Diapositive 1

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Marie-Claire AOUN CRE marie-claire.aoun_at_cre.fr

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Agenda

• Overview of the project
• Guidelines for Good Practice on Open Season
  Procedures (GGPOS)
• Aims of the project
• Experiences on coordinated open seasons
• Need to improve the coordination of the open
  seasons
• Questions

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Guidelines for Good Practice on Open Seasons
(GGPOS)

• Role of the Open seasons procedures
• Assess the market demand for capacity
• Allow a project sponsor to efficiently consult
  the market about how much infrastructure it needs
  and under what terms
• Allocate resulting capacity in a transparent and
  non-discriminatory way
• Structure of an Open Season in 2 phases
• Assessment of the markets needs on the basis of
  an open season notice and through non binding
  capacity requests from interested parties
• Capacity allocation and capacity contracts
• Need for long term as well as short term
  contracts

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GGPOS what they provide for coordination

• Need for coordination with adjacent SOs
• Participants should be able to assess service on
  adjacent systems
• Products offered by the adjacent TSOs have to be
  compatible
• Products have to be offered in a coordinated way,
  using compatible and/or coordinated timetables
  and processes.
• Coordination between NRAs
• Clarity of the regulatory frameworks and
  sufficient degree of similarity (in order to
  design compatible products)
• Ensure that differences between regulatory
  frameworks are not a barrier to investment
• NRAs have to jointly monitor the open season
• NRAs provide timely and coordinated input on
  allocation of costs and tariffs for the use of
  the infrastructure

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Aims of the project

• The main principles of the GGPOS provide floor
  requirements in order to ensure transparent and
  non-discriminatory open seasons
• There is a need to provide more concrete guidance
  on the coordination of open seasons.
• The project focuses on coordinated open seasons,
  but also addresses other difficulties encountered
  by past and present open seasons
• The aim is also to define a rule to determine how
  much additional capacity should be developed for
  short term needs, on top of the long term
  capacity requested through the open seasons

• Complete GGPOS on the basis of the experience
  gained through the ongoing coordinated open
  seasons
• Define effective and operational coordinated open
  seasons mechanisms

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Growing number of ongoing open seasons need for
coordination
Energinet.dk
GTS 2012
EGT/Gasunie/DONG
GTS - Gasunie De
EGT
GRTgaz - Fluxys
GRTgaz
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Open season GRTgaz/Fluxys ( GTS 2012)

• Ongoing process launched in April 2007
• Binding phase Nov. Dec. 2008
• First experience for cooperation and sharing of
  information between TSOs and NRAs
• Difficult to draw a final conclusion before the
  end of the process Positive points and critical
  issues

GTS 2012 Open Season
GRTgaz
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Open season GRTgaz/Fluxys ( GTS 2012)

• Positive points
• Definition of consistent timeframes and some
  coordination on contractual aspects
• Coordinated capacity allocation shippers are not
  exposed to the risk of capacity mismatch
• Memorandum of Understanding between GRTgaz and
  Fluxys
• Open season 2012 of GTS Possibility for shippers
  to adjust their bids by GTS thanks to the update
  of the timing of phase 2 of the open season
• Critical issues
• Delay of more than one year due to discussions
  regarding transit tariffs in Belgium
• Capacity requests in the 1st phase are free
  lack of incentives for shippers to reveal their
  real needs (? E.ON GT open season)
• Short term capacity on top of the requested
  capacity only provided on the French side

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Growing number of ongoing open seasons need for
coordination

• E.ON Gastransport (EGT)
• End of binding phase in June 2008
• Little coordination with adjacent TSOs, partly
  due to the large network area and to the
  important number of IPs covered by the OS
• Need for coordination with GRTgaz
• Integrated network development GTS/Gasunie
• Cross-border network development approach
• Initial phase of market screening (Nov. - Dec.
  2008)
• Non-Binding (Phase 1) and binding agreements
  (Phase 2) in 2009

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Growing number of ongoing open seasons need for
coordination

• Energinet.dk Open season 2009
• Model paper Dialogue on Open season design
  (Nov. 2008) - 1st phase (Feb. 2009) 2nd phase
  (Aug. 2009)
• Capacity bids for each point can vary by /- 15
  from the 1st phase to the 2nd phase
• Need for coordination with adjacent SOs (Gassco,
  Gas System, Swedegas , E.ON Gastransport, DONG
  Energy Pipelines, Gasunie Deutschland)

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National specificities impact coordination

• Different stakes in adjacent MS ? divergent
  priorities
• Belgium transit service
• France develop Hub to Hub capacity
  (Zeebrudge/TTF/PEG North)
• Germany gas network expansion need to
  coordinate with several adjacent SOs
  (Energinet.dk, GTS, Fluxys and GRTgaz)
• Different allocation of risks between the market
  players in MS
• Investment planning varies from one country to
  another

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Need to improve the coordination of the O.S
Main difficulties encountered related to
coordination

• Between regulators rules on each side of the
  border
• Share of the capacity dedicated to short term
  bookings
• Between TSOs
• Contractual aspects In case of delay in the
  realisation of the project on one side of the
  border
• Information exchange between the adjacent TSOs
  Confidentiality claimed by certain TSOs hindering
  the information exchange with adjacent SO No
  legal barriers for sharing data Contractual
  provisions of confidentiality.

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Conclusion

• Growing number of OS ? increasingly becoming the
  standard procedure for major investment projects
  in many MS
• Coordination between TSOs and NRAs is possible as
  proved by the ongoing coordinated open seasons
• Coordination can be hindered by several
  obstacles
• External element that slows down the ongoing
  process
• Divergences between regulatory rules of adjacent
  MS
• Lack of information sharing between adjacent TSOs
• The coordination of open seasons requires
• Compatibility of the different systems
• A certain degree of similarities in regulatory
  frameworks
• Complete cooperation between adjacent TSOs

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Question 1 Coordination issues

• What are the concrete difficulties you have
  encountered during open seasons processes related
  to coordination with an adjacent TSO
• Coordination of regulatory rules?
• Coordination between TSOs on contractual aspects,
  timing, technical issues?
• Other?

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Question 2 Information exchange

• Do you agree with the fact that adjacent TSOs
  should share with each other all the information
  related to the open season procedure for a
  successful coordination?

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Question 3 Additional short term capacity

• Do you think that additional capacity should
  systematically be developed for short term needs
  or security of supply reasons, on top of the long
  term capacity requested through the open seasons?
  If yes, how much (10, 20)?

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• Thank you for your attention!