E07-PC-20: Capacity Calculation

ERGEG Public Consultation 2007/06/15 - 2007/08/10

Background

On the 15th June 2007 ERGEG launched a public consultation on Calculation of Available Capacities - Understanding the Issues.

Adequate available capacity calculation is crucial for effective capacity allocation and congestion management. Variations in the way available capacity is calculated generate risks for undue discrimination of new entrants and create obstacles for trading. The current capacity calculation practice across Europe is based on network scenarios per operational control area (assumptions) chosen by TSOs pursuant to their own judgements and policy. This flexibility in the hands of individual TSOs raises some concerns of proper available capacity calculation such as:

  • no guarantee for coordination between TSOs
  • no industry-wide guidelines for network scenario selection exist
  • no guarantee that the TSOs judgements in the selection of the network scenario are in line with the objective of creating a more fluid and more competitive market
  • no guarantee for consistency over time and across European networks
  • guarantee that the generated level of available capacity corresponds to the maximum capability of the system
  • transparency concerning possible residual risks of interruption associated to the network scenario (reliability) 

In the light of above mentioned concerns, ERGEG seeks views on ways for greater transparency, greater consistency and optimisation of available capacity calculation throughout the EU’s gas transmission networks. Particularly, stakeholder’s views are sought on the following areas: .

Transparency and communication of available capacity calculation across European networks. 

  • Need for the regulation of capacity calculation and on the nature of recommendations for proper capacity calculation.
  • Consistency and coordination of available capacity calculation over both time and networks.
  • Calculation process of available capacity.Ways to maximise the level of available capacity and the use made of it.  
  • Market Matching of capacity.

ERGEG invites all interested parties to comment on the understanding and issues raises in this paper. Any comments should be received by 10th August 2007 and should be sent by email to calculationcapacities@ergeg.org

Following the end of the public consultation period, ERGEG will publish all comments received from stakeholders. Any respondents wishing ERGEG to treat its contribution as confidential should clearly state this in their reply and endeavour to give any confidential material in annexes that can be separated from publishable non-confidential material.

Any question to this document should in the first instance be directed to: 

             Mrs Fay Geitona
             Email: fay.geitona@ceer-eu.org
             Tel. +32 2 788 73 30
             Fax +32 2 788 73 50

Consultation Documents

C06-CAP-06-03 / E07-PC-20-01
Public Consultation Paper: Calculation of Available Capacities: Understanding and Issues

C06-CAP-06-03b / E07-PC-20-12
Conclusion Paper: Calculation of Available Capacities: Understanding and Issues, 11 December 2007

C06-CAP-06-03a / E07-PC-20-12a
Evaluation of Comments Paper, 11 December 2007

Public Responses

E07-PC-20-02
Association of Electricity Producers (AEP)

E07-PC-20-03
Centrica

E07-PC-20-04
EDISON

E07-PC-20-05
Eurogas

E07-PC-20-06
GEODE

E07-PC-20-07
GTE

E07-PC-20-08
International Federation of Industrial Energy Consumers (IFIEC)

E07-PC-20-09
Shell

E07-PC-20-10
Scottisch and Southern Energy

E07-PC-20-11
Statoil