Download ppt - 1 ERGEG Regional Initiative Region South-South East 4th Stakeholder Group meeting Italian Balancing Point TF How to create regional markets for balancing

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ERGEG Regional Initiative Region South-South East

4th Stakeholder Group meeting

Italian Balancing Point TF

How to create regional markets for balancing in practice

Athens 10 June 2008

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The development of hub as Balancing points has been identified by ERGEG as one of the “KEY objective” of the SSE Regional Initiative

The IBP TF recognized that implementation of a balancing market would positively impact the functioning of the overall gas market

The balancing market mechanism contributes to improve the liquidity of the hub and the trading of gas


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Create regional markets for balancing in practice

The TF point of view

In principle the balancing point should have a regional extention

In practice however the SSE regional market lacks: - an harmonized business environment - a well meshed gas grid- adequate available interconnection capacities

Two/three balancing points in the SSE region is a more realistic objective

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Create regional markets for balancing in practice

The TF point of view

As a first step develop two/three hubs in the region acting as balancing points for their reference area.

In the longer term the local balancing

points could evolve to a regional dimension.

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Focus on the Italian Balancing PointThe IBP Activity

Workshop with the Italian Association of Energy Traders (Aiget) November 2007

Meeting with the Regulatory Authority - December 2007

- March 2008

Meeting with the Italian Transmission Operator (SRG) - January 2008

Meetings with the main Network Users

A balancing point for the Italian gas marketIBP TF Preferred features

Daily balancing mechanism: higher guarantee for operators with small portfolio; easier to manage

Independent Market Operator Anonymous exchanges Clearing price published ex-post Tolerance level: fixed or decreasing with the amount of

demand Ex-post trading: as long as the market is not well-functioning

and liquid Back-up back-down services provided by the market

Italian Balancing Point

Scambi su piattaforme

relativi a Giorno G


relativi a Giorno G


relativi a Giorno G

Giorno Gas G – 1

h. 12registrazione accordi PSVx Giorno G

h. 13comunicazione progr

trasporto e stock Giorno G

Giorno Gas G Settlement (15 m+1)

Prezzo Medio IBP

Pay as Bid

h. 18

Pubblicazione Scambi + Esiti IBP-intraday Market

h. 12

Posizione Shipper

DeterminazioneCorrispettivi

Sbilanciamento

Bilancio CommercialeDefinitivo

Fatturazionesbilanciamenti

Bilancio CommercialeProvvisorio

Recupero costi TSO

• Ex post Trading

•Tolerance Level

•…

fino alle h. 18offerte Acquisto/Vendita

su IBP-intraday MKT

AltraWeb, SAMPEI, Polaris…

NDM (°)

Non Daily Metered

DM

Daily Metered

Bilanciamento a Stoccaggio (*)/IBP

Nuove posizioni Shipper su IBP

ACQ/VEN

INTRADAY MARKET

• Consentiti scambi tra operatori

• …

Note

(°) Eventualmente aggregati per profilo di prelievo [da verificare a quale livello territoriale aggregabili: nazionale, area di prelievo, cabina…]

(*) In alternativa è possibile prevedere l’applicazione di corrispettivi di sbilanciamento differenziati, meno “severi” per gli NDM

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April 2008 First Consultation Document on “Potential Evolution of the Balancing Service in the Natural Gas Market” (DCO 10/08)

Main topics proposed for discussion: - Length of the Relevant Period - Balancing responsibility- Balancing Market Operation- Imbalance Charges

Next steps: Consultation Document on a Gas Exchange Second Consultation Document on the Gas Balancing

Market

Focus on the Italian Balancing PointConcret Developments

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Consultation Document on the Italian Balancing Market

Topics under discussion

Recommendation: “It is important that network users are not exposed to undue risks that they cannot manage effectively and/or without incurring inefficient costs that could create barriers to entry to the market” (GGPGB 1.9)

Length of the Relevant Period

Choice of daily or hourly period taking into account: Availability of info or of hedging possibilities on

shippers imbalance position over the relevant period Possibility for gradual implementation of hourly

balancing limited to main inputs and offtakes Harmonisation at international level needed

The Cons Doc suggests the need for a C-B analysis

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Balancing Responsibility

Snam Rete Gas responsible for dispatching and residual gas balancing – buys gas from market

Centralised platform for gas balancing offers Independent Balancing Market Operator (open)

Imbalance charges

Cost ReflectivePromote shippers efficent behaviour

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Recommendation: “In the absence of a well functioning/liquid within day market, allowing market participants to manage their imbalance positions efficiently, the TSO should have or should allow systems to be put in place to facilitate the pooling and trading of imbalance positions.” (GGPGB 1.18)

Operation of the Balancing Market

Shipper offer “balancing gas” (day a-head)Criteria for selection of offersPrice for selected offers

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Create two-three active balancing points in the south-south east region

Given the present actual possibilities for short term gas trading, the points should be based on compatible balancing regimes (fully harmonised in perspective)

Attention should be paid that regimes evolves with increasing short term trading possibilities

The proposal for the Italian Balancing Market is in line with the above requirements