

EASEE-gas Edig@s Message Implementation Guidelines (Nominations and Matching Process)

Solution

1. New terms

2. Application

3. Nominations and Renominations – General

4. Processing of Nominations

5. Processing of Re-nominations

6. Rejection and Revision of Nominations and Renominations

7. Physical or Locational Trades at IPs

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1. New Terms; and 2. Application

Additional terms required in new Nomination process

Rules apply in respect of each System Entry Point and Connected System Exit Point at an Interconnection Point (as now)

Transitional requirements in September 2015

For gas days up to and including 30th September 2015 – existing process

For gas days 1st October 2015 onwards – new process

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3. Nominations and Renominations General

‘Single Sided’ and ‘Double Sided’ nominations

Communications (User to Transporter)

Acknowledgment

Quantity types – ‘Processed’ and ‘Confirmed’

Multiple nominations per User per Day

Initiating Transporter and Matching Transporter role

Matching rule publication

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Nominations at IPs Examples

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Example 1

User A DSN 20 kWh > < DSN 20 kWh User B

Example 2

User A DSN 5 kWh > < DSN 5 kWh User B

User A DSN 15 kWh > < DSN 15 kWh User C

Example 3

User A SSN 20 kWh > < SSN 20kWh User A

Example 4

User A SSN 20 kWh > < SSN 20kWh User AUser A DSN 15 kWh > < DSN 15 kWh User BUser A DSN 10 kWh > < DSN 10 kWh User C

UK Transporter

adjacent Transporter

IP

UK Transporter


IP

IP

UK Transporter


IP

UK Transporter


4. Processing of Nominations

Submission window: D-30 to D-1 (13:00)

Default Nomination Rule – Nominated Quantity deemed to be zero in absence of User Nomination

Mandatory information requirements

Determination of Processed Quantity by NG

Notification of Confirmed Quantity: by D-1 (15:00)

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5. Processing of Renominations

Submission window: D-1 (15:00) to D (02:00)

Negative Implied Flow rate validation

Daily nomination must not exceed the volume deemed to have already flowed at effective time of flow rate change

Mandatory information requirements

Determination of Processed Quantity by NG

Notification of Confirmed Quantity – by Hour Bar + 120 minutes

Effective time of flow rate change – Hour Bar + 120 minutes

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Single Side Nomination Processing

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User TSO1 (Initiating) TSO2 (Matching) User

NominationReceive Nomination

(by 13:00 / HB)

Forward Nomination(by 13:15 / HB+15)

Receive Nomination

Send TSO1 Processed Quantity(by 13:45 / HB+45)

Receive TSO1 Processed Quantity and determine TSO2

Processed Quantity

Undertake Matching process

Receive TSO2 Processed Quantity and Confirmed

Quantity

Send TSO2 Processed Quantity and Confirmed Quantity

(by 14:30 / HB+90)

Receive Confirmed QuantitySend Confirmed Quantity

(by 15:00 / HB+120)Send Confirmed Quantity

(by 15:00 / HB+120)Receive Confirmed Quantity

IP

Double Sided Nomination Processing

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User TSO1 (Initiating) TSO2 (Matching) User

NominationReceive Nomination

(by 13:00 / HB)Receive Nomination

(by 13:00 / HB)Nomination

Send TSO1 Processed Quantity(by 13:45 / HB+45)

Receive TSO1 Processed Quantity and determine TSO2

Processed Quantity

Undertake Matching process

Receive TSO2 Processed Quantity and Confirmed

Quantity

Send TSO2 Processed Quantity and Confirmed Quantity

(by 14:30 / HB+90)

Receive Confirmed QuantitySend Confirmed Quantity

(by 15:00 / HB+120)Send Confirmed Quantity

(by 15:00 / HB+120)Receive Confirmed Quantity

IP

6. (A) Rejection

National Grid NTS may reject Nominations or Renominations:

Absence of mandatory information

Not submitted by User or its User Agent

In a Transportation Constraint, nominations above capacity entitlement

Negative value or Negative Implied Flow rate

Absence of a Double Sided Nomination to match against

Absence of matching information from Adjacent Transporter

Timing and consequence –

User notified within 120 minutes of Hour Bar

Prevailing Confirmed Quantity applies

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6. (B) Revision

National Grid NTS may revise Processed Quantity:

In a National Grid NTS Transportation Constraint / Emergency

To match capacity entitlement

To a value deemed appropriate (Emergency only)

In the case of multiple Confirmed Quantities, the revisions will pro-rated

National Grid NTS may revise Confirmed Quantity:

Where the Adjacent Transporter has revised its Processed Quantity

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7. Physical or Locational Trades at IPs

Confirmation lead time – Hour Bar +120 minutes

Opportunity for User to provide Renomination/s up to next Hour Bar

In absence of such Renomination/s, National Grid NTS will revise the previously determined Processed Quantity

In the case of multiple Confirmed Quantities, the revisions will pro-rated

User may subsequently revise subject to availability of Renomination process

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Regime Comparison

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Current Arrangements at Interconnection Points Prospective Arrangements at Interconnection Points

One type of Nomination / Renomination ‘Single Sided’ and ‘Double Sided’ Nominations and Renominations

No details of User’s counterparty at IP required Details of User’s counterparty at IP required

One Nomination per System Entry Point or Connected

System Exit Point at the IP per User

One or more Nominations per System Entry Point or Connected System Exit Point

at the IP, depending on the types of nomination used and the number of

counterparties per User

No NG NTS interaction with Adjacent Transporters at IPs NG NTS interaction with adjacent TSOs at IPs to undertake Nomination ‘matching’

process. Specification of an Initiating and Matching Transporter role.

Nomination submission period:

D-30 to D-1 13:00 (DM Output)

D-30 to D-1 14:30 (Input)

Nomination submission period:

D-30 to D-1 13:00. Note that the adjacent Transporters may not offer the same

earliest submission time.

Renomination submission period:

15:00 D-1 to 03:00 D

Renomination submission period:

15:00 D-1 to three hours prior to the end of the Gas Day

Typically 1 hour processing time Processing time up to 2 hours

Communications as per UK Link Manual / Gemini Communications as per Edig@s file formats or equivalent data format developed

by ENTSOG

Limited ability to reject a nomination (e.g. validation

failure). Application of Overrun Charges for nominations

in excess of capacity entitlement.

Additional reasons for Transporter to amend or reject a nomination. Application

of Overrun Charges for nominations in excess of capacity entitlement

Working Towards 1 October 2015

NG discussions with adjacent TSOs to agree nominations framework principles and implementation date/s - Q4 2013 onwards

The Nomination information required in the Interconnection Agreements (IA) will be included with the other EU code IA changes

NG discussions with adjacent TSOs may lead to variations to Mod 493

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Next steps

What topics do stakeholders want NG to cover at the next Workgroup on the 22nd May?

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Appendix

Matching Examples

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Example 1 – “Easy” match (Double Sided Nom)

National Grid Transmission Network Adjacent Transporter's Transmission Network

User A Charges20 Capacity, 18 Commodity, 0 Overrun

User B ChargesAs per Adjacent Transporter arrangements

Interconnection Point

User A Nomination18

User A NTS Exit Capacity Entitlement20 (Unbundled)

Confirmed Quantity (to User B)18

Confirmed Quantity (to User A)18

User B Nomination18

20 (Unbundled)

18Processed Quantity MATCH

User B Entry Capacity Entitlement

Processed Quantity 18

Example 2 – “Easy” match (Single Sided Nom)

National Grid Transmission Network Adjacent Transporter's Transmission Network(In this example, the Initiating Transporter) (In this example, the Matching Transporter)

20 Capacity, 18 Commodity, 0 Overrun As per Adjacent Transporter arrangements

Forwarded by National Grid

Confirmed Quantity (to User A) Confirmed Quantity (to User B)18 18

User A Charges User A Charges

20 (Bundled) 20 (Bundled)

Processed Quantity MATCH Processed Quantity 18 18

User A NTS Exit Capacity Entitlement User A Entry Capacity Entitlement


User A Nomination User A Nomination (forwarded)18 18

Example 3 – “Easy” match (Multiple Double Sided Nom)


* one single Capacity Charge levied for 20 units, one single Commodity Charge levied for 20 units

15 Capacity*, 15 Commodity*, 0 Overrun As per Adjacent Transporter arrangements

Confirmed Quantity (to User A) Confirmed Quantity (to User C)15 15

User A Charges User C Charges

User A NTS Exit Capacity Entitlement User C Entry Capacity Entitlement20 (Unbundled) 15 (Unbundled)


5 Capacity*, 5 Commodity*, 0 Overrun As per Adjacent Transporter arrangements

User A Nomination 2 User C Nomination15 15


User A Charges User B Charges

20 (Unbundled) 5 (Unbundled)


User A NTS Exit Capacity Entitlement User B Entry Capacity Entitlement


User A Nomination 1 User B Nomination5 5

Example 3 – Lesser Rule (Double Sided Nom)


Rule' applies as shown here.




Matching rule applied as specified

If none specified, default 'Lesser in Interconnection Agreement.



Processed Quantity NO MATCH Processed Quantity 18 15


User A Nomination User B Nomination18 15

Example 4 – Overrun (Double Sided Nom)









User A Nomination User B Nomination25 25

Documents

Workgroup 0493: EU Gas Balancing Code - Daily Nominations at Interconnection Points (IP)