- Overview of Network Codes Jan Ingwersen ENTSOG ENTSOG Total - - PowerPoint PPT Presentation

UNECE Gas Centre Task Force on Gas Market and Regulation

• Overview of Network Codes

Brussels, December 2015 Jan Ingwersen ENTSOG

ENTSOG

Share of natural gas in EU energy mix: 23 %

Length of high- pressure pipeline network:

250,000 km

Total natural gas demand in Europe:

460 bcm

Direct employed staff:

50,000

• Pan-European Network Codes cross-border/market integration issues
• Pan-European Ten-Year Network Development Plan (‘TYNDP’)
• Regular gas supply/demand outlooks on the European market
• Develop common operational tools (CNOTs): network security and

reliability

• Providing information/data (Transparency Platform, maps)

ENTSOGs Tasks

Network Code development: 12 months

Preparatory work Project planning Prepare launch document

Interactive draft code development

Prepare final code ACER review Comitology

Consultation

4

Network Codes: Where we are now ?

2016 2014 2015 2017

CAM Balancing Inter-

• perability

Tariffs Incremental Capacity CMP/ Transparency

Implementation Firm day-ahead Use-It-or-Loose-It Implementation of most CMP-rules : October 2013

01.07.2016

Implementation

01.11.2015

Delayed Implementation End Implementation

01.10.2015 01.10.2016

Endorsement Implementation

Q1/Q2 2016 (estimate)

Development Endorsement Implementation

01.10.2017 (estimate)

Development Endorsement Implementation

01.10.2017 (estimate)

5

What will Network Codes achieve? (1)

6

What will Network Codes achieve? (2)

CAM

CAM – Status on Implementation & Platform Usage

• Usage of booking platforms and standard product range in early implementation has further

increased during 2015

*Germany (16% of consumptions) reported to implement BAL NC provisions by 1 Oct. 2015. In addition to the trading platform, Germany has one interim measure for balancing platform applying for 5 years in case the locational products needed are not sufficiently offered on the trading platform. ** Total consumption of 23 Member States (incl. Luxembourg) applying BAL NC.

3 Implemented by 16 April 2019 (8 Member States including Estonia) Implemented by 1 October 2015 including trading platform. Additional balancing platform in place. (1 Member State)* Implemented by 1 Oct 2016 (5 Member States) Implemented by 1 Oct. 2015 (10 Member States including LU)*

• Increase in interim measures compared to last year (9 respondents vs. 8 in 2014).
• 11 Member States (61.0% of total consumption [5,101,286 GWh/y]**) reported that BAL NC has been implemented by

1 Oct. 2015.*

• 16 countries (87.5% of total consumption [5,101,286 GWh/y]**) reported to implement the BAL NC by 1 Oct. 2016.*

BAL - Status on Implementation

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Tariff Network Code : Some Main Points

Binding tariffs Transmission and dedicated services definition Volume risk in high transit countries Transitional and mitigating measures Multi-TSO systems Network Code on Tariff Structures Publication requirements Benchmarking Tariff setting year Ex-post Non-physical backhaul Incremental Fixed tariffs Multiplier cap Cost allocation methodologies

10

Development of Resubmitted TAR NC

TAR NC resubmitted within expected timescales

31st July

Stakeholders

ACER EC

TAR NC submitted within prescribed timescales

26th December 2014

ACER Reasoned Opinion within prescribed timescales

26th March 2015

Comitology Phase 11

TAR NC Expected Timeline (December 2015)

ACER EC/MS

ENTSOG Amendments Phase

TAR WG

GA

20/10

BOA

1/10

ENTSOG

Pre-Comitology Phase

Madrid Forum 14-15 Oct

2015 2016 October June

2nd Comitology meeting (End June?)

(TBD)

27/10 17/11 8/12

GA

16/12

BOA

26/11

BOA

5/11

ACER Does Not Recommend Draft Informal MSs Meeting 20 Oct

GWG 8/10

ISC by EC: January-February 1st Comitology meeting (28-29 April)

BoR 13/10

Internal EC processes

Public information session 15 Dec

12/1 26/1 1/3 5/4 3/5

• r 10/5

31/5 28/6

BOA

10/2

BOA

14/1

BOA

17/3

BOA

20/4

BOA

19/5

BOA

16/6

GA

8/6

GA

6/4

GIE Conference 9-10 June EC-ACER-ENTSOG Trilateral Meetings to amend text Informal MSs meeting (10-11 March)

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Phases of the Network Codes Phase 2 Implementation Phase 3 Operation Phase 1 Development

Comitology ACER Opinion & Recommendation ENTSOG NC Draft ACER FG NRAs ensuring consistency with national rules

Entry-into- Force Date Application Date

Implementation of the Network Codes NCs being applied in practical

• peration
• 1. Monitoring by ACER & ENTSOG
• 2. Functionality: Process to check & ensure that the

NCs are working properly

Activities in the Phases of Network Codes

Step 1. Collect issues

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Functionality Process

• Establish & maintain bulletin board
• Collect and clarify the issues
• Status of issues on bulleting board

Step 2. Categorize issues

• Categorization:
• Focus on regional (between

several MS) and European (majority of MS) issues

• National (within one MS) issues to

be referred to national level

• High/ Medium/ Low priority
• Prioritised issues to responsible WG / TF

A/E Coordination Team + Stakeholders Step 3. Develop solutions

• Elaborate on possible solutions
• Conduct stakeholder workshops
• Identify preferred solutions
• Obtain ACER and ENTSOG approval

as well as stakeholder support

• Publish a recommendation

ACER/ENTSOG Coordination Team Respective WG (ENTSOG) + TF (ACER) + Stakeholders

Thank You for Your Attention

ENTSOG -- European Network of Transmission System Operators for Gas Avenue de Cortenbergh 100, B-1000 Brussels EML: WWW: www.entsog.eu Jan Ingwersen Business Area Manager - Market Jan.Ingwersen@entsog.eu