ENTSOG Annual Report 2016

Activities in the Market Area in 2016

CAPACITY WORKING GROUP

Capacity Allocation Mechanisms

Congestion Management Procedures

ENTSOG published two auction calendars in 2016. In January 2016 for the gas year 2016/2017 and in November 2016 for the gas year 2017/2018.

In June 2016 the implementation monitoring report 2015 for CMP GL was published.

ENTSOG launched the implementation and effect monitor- ing process 2016 in Q4/2016. This monitoring is required by Article 8(8) of the Regulation (EC) No 715/2009.

In June 2016 implementation monitoring report 2015 for CAM NC was published.

In Q4/2016 ENTSOG launched an implementation and effect monitoring process 2016 for CAM NC. This monitor- ing is required by Article 8(8) of the Regulation (EC) No 715/2009. ENTSOG launched the process in order to ensure timely publication of results in 2016 Annual Report. On October 13th, 2016 the amendment of CAM NC was en- dorsed by the Gas Committee of EU member states. Article 21(3) states that ENTSOG has to develop a Capacity con- version model until 1 October 2017, which shall function as a basis for TSOs to offer capacity conversion services as of 1 January 2018. The ENTSOG conversion model according to CAM NC builds upon previous work done by ENTSOG in this area in 2015. The ENTSOG recommendation paper published in 2015 derived from extensive and transparent work stream included measures to prevent the “capacity mismatch issue” as well as potential options to handle this practically. Initially, the implementation of any of the meas- ures and options was based on voluntary action and/or sub- ject to approval on national level. The revised CAM NC Art 21(3) obliges TSOs to offer a capacity conversion service based on the ENTSOG model. ENTSOG Capacity conver- sion model is to be developed until October 2017, a process which ENTSOG started already in Q4/2016. To fulfil ENTSOG’s legal requirements as stated Article 20 CAM NC (EU 459/2017) – alignment of main terms and conditions for bundled capacity products – ENTSOG started in Q4/2016 a work on the review and creation of a catalogue of the main terms and conditions of the transport contract(s) for bundled capacity products. This work included identify- ing and categorising differences across the member states in relation to the main terms and conditions and the reasons for such differences including publication of findings in a re- port and the development of final template for main terms and conditions. ENTSOG supported activities of Energy Community Secre- tariat related to implementation of CAM NC and CMP GL in Energy Community Contracting Party countries, ENTSOG experts participated at three physical meeting of EnC in order to provide know-how and best practices transfer from EU TSOs to EnC CP countries/TSOs/NRAs.

Incremental Capacity work

In 2016 the activities of the INC AKG covered the ongoing development of the CAM amendment and the TAR NC. This included working closely with ACER and the EC. For harmonizing the process for the development of incre- mental capacity, new rules for incremental capacity have been included in the Network Code on Capacity Allocation Mechanism (CAM NC). An amended version of CAM NC has been endorsed by the Member States in October 2016 (with application date in April 2017).

Based on the CAM NC amendment on incremental capaci- ty ENTSOG developed in Q4/2016 two templates:

\\ Template for non-binding demand indications by net- work users to be sent to TSOs

\\ Demand assessment report template as requested by CAM NC Art. 26

ENTSOG was encouraged by stakeholders to organise a joint, ad-hoc, “reality check workgroup on Incremental capacity”, under the management of ENTSOG. The objec- tives were to develop a more detailed understanding of the incremental process, to test the INC process on the basis of a virtual but realistic case for additional cross-border capac- ity and to propose improvements to CAM NC amendment for the identified inconsistencies within EC CAM NC comitology process in 2016. On this basis ENTSOG established the so called INC Reali- ty Check WG. Members of this workgroup were experts from 16 TSOs and experts from four stakeholders. The work- group had twelve WG full day meetings in 2016. As a main output, the workgroup created nine recommendations to European Commission. Seven recommendations were adopted by DG ENER to the proposal of CAM NC amend- ment, however all nine recommendations were finally adopted during final comitology meeting on 13 October 2016.

ENTSOG Annual Report 2016 |

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