Overview of pilot on gas capacity allocation framework guidelines
The 16th Madrid Forum agreed that in order to progress on framework guidelines and network codes it is best to start working on a first framework guideline and network code to establish the process. The Forum therefore asked ERGEG to work on the development of a framework guideline and subsequently GTE+ to work on a network code replicating the procedure in the new Gas Regulation, including the rules on consultations and transparency.
The Forum agreed that a pilot framework guideline should be developed based on the provisions presented by ERGEG on capacity allocation and congestion management requiring TSO cooperation or joint TSO action. The Commission has sent a letter to ERGEG with the request to prepare framework guidelines, thus replicating the procedure in the new Gas Regulation for the interim period. Under the new Gas Regulation the Agency will have 6 months to prepare a framework guideline starting with a formal request from the Commission.
European Energy Regulators encourage all stakeholders to participate in the process and to provide feedback on process at any time. The Commission, European Energy Regulators and GTE+ will also monitor the process closely to identify areas for improvement.
Gas Capacity Allocation Pilot
The goal of the framework guideline and the subsequent network code on capacity allocation mechanisms is to optimise the use of network capacity across borders, the integration of markets, and enhancement of hub-to-hub trading through harmonisation of the way capacity is offered and marketed at interconnection points. The Commission requested that ERGEG prepare a pilot framework guideline on the following items:
- The framework guideline should describe general principles and the scope and level of TSO cooperation in capacity allocation. It should elaborate on more specific fields of TSO cooperation, including in particular the joint/coordinated offering of capacity on interconnection points of borders and/or systems (e.g. nature, and level of bundling of products), the optimisation of available capacity by enhanced operational coordination, the harmonisation of transportation contracts and codes, and relevant communication procedures.
- With respect to the reasonably small set of capacity products to be offered to network users, the framework guideline should set the framework for harmonisation of the range of capacity products to be developed and applied by all EU TSOs, the nature and level of bundling of such products, and the contents, structure, and duration of harmonised capacity contracts, including possible quotas (withhold an amount for shorter term).
- Finally, the framework guideline should describe the relevant procedures and tools to be applied in the process of contracting capacity (booking procedure), including the timeline to be followed (e.g. number of rounds per product, requesting periods, reaction time), the details of the allocation mechanisms to be applied (e.g. auction, OSW, FCFS), and the facilitator (e.g. booking platforms) to be used.
Meeting with GTE+
Meeting with GTE+
Meeting with GTE+
Comments to comitology guidelines on congestion management
Following the Conclusions of the 17th Madrid Forum, stakeholders are invited to send their comments to the ERGEG document on recommendations for guidelines on congestion management. This document is intended to serve as input for the Commission when revising the Annex of Regulation (EC) 1775/2005 regarding the rules on congestion management. The deadline for submitting comments is 31 March 2010.
For an overview of the past work ERGEG has done in this area, please consult:
ERGEG Principles: Capacity Allocation Mechanisms and Congestion Management Procedures (Ref.: E08-GFG-41-09), 26 January 2009
Capacity allocation and congestion management in natural gas transmission networks - Evaluation of Comments (Ref.: E09-GNM-07-03), 25 August 2009
Next meetings:
2 February 2010: Public Workshop on the public consultation
3 February 2010 (tbc): meeting with ENTSO-G
Fay Geitona
Secretary General
CEER
28 rue Le Titien
B-1000 Bruxelles
fay.geitona@ceer.eu
or the ERGEG pilot project team: fg_pilot_gas@ergeg.org