Transcript Title of presentation

Capacity Allocation and
Congestion Management
Monitoring results & proposal
for new measures
Stefanie Neveling (BNetzA)
Benoît Esnault (CRE)
Madrid Forum, 29 May 2009
Monitoring Results
ERGEG Principles
Public Consultation
XVI Madrid Forum, 29 May 2009
2
Early Monitoring
Art. 5 & 8 Implementation
•
Monitoring on basis of questionnaire to NRAs 2008,
update May 2009
Crossing borders is often difficult for shippers
•
Capacity fully booked in the long term mostly by incumbents
•
Different legal frameworks appear to be an obstacle
•
Lack of cooperation between TSOs in capacity calculation
Inconsistencies hamper TPA
•
Different allocation mechanisms: First come first served,
pro-rata, auctions
•
Short term capacity products mandatory in some countries
•
Different designs for interruptible capacity
•
Different nomination procedures
•
Implementation of congestion management procedures insufficient
XVI Madrid Forum, 29 May 2009
3
Example 1:
Contractual Congestion
der HAG
Auslastung
Historische
Fully booked
point
which
is pipeline
physically underutilised
Kapazität gebucht
XVI Madrid Forum,
29 May 2009
Kapazität genutzt
Designkapazität
Jan 2009
2008
Nov 2008
Sep 2008
Jul 2008
Mai 2008
Mrz 2008
Jan 2008
Nov 2007
Sep 2007
2007
Jul 2007
Mai 2007
Mrz 2007
Jan 2007
Nov 2006
Sep 2006
Jul 2006
Mai 2006
2006
Mrz 2006
Jan 2006
Nov 2005
Sep 2005
Jul 2005
Mai 2005
HAG
4
XVI Madrid Forum, 29 May 2009
0
.000
0
.000
0
.000
0
.000
0
.000
0
.000
0
.000
0
.000
0
.000
.000
0
01.10.2007
.2007
Okt Nov Dez Jan Feb Mär Apr Mai Jun Jul Aug Sep
29.10.2007
HAG
18.08.2008
04.08.2008
21.07.2008
07.07.2008
23.06.2008
09.06.2008
26.05.2008
12.05.2008
.2008
.2008
28.04.2008
.2008
14.04.2008
.2008
.2008
31.03.2008
.2008
.2008
17.03.2008
.2008
03.03.2008
.2008
.2008
18.02.2008
.2008
.2008
04.02.2008
.2008
21.01.2008
.2008
.2008
07.01.2008
.2008
.2008
24.12.2007
.2008
10.12.2007
.2008
.2008
26.11.2007
.2007
.2007
12.11.2007
.2007
0
.2007
.2007
15.10.2007
.2007
Example 2:
Contractual Congestion
Entry Emden EPT1 der Gasunie anhand veröffentlichter Werte
Fully booked point which is physically underutilised
0
Entry Emden EPT1 der Gasunie anhand veröffentlichter Werte
Emden
5
Monitoring Results
ERGEG Principles
Public Consultation / Way Forward
XVI Madrid Forum, 29 May 2009
6
CAM & CMP: A Priority
for European Regulators
Two main objectives
• Propose amendments to the existing Guidelines annexed to the
Regulation:
•
Possible comitology procedure on general issues
• Prepare the implementation of the 3rd Package:
•
input to the Framework Guidelines
Underlying principles
• Pragmatism and harmonisation: Comprehensive European
approach while coping with various national situations: toolbox
• Security of access to capacity, visibility and flexibility
XVI Madrid Forum, 29 May 2009
7
CAM & CMP
Proposals
Scope of proposals
•
Apply to cross-border points and points connecting balancing
zones only
•
Apply to congested or potentially congested points. Do not apply to
storage and LNG facilities or to exit points to end consumers
•
Some detailed proposals are optional and shall be applied by virtue
of NRA decision only
Overview of proposals
•
Increase of available capacity and enhanced compatibility of products
and procedures
•
Offer of capacity products adapted to shippers’ needs and improved
allocation procedures
•
Reduction of transaction efforts
•
Improved congestion management
XVI Madrid Forum, 29 May 2009
8
Increase of Available
Capacity
Co-operation of adjacent TSOs in order to increase available capacity
Dynamic calculation of available capacity
Over-subscription and capacity buy-back
• TSOs offer specified amount of capacity above the calculated
technical capacity
• In case of physical congestion TSOs buy back capacity
Procurement of physical energy
• TSOs procure gas to physically balance the system and to
overcome congested situations
XVI Madrid Forum, 29 May 2009
9
Product Design,
Allocation
Definition of products adapted to market needs
• Compatible products and compatible procedures to be
implemented
• Alignment of contracts and codes for firm and interruptible
capacity
• Bundling of capacity at all points connecting adjacent systems
Allocation during an open subscription period (OSP)
In case of congestion the OSP is followed by auction or pro-rata
allocation => Restriction of FCFS
XVI Madrid Forum, 29 May 2009
10
Use-It-Or-Lose-It
Firm day-ahead UIOLI
• Requires at least partial restriction of re-nomination rights
• Allows for re-allocation of non-nominated capacity
• Offer of day-ahead firm capacity via explicit auction; auctiondesign has to be aligned to activities on trading markets
Long-term UIOLI
• Preconditions inter alia: Systematic underutilisation, no justification
• Withdrawal of contract or restriction of nomination
Freeing up capacity (capacity release)
 Some ERGEG’s proposals will impact existing contracts but do
not question their existence
XVI Madrid Forum, 29 May 2009
11
Monitoring results
ERGEG principles
Public consultation
XVI Madrid Forum, 29 May 2009
12
Public Consultation
Public Consultation launched from January to March 2009
• Stakeholder workshop in Brussels, 18 February 2009,
over 100 participants
• Bilateral meetings or phone conferences with stakeholders
(GTE+, GEODE, EFET)
36 answers to the public consultation
BDEW, BNE, BP, CEDEC, Centrica, DONG Energy, Econgas, EdF, Edison,
EDP Gas, EEX, EFET, EirGrid, EnBW, Endesa Ireland, Eni, E.ON, Eurelectric,
Eurogas, ExxonMobil, Gas Natural, Gaselys, Gaslink, GasTerra, GDF SUEZ,
GEODE, GTE+, Iberdrola, NationalGrid, Naturgas Energia, Nederlandse
Gasunie, Scottish and Southern Energy, Shell, Statkraft, Statoil Hydro
(plus two confidential answers)
XVI Madrid Forum, 29 May 2009
13
Supportive Answers
Respondents support ERGEG’s proposals with regard to:
• Approach and scope of proposed measures; identification of the
relevant problems
• Increase of cooperation between TSOs
• A more dynamic capacity calculation combined with
capacity buy-back  Role and price of interruptible to decrease
• Allocation procedure: FCFS discriminatory; auctions slightly preferred
over pro-rata
• Capacity products of various duration:
- harmonisation of products and procedures and bundled products
- reservation of short term capacity
• Transparency on flows close to real-time
XVI Madrid Forum, 29 May 2009
14
Hesitant Feedback and
Additional Proposals
Respondents hesitant to or reject the following ERGEG’ proposals:
• Restriction of existing re-nomination rights
• Freeing up and withdrawal of underutilised capacity
Modification of existing contracts mostly rejected
• Toolbox approach: extensive harmonisation required;
Respondents propose additional measures:
• Consistency throughout Europe; if not, risk of inconsistency
• Closer NRA co-operation required for cross-border harmonisation
• Tariffication and investment issues to be addressed
• Many comments received regarding the development of
secondary markets
XVI Madrid Forum, 29 May 2009
15
Conclusion and
Way Forward
Conclusion
• Market participants largely supportive of ERGEG’s approach and
proposals but react hesitantly on some specific proposals
• ERGEG will redraft its principles accordingly
Way forward
• July 2009:
Publication of ERGEG’s evaluation of comments
• September 2009:
2nd stakeholder workshop if needed
• October 2009:
Publication of ERGEG’s principles on CAM and
CMP, to be presented at the next Madrid Forum
• From end 2009:
Possible launch of a comitology process
Preparation of the 3rd package implementation
(Framework Guidelines and cooperation with
GTE+ / ENTSOG)
XVI Madrid Forum, 29 May 2009
16
Thank you for your attention!
www.energy-regulators.eu
Mark your diary for the World Forum on Energy Regulation IV
October 18-21, 2009
Athens, Greece
www.worldforumiv.info
XVI Madrid Forum, 29 May 2009
17