ENTSOG Gas Regional Investment Plan South 2017 - Main Report

7.1 Local Context

7.1.1 TOWARDS A SINGLE MARKET PLACE IN FRANCE

On 1 April 2015, in accordance with the schedule decided by the French Energy Regulatory Commission (CRE) on 19 July 2012, TIGF & GRTgaz –sud merged their gas hubs to form a single trading region: the Trading Region South (TRS). In addi- tion, with a view to promoting the development of the integrated gas market on a European scale, transit capacities are traded on the PRISMA platform, used by the majority of European gas transit networks. The TRS is based on a “Trading Region” model, which is one of the European market integration models identified by the regulators. With the creation of the TRS, the Trading Region model has made it possible to retain two independent balancing zones within an extended Entry/Exit pricing region.

LIASON NORD-SUD

TRS Trading Region South by GRTgaz & TIGF

PITS SUD ATLANTIQUE

TRS

PIR JURA

PITS SUD-EST

PITS LUSSAGNET

PITTM FOS

PITT PIRINEOS

TRS

GRTgaz Nord GRTgaz Sud

TIGF

Figure 7.1: Trading Region South (TRS) (Source: TSO own elaboration)

In order to optimise the use of the interconnection between the TRS and PEG Nord, the French regulator asked the TSOs to put in place some market tools in its decision of 30 October 2014 in order to maximise availability of firm and interruptible capacity (JTS, buy local gas,…). This region, covering the South of France, is now serviced by eight diversified supply sources and represents an annual domestic consumption of approximately 12 billion cubic meter. In 2018, the single market place will be implemented in France. It will lead to an attractive and competitive gas market over the long term with a single national price. In addition to the commissioning of the necessary infrastructures the Val-de-Saône and Gascogne-Midi projects, additional market-based mechanisms are being developed to ensure a smooth running of the future single marketplace in all circum- stances. The single marketplace will work in compliance with the principles which have been selected to create the TRS with a balancing GRTgaz area and a balancing TIGF area.

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