Gas European Network Code Implementation

May 2013

Lisa Martin

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• Ofgem open letter on Congestion Management Procedures (CMP) implementation. – Included question on impact of change in the Gas Day.

• Individual TSO process on CMP implementation:– NGG consults on Bacton/Moffatt - Ofgem approval– IUK consulting (published 30 April) on its I/C – Ofgem/CREG

approval– BBL consults on its I/C- Ofgem/ACM approval– Ireland still under discussion

What has happened so far?

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Summary of responses on change to Gas Day

• Very consistent tone of responses (non-confidential will be made available on Ofgem website).

• Avoid underestimating the scale of the task.• Preference for early consultation on how it will be implemented

and coordinated approach.• Preference for early decision on a fixed implementation date.• Recognition that change will be felt from offshore to customer

meter, with not all parties under Ofgem jurisdiction.

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CAM Requirements

• Implementation 1 November 2015• Capacity to be auctioned as bundled, standard products• Applies to interconnector points (Bacton & Moffat) – may also apply to

entry and exit points to and from third countries (subject to relevant NRA decision)

• Applies to capacity that is available to be sold & contracted capacity once it becomes available, e.g. – BBL – capacity that is currently unsold & any that becomes available

through Oversubscription or Surrender (CMP), further capacity from 2016

– IUK – Oversubscription or Surrender, all capacity from 2018– & to relevant capacity at Bacton & in Belgium & Netherlands– So stepwise approach to implementation

• Implementation needs to meet obligations of CAM• There are options for implementation

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Key Issues to be considered

GB issues Shared issues

Capacity identification e.g. how to calculate capacity at Bacton?

How to bundle capacity?

Should changes apply to all entry/exit points in GB or just interconnection points?

What booking platform to use (PRISMA ) & how this should be governed?

How do we go about changing the gas day?

Interaction between capacity/ allocation & nominations (within-day)?

Ensuring standardised capacity products are sold

TSO cooperation

Package approach at cross-border points - look at CAM, nominations in balancing, charging etc

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Process

Ofgem NGGCREG Fluxys

IUK

Working groups (GB/ Bel/ NL) ?

Ofgem NGGACM GTS

BBL

Shared issues Shared issues

GB issues

Need to consider with Irish NRAs- Moffat

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