22 nd IG Meeting South Gas Regional Initiative
The 22nd IG Meeting of the South Gas Regional Initiative held on March 25th, 2013, focused on discussing and proposing congestion management procedures for implementation by October 2013. Topics included capacity surrender, oversubscription issues, and the roadmap for CMP harmonization in the region. Agreed issues, responsibilities, and deadlines were outlined, with a particular emphasis on the process of surrendering and reallocating capacity. Various aspects related to CMP implementation were deliberated, such as the bundling and sale of surrendered capacity and revenue distribution from sales.
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22nd IG Meeting South Gas Regional Initiative 25thMarch 2013 - videoconference 1
22ndIG meeting SGRI- Agenda I. Opening Welcome I.1 Approval of the agenda and minutes from the last meeting (for approval) I.2 II. Congestion Management Procedures (CMP) Agreed issues and aspects to be proposed by TSOs for the CMPs implementation by October 2013 (for information by Regulators): Capacity surrender UIOLI LT Oversubscription and buy-back Preliminary version of the CMP Roadmap in the SGRI (for information by TSOs) II.1 II.2 III. AOB and next meetings (for discussion) 2
II. Congestion Management Procedures II.1. Agreed issues and aspects to be proposed by TSOs II.2. Preliminary version of the CMP Roadmap in SGRI Area of work Responsible Starting Deadline CMP harmonization in the whole region NRAs-TSOs Oct. 2012 Oct. 2013 CMP harmonization in the whole region (including UIOLI firm ST) NRAs-TSOs Oct. 2012 Jul. 2016 3
II. Congestion Management Procedures II.1. Agreed issues by NRAs and aspects to be proposed by TSOs (for information by Regulators) 4
II. Congestion Management Procedures Implementation of Capacity surrender by October 2013 (I) Agreed issues TSOs must accept any surrender of capacity except for DA and WD. Total and partial surrender, both in quantity and period will be accepted. Shippers cannot impose conditions on the sale of their surrendered capacity. Surrendered unbundled capacity, when possible, will be bundled before sold. Primary holders retain rights and obligations till the surrender capacity is allocated. Surrendered capacity to be reallocated only after all the available bundled capacity has been allocated. If available unbundled capacity exists: TSOs sell the bundled surrendered capacity in first place or TSOs unbundle the surrendered capacity, and sell part of it once bundled to the available unbundled capacity. There is a risk that the initial holder of the bundled product ends up with only part of its surrendered bundled capacity sold and he retains his rights and obligations for the other part of the surrendered bundled product (under discussion within the CAM TF of ACER). 5
II. Congestion Management Procedures Implementation of Capacity surrender by October 2013 (II) Agreed issues (cont.) Surrendered capacity will be sold as short term products (yearly products as quarterly and monthly products, quarterly products as monthly products), surrendered monthly products remain the same. When several surrendered equivalent products exist, the allocation priority will be time stamp. Primary capacity holder will not receive any revenue coming from the sale of his surrendered capacity. Issues under discussion The charge of a fee for the shipper in case of successful allocation is currently under discussion between CRE and the TSOs. CNE is in favour of not having any fee. In France, when price differences between the initial allocation and the reallocation, this proposal is under discussion: If the initial price (P1) is lower than the price when reallocated the capacity (P2): the shipper is relieved from any payment obligation. If P1 is higher than P2 : price is the difference between P1 and P2. 6
II. Congestion Management Procedures Implementation of Capacity surrender by October 2013 (III) Aspects to be proposed by TSOs How to proceed to allocate surrendered capacity when there s still available unbundled capacity at the IP Define the method to apply when the initial allocation price is different from the reallocation price 7
II. Congestion Management Procedures Implementation of UIOLI LT by October 2013 (I) Agreed issues Affected contracts: contracts with duration of more than one year or recurring quarters covering at least two years, for bundled and unbundled capacity. TSOs make an analysis in advance of the auctions, to know if there are underutilised contracts and if this capacity has been offered to the market. If capacity requests could not be satisfied due to lack of capacity, the UIOLI mechanism will be applied and the capacity will be released. NRAs will establish a common approach of what capacity offered under reasonable conditions mean. TSOs provide annually NRAs with information to monitor capacity use. 80% is the minimum utilization rate required to avoid application: Every year, capacity use in two periods (April-September and October-March) will be analysed. Systematically renominations downwards will be also analysed too. Criteria to make the calculation need to be provided (one month out of the six months period with an utilization level of 80% on average). 8
II. Congestion Management Procedures Implementation of UIOLI LT by October 2013 (II) Agreed issues (cont.) Primary holders retain rights and obligations till the released capacity is allocated. Released capacity to be offered in quarterly capacity auctions. When there is a difference between the duration of capacity products released and requested, the products allocated will follow the CAM NC standard products. 9
II. Congestion Management Procedures Implementation of UIOLI LT by October 2013 (III) Aspects to be proposed by TSOs How to analyze if there have been capacity requests not satisfied due to lack of capacity What can be considered as systematically renominations downwards and how to calculate it. The formula to calculate the capacity utilization rate in the two periods and the criteria to determine if the UIOLI mechanism must be applied. How to release the underused capacity of year n, if the shipper has a different booked capacity in year n+1 (i.e., capacity booked in year n+1 is lower that the underused capacity in year n). 10
II. Congestion Management Procedures Implementation of Oversubscription and buy back by October 2013 (I) Agreed issues TSOs must produce a proposal with a dynamic approach to define the firm additional capacity to be sold, based on statistical analysis of the unused capacity and considering technical aspects and capacities in adjacent networks. Additional firm capacity will be offered only for next year?, quarterly, monthly and daily products. Additional firm capacity will be sold after allocation of available capacity and any other released capacity. Interruptible capacity will be interrupted before launching the buy-back mechanism. Shippers won t be able to renominate upwards when the buy-back mechanism is launched. TSOs will regularly inform NRAs on this mechanism application. 11
II. Congestion Management Procedures Implementation of Oversubscription and buy back by October 2013 (II) Aspects to be proposed by TSOs Common criteria to calculate the additional firm capacity to be offered coordinated with the definition of interruptible capacity Proposal on the splits of cost and revenues between TSOs and shippers as required by the Regulation. Later to be decided by NRAs Under which conditions the buy-back mechanism must be launched (possible TSOs measures to be applied before the buy back is necessary) Possible buy-back mechanism (auction, auction with a price cap, prorate with a predefined price, etc.) A calendar proposing a gradual implementation of this CMP 12
II. Congestion Management Procedures CALENDAR TSOs to prepare and send NRAs a proposal containing the detailed mechanisms with the issues agreed in the RCC/IG meeting Surrender and UIOLI proposal OSBB (Full document) 22th Apr 14st May NRAs to review and give feedback on TSOs proposal_________________________________________ 3th June TSOs to amend their proposal with NRAs comments________________________________________ 24st June Public consultation_________________________________ July NRAs to approve the mechanism_____________________ 20th September Entry into force___________________________________ 1st October 13
II. Congestion Management Procedures II.2. Preliminary version of the CMP Roadmap in SGRI (for information by TSOs) 14
Meetings calendar for the first semester 2013 JANUARY J 2 9 16 23 30 FEBRUARY X J MARCH J L M X V S D L M V S D L M X V S D 1 8 3 4 5 6 1 8 2 9 3 1 8 2 9 3 7 10 17 24 31 11 18 25 12 19 26 13 20 27 4 5 6 7 10 17 24 4 5 6 7 10 17 24 31 30 Jaunary 18th SG 27 February 21th IG 13 March 12th RCC 25 March 22nd IG 14 21 28 15 22 29 11 18 25 12 19 26 13 20 27 14 21 28 15 22 16 23 11 18 25 12 19 26 13 20 27 14 21 28 15 22 29 16 23 30 2013 ABRIL J MAY J JUNE J L M X V S D L M X V S D L M X V S D 1 8 2 9 3 4 5 6 7 1 8 2 9 3 4 5 1 8 2 9 10 17 24 11 18 25 12 19 26 13 20 27 14 21 28 6 7 10 17 24 31 11 18 25 12 19 26 3 4 5 6 7 24 April 19th SG 12 June 23rd IG 15 22 29 16 23 30 13 20 27 14 21 28 15 22 29 16 23 30 10 17 24 30 11 18 25 31 12 19 26 13 20 27 14 21 28 15 22 29 16 23 30 Next meetings: 24th April: 19th SG New date: 30 April ? 12th June: 23rd IG Next RCC meeting ? 16
