8 th Transparency Workshop – 11 December 2014 Development Process of the Network Code on Harmonised Transmission Tariff Structures for Gas Introduction: Process Update & Next Steps Malcolm Arthur Adviser, Market
Agenda Process Update Implementation Timescales Transparency Next Steps
Process Update 3
TAR NC Timeline draft PP consultation refined draft NC to SSP 19/12/13 - 20/01/14 07/11/14 - 21/11/14 consultation workshop SJWS 1 SJWS 3 SJWS 5 25/06/14 11/02/14 14/03/14 09/04/14 refinement WS SJWS 2 kick-off WS publish initial draft NC for SJWS 4 24/09/14 27/02/14 15/01/14 consultation 26/03/14 NC supported 30/05/14 by ENTSOG 17/12/14 Today January March May September November January PHASE 1: project plan & PHASE 2: PHASE 3: Start Finish launch NC development NC decision-making 30/11/13 31/12/14 documentation 01/02/14 - 31/07/14 01/08/14 - 31/12/14 development 30/11/13 - 31/01/14 LD Publication initial draft NC consultation NC supported by 22/01/14 30/05/14 - 30/07/14 stakeholders 21/11/14 PP Publication 31/01/14 ENTSOG submit NC and formal starting accompanying document date of NC process to ACER 01/01/14 31/12/14 4
Initial Draft TAR NC & Refined Draft TAR NC Documents for 2-month consultation (30 May – 30 Jul) Documents for Refined Draft Analysis of Stakeholder Support Process TAR NC Decisions (7 Nov – 21 Nov) 5
TAR NC for ACER Documents for Refined Draft Analysis of Stakeholder Support Process (7 Nov – 21 Nov) TAR NC Decisions Documents for Accompanying TAR NC handover to ACER Document (by 31 December) 6
Implementation Timescales 7
TAR NC: Implementation Timescale Oct ‘17 Jun ‘18 Jun ‘20 Jun ‘16 Jun ‘ 17 Jun ‘ 19 Transitional arrangements Mitigation measures 8
Transparency 9
Transparency Improved Transparency Consultation Information Consistency Methodology Tariff publication Same process used Dedicated services costs Trends across EU Tariff replication Allowed revenue 10
Next steps 11
Next Steps 7 November – 21 November Stakeholder Support process 31 December – deadline for ENTSOG to submit TAR NC to ACER 3 months – time for ACER to provide reasoned opinion to ENTSOG Next steps depend on ACER review TAR NC – implemented 24 months as from its entry into force 12
Thank You for Your Attention Malcolm Arthur Adviser, Market ENTSOG -- European Network of Transmission System Operators for Gas Avenue de Cortenbergh 100, B-1000 Brussels EML: Malcolm.Arthur@entsog.eu WWW: www.entsog.eu
8 th Transparency Workshop – 11 December 2014 Development Process of the Network Code on Harmonised Transmission Tariff Structures for Gas Transparency Requirements in the TAR NC Irina Oshchepkova Junior Adviser, Market
Agenda The TAR FG and the TAR NC Why / What / How / When To Publish Stakeholder Feedback and ENTSOG Consideration Next Steps and Additional Information
The TAR FG and the TAR NC 16
Requirements of Section 2 of the TAR FG 1. overall aims of publication requirements – ‘ why? ’ (Article 24) 2. general publication requirements, i.e. the list of ‘relevant input information necessary to calculate tariffs’ – ‘ what? ’ (Article 25.1) 3. task to ‘develop a standardised format for publishing [such] information (e.g. by integrating it into the EU‐wide ENTSO‐G Transparency platform)’ – ‘ how? ’ (Article 25.3 -4) 4. duration of the publication notice period – ‘ when? ’ (Article 27) This all + the stakeholder feedback (i.a. taken into account for Article 26 on additional transparency requirements) forms the basis for Chapter IV ‘Publication Requirements’ of the TAR NC 17
Why? 18
Objectives of publication requirements Network users are to be able to understand… …transmission tariffs and charges for dedicated services charged to specific network users and at specific entry or exit points corresponding to such services …how such transmission tariffs and such charges are …different types of set, have changed and may transmission services change and dedicated services 19
What? 20
Information required by the TAR FG Information indicated in white boxes is to be published 21
Information required by the TAR NC BLOCK 1 BLOCK 2 BLOCK 3 •TSO’s allowed/target revenue • Inputs for cost allocation • Transmission tariffs and charges for methodology dedicated services (a) allowed/target revenue + information related to changes in its (c) parameters of the primary cost (d) transmission tariffs level allocation methodology + (i) reserve prices for firm standard capacity information on the secondary products + formulas for calculation + (b) transmission services revenue + adjustment(s) + entry-exit split justification for multipliers and seasonal factors treatment of auction premium + (if not a parameter) (ii) reserve prices for interruptible standard capacity products + formulas for calculation information on reconciliation of (iii) commodity-based tariffs + relevant regulatory account Examples of parameters: information on derivation (iv) tariffs for alternative capacity products + RAB, capacity/commodity split, entry/exit split, relevant information on derivation (i) actually obtained revenue, under-/over- cross-border/domestic split, technical capacity, (v) prices at non-IPs + relevant information on recovery attributed to the regulatory account forecasted contracted capacity, structural derivation (ii) reconciliation period, incentive mechanisms representation of transmission network implemented, the applied mitigating measures (e) charges for dedicated services charged to specific network users and at specific points + relevant information on derivation 22
Transmission and Dedicated Services TRANSMISSION SERVICES DEDICATED SERVICES TRANSMISSION TARIFFS CHARGES FOR DEDICATED SERVICES 1. scope : more general, link to the definition of 1. scope : exclude only specific services, these are ‘other ‘transmission’ from Directive 2009/73/EC and Regulation than transmission services’ 715/2009: ‘transport of natural gas through a network, which mainly contains high-pressure pipelines, other than an upstream pipeline network and other than the part of high-pressure pipelines primarily used in the context of local distribution of natural gas, with a view to its delivery to customers, but not including supply’ 2. beneficiary of the service : all network users 2. beneficiary of the service : specific network users / infrastructure operators / at specific points 3. calculation : via cost allocation methodology 3. calculation : outside of cost allocation methodology 4. revenue reconciliation : one pot for transmission services 4. revenue reconciliation : not to be mixed with one pot 5. transparency : parameters of cost allocation 5. transparency : charges for specific network users and at methodology, associated part of the allowed/target specific points + information on their derivation revenue, under-/over-recovery and related information on reconciliation of the regulatory account, resulting tariffs 6. additional burden : avoiding cross-subsidies between network users, taking account of the objectives of security of supply and fulfilment of goals for renewables Note also the link with ‘regulated services’ as well as the requirements on consultation and NRA approval 23
How? 24
Standardised Format standardised publication in ‘standardised format a certain table’ (Article 26, ‘manner’ (para 3) para 3-4) (para 4) • via Transparency Platform irrespective of • TSO’s allowed/target cost allocation revenue methodology • accessible to public, free of charge on the • parameters of primary cost • in a user-friendly manner dependent on website allocation methodology cost allocation of TSO or • information on secondary • in a clear, quantifiable, NRA , as methodology adjustments easily accessible way and relevant on a non-discriminatory basis • transmission tariffs irrespective of cost allocation • charges for some dedicated • in the official language(s) of methodology services the MS and in English 25
How a Standardised Table May Look Like The link could be put here These are the examples that ENTSOG presented at the public meetings 26
Evolution of Approach Refined Draft SJWS 4 TAR NC (26 Mar) • split the table (7 Nov) into 2 parts: • indicated high- (1) parameters level example of the primary of a cost allocation standardised methodology; table (2) the rest of • idea about the information ‘general • deleted the template’ and necessity to Initial Draft SJWS 2 ‘customised split the table into 2 parts templates’ TAR NC (27 Feb) (30 May) 27
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