Joint E oint Eur uropean opean Stak Stakeholder Gr eholder - - PowerPoint PPT Presentation

Joint E

• int Eur

uropean

• pean

Stak Stakeholder Gr eholder Group

• up

Thursday 18 June 2015: Meeting 4

• 1. Introductions and Apologies

Barbara Vest JESG Independent Chair

• 2. Review

view of

• f Action

Action Log Log

Sara-Lee Kenney JESG Technical Secretary

JESG Standing Actions

ID Topic Lead Party Source

S1 Continue to review the membership of the JESG and engage additional industry parties where appropriate. JESG Chair JESG S3 S2 Prepare a commentary / comparison document between the Network Code and the existing GB arrangements at appropriate stages in the Code development for each Network Code. NGET/Ofgem/DECC JESG S1 S3 Share any intelligence about how other member states are approaching demonstrating compliance through information gained from other government departments, regulators or parent companies DECC / Ofgem / Industry parties with European parent companies ECCAF 3/2 S4 Stakeholders are requested to provide specific examples of inconsistent or problematic definitions in the Network Codes to Ofgem (natasha.z.smith@ofgem.gov.uk) and DECC (elena.mylona@decc.gsi.gov.uk). All Stakeholders JESG S6

JESG Open Actions

ID Topic Lead Party Update

4 DECC to update JESG on how GB TSO voting will work under CACM and what information will be published with regards to voting. DECC To be covered under Agenda Item 4 11 Open letter to stakeholders on the HVDC and DCC implementation approach, also through JESG Weekly Update. DECC/Ofgem/ JESG Chair Update to be provided at June JESG

• 3. Sum

Summar mary y Sta Status of tus of Eur European

• pean

Netw Networ

• rk

k Codes Codes

Plus DECC/Ofgem Updates on;

• 4-5 June Florence Forum
• Cross-Border Committee - Latest development and next

steps

• Status of ACER’s Recommendation – Balancing Network

Code

Joint Eur

• int European S
• pean Stak

takeholder Gr eholder Group

• up

European Electricity Codes Development Status: 18 June 2015

6 months EC programm e 12 months 3 months See note † 18 months – 3+ years depending on Code

Member State Implementation ENTSO-E develops Network Code ACER recommends Network Code to EC ACER reviews Network Code Revisions to Code after Opinion ACER develops FWGL EC invites ENTSO-E to develop NC

Publication in OJEU

ACER revises

• pinion

Implemented E&R Preparation for Cross-Border Committee Cross-Border-Committee Discussion and Voting Council & Parliament Approval Balancing Comitology Reg 543/2013 Transparency Connection Procedures Staff Training and Certification Tariffs

† Timescales for the stages of Comitology are not specified and under the Commission’s control †† Current indications from the Commission is that OS, OPS and LFCR will be merged in to one single guideline All queries to: europeancodes.electricity@nationalgrid.com

Potential Future ENCs:

indicated as future ENCs, no timescales advised to date

• 4. GB TS

GB TSO V O Voting under the

• ting under the CA

CACM CM Guideli Guideline Upda ne Update te (JE (JESG Action SG Action 4) 4)

DECC

Allocating the UK vote among TSOs

Jon Robinson, DECC, June 2015

• Ofgem has finished consulting on its minded to decision around the

allocation of responsibilities under CACM to GB TSOs, the UR and CER consultation for the SEM is about to end.

• Member States have to allocate the single UK vote among the TSOs

responsible for each decision.

• CACM sets out requirements for consultation and regulatory approval -

this processes is about formal decision-making by responsible parties.

• DECC and DETINI are considering options and will bring forward

proposals for consultation.

• Those proposals are likely to set out a methodology to determine the

use of the single UK vote which can be applied by those TSOs required to be involved in decisions.

• This discussion is intended to be an opportunity for JESG members to

express views on the issues to be considered in developing that methodology for DECC and DETINI to take on board when developing proposals.

Discussion points

• Representative - different sets of TSOs have responsibility for

different decisions under CACM. To what extent is an equal share

• f the vote for each responsible TSO an important factor?
• Proportionate– the TSOs involved in decisions may be of very

different sizes or with different responsibilities. To what extent is it important to recognise these differences through the shares of the vote?

• Clear outcomes– some methods would always produce a clear

answer, others might, under some circumstances, not. To what extent would a decisive answer be important?

• Resolution mechanism - if a decisive answer was not reached in a

particular circumstance, what could be appropriate mechanisms to resolve

• Transparency - at the last JESG discussion transparent voting – with

the individual votes recorded and published – was requested. What would be the right forum for presenting this information?

• Other considerations – what more should we be taking into

account?

• 5. Implementing CACM: Update

from JESG mapping workshop & call for stakeholder comments

Ofgem

Implementing CACM – update following JESG mapping workshop and call for stakeholder comments

Ofgem 18/06/15

13

Implementing ENCs in GB

Responsibilities

DECC will make legislative changes where there is no alternative Ofgem will change licences and require changes to access rules and charging methodologies Industry code changes will be coordinated by relevant industry parties and the timely delivery overseen by code panels Stakeholders should use the opportunities provided to engage in the process Implementing ENCs will require changes to the GB framework Changes will need to go through existing processes. The suite of change will need to be coordinated. As set out in our open letter 18 December 2014, multiple parties have a role to play in this

14

Scope:

• These slides capture our initial thinking of the initial GB framework changes to implement CACM.
• Once CACM becomes law we expect all responsible parties to identify which changes are

required and take them forward using existing processes to ensure full and timely compliance with CACM. Approach:

• Changes may be necessary for one, two or all of the below reasons:

Mapping CACM to the GB framework

1) A CACM article that is not sufficiently clear / precise requires clarification / interpretation 2) A CACM article or methodology requires the removal of an inconsistency in the GB framework 3) A change in the GB framework is necessary to enable the requirements

• f the Regulation to be met / provide Ofgem with enforcement powers

15

• We tested our analysis with stakeholders 19 February.
• The results of the workshop were circulated to the JESG mailing list 20 March 2015 for further

consideration and comment.

• We received 1 informal response.

JESG mapping workshop 19 February 2014

16

Summary:

• Implementing CACM is an iterative processes consisting of 3 waves that will each happen at

different points in time.

• Changes are likely to be associated with each wave.
• The analysis will need to be reviewed at each stage.

The CACM timeline

1) Allocate responsibilities

Changes relating to definitions, roles, responsibilities and monitoring

2) Develop and approve

methodologies Engage in the development, consultation, approval of terms, conditions and methodologies

3) Consequential changes

Review the need for changes linked to approved terms, conditions and methodologies

Initial Tasks Watching Brief No immediate action

17

Wave 1 (3-12 months from entry into force)

• Determining roles and responsibilities, definitions and

monitoring:

• Ofgem –assign TSO responsibilities, designate NEMOs
• DECC –implement regulatory framework for NEMOs

through legislative change, allocate TSO and NEMO voting rights

• All stakeholders including Ofgem, DECC and Industry Code

Panels etc.) – review definitions to ensure there are no inconsistencies between the GB framework and CACM

• ACER and ENTSO-E develop a monitoring plan – we

encourage all stakeholders to input into the type and format

• f the data required from market participants.

Initial analysis (1)

1) Allocate responsibilities Changes relating to definitions, roles, responsibilities and monitoring Wave 1 (Initial Tasks)

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Wave 2 (9 – 30 months from entry into force)

• Wave 2 relates to the development, consultation and

approval of terms, conditions and methodologies by TSOs and NEMOs respectively.

• We expect parties developing methodologies, terms and

conditions to keep industry informed of progress and timings via JESG and populating our shared common plan.

Initial analysis (2)

2) Develop and approve methodologies Engage in the development, consultation, approval of terms, conditions and methodologies Wave 2 (Watching Brief)

19

Wave 3

• Wave 3 are consequential changes relating to approved

terms conditions and methodologies.

• No immediate action is required on these articles.
• Relevant code panels and industry will need to assess

whether a change to the GB framework is necessary during development.

• We expect parties to use JESG to share, coordinate and

discuss proposals.

Initial analysis summary (3)

3) Consequential changes Review the need for changes linked to approved terms, conditions and methodologies Wave 3 (No Immediate Action)

20

Before CACM becomes law:

• DECC and Ofgem facilitated timely sharing of information on critical first tasks between TSOs

and Power Exchanges through CACM Implementation Group as well as wider industry through JESG.

• We have shared indicative timelines with JESG in the form of a common project plan.

When CACM becomes law:

• CACM takes precedence over existing GB arrangements.
• All parties will need to fulfil their obligations.
• Ofgem has a duty to ensure parties comply with their obligations under CACM.
• We are also required to approve terms, conditions and methodologies.
• Ofgem will publish a final decision on assignment of TSO responsibilities. We will also complete

the initial NEMO designation process within 4 months of entry into force.

• We expect parties developing the proposals to keep industry informed of progress and timings

through JESG and populating the CACM project plan.

Ensuring full and timely compliance with CACM

21

Ofgem contact details

natasha.z.smith@Ofgem.gov.uk

Questions?

• 6. CACM Stakeholder

Engagement: A 6 month forward view

Bec Thornton (NGET)

June 2015: CACM Stakeholder Engagement Plan

Activity

Jun

Capacity Calculation Region JESG Meetings

Jul Aug Sept Oct Nov Dec Jan Feb 2015

ENTSO-E Consultation Potential DECC Consultation on TSO Voting TSO Submission of CCRs to NRAs 18/6 Ofgem Publish Final Decision

2016

Generation and Load Data methodology Common Grid Model Methodology All TSOs NEMO Designation

ENTSO-E Consultation ENTSO-E Consultation 29/7 26/8 29/9 20/10 17/11 2/12 European GB NB: All Timescales subject to change

Agenda Items

CACM Framework Mapping

Ofgem Consultation on draft decision Ofgem Publish decision on TSO Responsibilities

• 7. All TSOs and OFT

All TSOs and OFTOs consult Os consultation tion under CA under CACM CM

Ofgem

• 8. Tarif

ariff Har Harmonisa monisation tion

Ofgem

• 9. Ex

Exchange hange of

• f views on pr

views on practical actical aspe aspects cts of

• f GB imp

GB implement lementation of tion of the EU netw the EU networ

• rk

k codes/ codes/ guidelines guidelines

Marta Krajewska (Energy UK)

• 10. Futur

Future e Meeting Da Meeting Dates tes

Sara-Lee Kenney JESG Technical Secretary

Forthcoming Meetings: ENTSO-E

For information: Registration has now closed. TYNDP 2016 Public Workshop: 24 June 2015 Gathering of stakeholder views on Regional Investment Plans and the Ten Year Network Development Plan (TYNDP) 2016 candidate projects. Launch Event -The Energy Union Ahead!: 24 June 2015 ENTSO-E’s presents their vision on the Energy Union. Source: www.entsoe.eu/news-events/events

Forthcoming Meetings: ACER

Thursday 9 July: ACERs IV Annual Conference - An Energy Union for Consumers

Brdo Congress Centre near Kranj, Slovenia. Registration is required and closes Monday 29 June.

Source: http://www.acer.europa.eu/Events/

Forthcoming Meetings: JESG

JESG Meetings: Wednesday 29 July 2015 - London Wednesday 26 August 2015 - Edinburgh

2015 Meeting dates can be found on the JESG Website. Registration is required and will be opened through the JESG Weekly updates.

Balancing Stakeholder Focus Group (BSFG) Next Meeting: Wednesday 15 July PM – Elexon, London

To register please email europeancodes.electricity@nationalgrid.com by Friday 10 July.

europeancodes.electricity@nationalgrid.com

Forthcoming Meetings: Other

BSC Issue Group ‘Group Project TERRE’: July 2015

Dates currently being finalised, please email Claire Kerr (Elexon) bsc.change@elexon.co.uk to register your interest

Energy UK Industry Workshop- Understanding the European Network Codes: 22 June 2015

10:30-15:30 at Scottish Power's Office, Executive Boardroom, Cathcart Business Park, Spean Street, Glasgow G44 4BE. This event is free of charge however registration is required.

• 11. Futur

Future e JESG Agenda JESG Agenda Items Items

Sara-Lee Kenney JESG Technical Secretary

Future Agenda Items: JESG

We’ve developed some considerations for future JESG agenda items and welcome your

• comments. Please note: These are not final and may be subject to change and additions

July:

• NEMO Designation
• Operational/Balancing Update
• ACER Opinion on Emergency &

Restoration Network Code

• Potential GB TSO Voting Update
• Capacity Calculation Regions (CCR)

Consultation Update

• ENTSO-E groups & Stakeholder routes to

input August: Edinburgh

• General European Network Code

(ENC)Update and Progress since last August

• Connection Codes Update
• Operational/Balancing Update
• Potential Forward Allocation Capacity

(FCA) update/discussion

• Future ‘new’ ENCs on the horizon

• 12. Review of

view of Stak Stakeholder eholder Repr epresenta esentation tion

Barbara Vest JESG Independent Chair

• 13. Any Other Busine

Any Other Business ss

All

A.O A.O.B: .B: New JESG R New JESG Registr gistration T tion Tool

• ol

Sara-Lee Kenney JESG Technical Secretary

New JESG Registration Tool

Benefits include:

• Quick and easy registration
• Visibility of how many spaces are

available and when registration closes

• Instant confirmation your have been

registered

• Option to include the invite in your

Outlook calendar

• Cancel your space if you’re unable to

attend

• Full location details and reminders

Effective from July, there will be a new way of registering for the JESG. Registration will still be

• pened through the JESG Weekly Updates however you will no longer be required to email your

attendance request but instead follow the link to the JESG page on ‘Eventbrite’ to register your attendance.

Lunc Lunch: 12:30 h: 12:30