ENTSOG First Report on Implementation Monitoring and Baseline for Effect Monitoring of the Tariff Network Code

Rationale and Time Reference for this Report This report consists of two parts: Implementation monitoring (‘IM’) and effect monitoring (‘EM’) which echoes the requirements of the Gas Regulation. In particu- lar, Article 8(8) of the Gas Regulation requires ENTSOG to ‘monitor and analyse the implementation of the network codes and the Guidelines adopted by the Commission in accordance with Article 6(11), and their effect on the harmonisation of applicable rules aimed at facilitating market integration’ . This Article also requires ENTSOG to ‘report its findings to the Agency and […] include the results of the analysis in the annual report’ . In addition, the TARNC outlines some specific requirements. In particular, Article 36 ‘Implementation monitoring’ of the TARNC contains specific provisions related to the IM: it sets the deadline of 31 December 2017 for the transmission system operators (‘TSOs’) to submit the required information to ENTSOG. ENTSOG must submit their monitoring report to ACER by 31 March 2018. The TARNC does not contain specific provisions related to the EM. Although this report is being published in 2018, it is the TAR NC 2017 report for both IM and EM. ENTSOG has developed this report: (1) to monitor the implemen- tation status of the TARNC by TSOs, as of 31 December 2017: and (2) to monitor its effects on the European gas market, with EM 2017 covering data from 2013 to 2017 which will set a baseline for future TARNC EM reports.  1) The information for this report was submitted to ENTSOG in quarter four 2017, some additional information has been included based on data from quarter one 2018. An executive summary of this report will be included in ENTSOG’s annual report for 2018. On 2 October 2017, ENTSOG contacted TSOs from 26 out of the 28 EU Member States (‘MS’), to collect the required information for this report: (1) from 23MS where the TARNC applies as of 6 April 2017 (Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom); and (2) from three MS where a derogation is in place (Estonia, Finland, and Luxembourg). While the application of the TARNC is mandatory in the 23MSs above, it is only optional in the 3MSs with a derogation. The remaining 2MSs (Cyprus and Malta) do not have TSOs, therefore they were not contacted to take part in this report. Further information is set out in the ‘Status of derogations from the TARNC’ section below. In total 51 European TSOs from the above mentioned 26MSs were contacted: the 45 ENTSOG Members, the 2 Associated Partners, and 4 other European TSOs. Out of these 51 TSOs, three TSOs are from MSs with a derogation in place, as such no information was provided; and for two TSOs, as per their national regulatory frame- work, tariffs are calculated and published by a third TSO from the same MS who is responsible for tariff derivation – for this report, the information for these two TSOs is contained in the information sent by the third TSO. TSO Participation

 1) Regarding the publication and consultation provisions of the TAR NC: the IM part of this report covers past publication and future consultations, while the EM part of this report covers the future for both publications and consultations.

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TAR NC Implementation and Effect Monitoring Report 2017

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