Policy and regulatory framework: what are the next challenges to tackle?

Transcription

1 Policy and regulatory framework: what are the next challenges to tackle? Alberto Pototschnig Director GIE Annual Conference Venice, TITRE 23 May 2013

2 Achieving the Internal Gas Market by 2014 (and beyond) through Formal Framework Guidelines / Network Codes process FG/NC on Capacity Allocation Mechanisms FG/NC on Balancing Rules FG/NC on Interoperability FG/NC on Harmonised Transmission Tariff Structures Guidelines on Congestion Management Procedures Voluntary Coordinated Implementation of the Target Model Pilot Projects and Platform for the Early Implementation of CAM (coordinated allocation, through market-based mechanisms, of a common set of bundled capacity products) 2

3 Progress in NC Development Comitology Guidelines on Congestion Management Procedures FG/NC on Capacity Allocation Mechanisms (CAM) FG CG NC EV Comm. Decision (2012/490/EU) NC COMITOL. ( ) FG/NC on Gas Balancing in Transmission Systems FG NC EV COMITOL. FG/NC on Interoperability and Data Exchange Rules FG NC EV COMITOLOGY FG/NC on Harmonised Transmission Tariff Structures FG NC EV COMITOLOGY WS ACER ENTSOG EP - EC EV = Evaluation on NC

4 Overview of CMP obligations Oversubscription & buy-back scheme Firm day-ahead use-it-or-lose-it (UIOLI) ACER Monitoring (Report on Congestion) Implementation by 1 October 2013 Surrender of contracted capacity Implementation by 1 October 2013 Implementation by 1 July 2016 Long-term use-itor-lose-it (UIOLI) Implementation by 1 October 2013 Data provision (additions to Transparency GL) Scope CMP Guidelines apply at IPs between adjacent entry-exit systems Application to IPs with non-eu countries decided by the NRA 4

5 CMP implementation On-going work Coordination throughout EU for consistent implementation at IPs Cross-border coordination between TSOs and NRAs is on-going, including via Gas Regional Initiative (GRI) ACER on-going work: Identification of areas requiring cross-border coordination and/or harmonised decisions Identification of best practices and elaboration of recommendations The Guidelines require some decisions, including on: Capacity products and merit order of surrendered capacity Tariff issues Treatment of bundled/unbundled products Evaluation of impacts Risks and incentives, behaviour of network users Coordination with (early) implementation of CAM network code where relevant 5

6 NC CAM and the Gas Target Model» All market areas within the EU organised as entry-exit zones with virtual hubs» Simplified cross-border transport: bundled standard capacity products at IPs» Market based capacity allocation: Regular & harmonised auctions» Promotion of short-term capacity availability for hub-to-hub trading and higher flexibility of the gas sector to support RES-E penetration in the electricity sector» Establishment of a common gas day, Virtual IPs, common booking platform(s)» Developing liquid hubs is a central objective» TSO & NRA cooperation is key to implement the targets 6

7 Next steps for NC CAM 2013 Legislative Process Gas Committee: 15.4.: MS s vote Translations of NC 3 months for EP to adopt or reject Entry into force expected in 8/ Implementation Until 2/14: PC on common booking platform By 11/14: Joint method for dynamic IP capacity calculat. Early implement. of other NC rules still voluntary 2015 Application Formal start of NC application: By 9/15 (?) 1 st ACER report on bundling progress Potentially 1 st NC amendment 2016 Coming into effect 1 st obligatory auctions for annual products (3/16) and quarterly products (6/16) Deadline By 8/18: establish functional Virtual Interconnection Points NC implementation monitoring by ACER Early implementation already ongoing through pilot projects (e.g. PRISMA) facilitated by CAM Roadmap 7

8 CAM Roadmap PILOT PROJECTS Driven by voluntary initiatives established by TSOs, with support from NRAs PRISMA Bundled product at Lasów Bundled product and capacity platform HU/RO Annual capacity auction at the VIP SP/PT

9 Major milestone: PRISMA project New platform in operation since 1 April 2013 connecting major EU hubs 19 TSOs from 7 countries, other TSOs consider to join Already 250+ shippers registered Booking of primary capacity products in accordance with CAM NC Secondary capacity expected for 2014 Merging of existing capacity platforms, using benefits and collective experience from them

10 Challenges in early implementation Bundling: level of firmness of capacity; capacity availability Cost of IT platform(s): cost sharing between TSOs; recognition of efficiently incurred costs by NRAs Contracts: level of standardisation Convergence: NC CAM does not require only 1 single platform, but 23 rd MF invited to promote the convergence of projects to avoid duplication of costs

11 Key steps towards IEM 2014 Congestion Management Release of unused capacity by oversubscription & buy-back, UIOLI mechanisms Capacity allocation Auctions of bundled standard capacity products at IPs Gas Balancing Switch from TSO to marketbased balancing Daily cash-out Interoperability Removing bottlenecks for free gas flows: e.g. addressing common unit issue, odourisation, gas quality, interconnection agreements, data exchange Gas tariff structures Non-discriminatory, stimulus to x-border trade Harmonising cost allocation in e/e zones Enabling auctions introduction inter alia via harmonised revenue recovery harmonising setting of reserve prices

12 2014 and beyond: next challenges Potential FG/NCs: Rules for trading Security and reliability rules? Network connection rules? Settlement rules? Operational procedures in an emergency? Monitoring of NC implement ation NC preparation New FG Potential 1 st NC amendment: NC CAM incremental capacity Energy efficiency regarding gas networks? Transparency rules?

13 Thank you for your attention! Thank you for your attention