Transcript DG TREN

 Draft Framework Guidelines on
Capacity Allocation Mechanisms
for the European Gas Transmission Network
Benoît Esnault, CRE
Presentation Workshop
Ljubljana, 7 March 2011
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Introduction
During the “transition period”, ERGEG assumed the role
assigned to ACER by the 3rd package and worked on “pilot”
Framework Guidelines
For gas, ERGEG has been working on 3 pilot FGs:
» Capacity allocation mechanisms (CAM)
» Balancing
» Tariffs
CAM was considered as a priority topic and is the first pilot
FG completed by ERGEG and the first FG addressed by ACER
CAM context: need to improve the access to cross border
points
» Different allocation rules on the two sides of borders
» Different types of capacity products
» Domination of First Come First Served
 More integration to the benefit of competition and
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security of supply
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Drafting process
Preparation of the implementation of the third package:
pilot framework guideline
» CAM selected for the pilot project at the 16th Madrid Forum
» Letter from the Commission received on 22 September
2009
» Consultation on the draft framework guideline launched on
18 December 2009
» Final version adopted on 10 June 2010
ERGEG principles on CAM & CMP published in January 2009
& public consultation provided the basis for the pilot
framework guideline
Letter from the Commission requesting improvements sent on 9
September 2010
Final version of the pilot framework guideline released on 10
December 2010
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Requests from the Commission
The Commission asked for a revision of the Framework
Guideline according to Article 6(4) of Regulation 715/2009
» “The draft FG does not in all aspects contribute to non
discrimination, effective competition and the efficient
functioning of the market”
» 8 points were raised
Three months as from September 9
Requests
» More harmonisation: market based mechanisms only
» Clarification of technical points and contractual issues
» Reduce the role of regulators
Issues to be further elaborated
» “Technical” parameters reg. bundling of capacities (timing,
loss of capacities, relation to existing contracts)
» Auction design (reserve price, existing capacities)
» Rules for firm vs interruptible capacities
» Harmonisation of gas day
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Key points of the FG in its current version
Scope of the Framework guideline: interconnection points
between entry-exit zones within the EU (
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Drafting the guideline required developing a “target model”
» Simplified access to interconnections
» Proper balance between short and long term
» Developing hub liquidity
General principles
» All market areas organized as
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Hub A
Hub B
entry-exit zones with virtual hubs
Limited number
Hub D
Hub C
of capacity products
Regular offer of capacity
Capacity allocation by auctions
Bundling of capacity products
Contractual IPs when several physical IPs between two zones
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Amendments related to the EC requests (1)
Highest possible degree of harmonisation and
minimisation of the role of NRAs
» The pilot FG was amended in that direction
» NRAs will still have room for decision since the NC cannot
cover all potential operational arrangements (Gas
Regulation, Article 13(1))
Bundled products
» Clarification of ”virtual interconnection points”: capacity
at two or more points connecting two adjacent entry-exit
systems is integrated into one single capacity service
» Virtual interconnection points should not lead to a
reduction of capacity
» Implementation within 5 years but
» Sunset clause: how to organize the bundling of capacity
within existing contracts by 5 years after the entry into force
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of the code: definition of a “default” rule
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Amendments related to the EC requests (2)
3 “Sunset clause”
» Mandatory bundling of all the technical capacity within five
years for shippers
» Priority to voluntary agreements
» Default rule: if no agreement, TSOs are entitled to split the
bundled capacity between original capacity holders
proportionally to their capacity rights
» Should not entitle contracting parties to cancel supply
contracts
 A specific impact assessment is going to be launched on the
sunset clause and the default rule
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Amendments related to the EC requests (3)
4 Auctions as the standard allocation mechanism
» Definition of a standard design with possible exemptions
» Anonymous and online based auction procedures
5 Reserve price: decided by the FG on tariffs but reference to
“regulated price”
» Potential over revenues from auctions shall be affected
to reducing tariffs, reduce congestions or to incentivise
TSOs to maximise capacity offer
 Interim period: alternative allocation procedures and
duration to be decided by comitology
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Amendments related to the EC requests (4)
6. Allocation of capacity yet to be built: auctions not sufficient
• Incremental capacity excluded from the scope of the pilot
FG
• However processes for allocating incremental capacities
should be consistent with this pilot FG
7. Clarification of the rules that apply for firm and for interruptible
capacity
• Priority to firm capacity: interruptible shall not restrict the
use of firm capacity
• Auctions are the single target model for both
• Procedures regarding interruptions will be standardized
8. Clarification of the need for a common gas day
• Standard duration for the gas day starting at 6 CET
• Further evaluation by ENTSOG left open
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Way forward
ACER consultation (2 months)
Launch of an impact assessment of the “sunset clause” and
the default rule
• Questions about the potential impact of the “sunset clause”
and the associated default rule: analysis of the legal issues as
well as the economic and strategic aspects
• Study by an independent consultant sponsored by the
regulators
The work on the target model could have an impact on the
final framework guideline
• Role of wholesale markets
• Relations between the market design and the value of capacity
products, etc.
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How to participate in ACER Consultation
Process similar to ERGEG/CEER consultations
Deadline for submissions: 2 May 2011
Register on ACER website
www.acer.europa.eu
www.energy-regulator.eu
Obtain a login
Submit comments through an on-line consultation form
Name and affiliation of all participants published on ACER
website
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thank you for
your attention
www.energy-regulator.eu
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