ENTSOG Implementation and Effect Monitoring Report 2017 - Capacity Allocation Mechanism Network Code

Effect Monitoring Indicators

CAM INDICATORS

CAM.2: Share of secondary market-traded bundled capacity to secondary market traded unbundled capacity

The booking platforms (BPs) have been requested to provide data for TSOs using their tools for capacity auctions. The BPs generated the data sets and sent them to the TSOs for verifi- cation. After TSO confirmation or eventual amendment, BPs sent the data to ENTSOG.

Period monitored is the gas year 1 October 2016 – 30 Sep- tember 2017.

This indicator CAM.2 might be used to measure the desired effect of the CAM NC to enhance secondary trading of (bun- dled) capacity. For clarification, ENTSOG’s understanding is that the total basis for the calculation of the % of bundled ca- pacity sold is the total volume of unbundled and bundled (firm) capacity sold on the secondary market.

ENTSOG has decided to further develop the following indica- tors.

CAM.1: Share of capacity sold as part of a bundled product in total sold capacity

Calculation formula:

Period monitored is the gas year from 1 October 2016 until 30 September 2017.

CAM.2 =  TCSSMB  × 100 TCSSM

Each of the indicators shows the ratio of allocated firm capac- ity as part of a bundled product in total allocated firm capac- ity as an average volume of all the participating TSOs. One in- dicator is calculated per one standard capacity product (yearly, quarterly, monthly and daily firm capacity products).

Where:

CAM.2:

a ratio of total firm bundled capacity traded on secondary market in total firm capacity traded at secondary market

Calculation formula:

TCSSMB: bundled capacity traded at the secondary market

CAM.1 =   TCSB   × 100 TCS

TCSSM:

capacity traded at the secondary market

Where:

Interpretation:

CAM.1: returns a ratio of total firm bundled capacity sold in total firm capacity

CAM.2 = 100: all capacity exchanged on the secondary market is bundled.

TCSB:

bundled firm capacity allocated

CAM.2 < 100: This shows share of bundled capacity exchanged on the secondary market among all capacity exchanged on the secondary market. Exchange of unbundled capacity will be a clear indication that network users are trying to bundle their LT contracts. The indicator should tend to 100 in the long run.

TCS:

firm capacity allocated

Interpretation:

CAM.1 = 100: means all firm capacity allocated is bundled

CAM.1 < 100: This shows the share of firm bundled capaci- ty among the total firm capacity allocated.

CAM.3: Increase of market participants in a system

The outcome (number itself) is hard to interpret but the trend (more years in a row) might give a better picture of the development in the future.

ENTSOG uses an integer number of active participants and starts building historical data. Continuous increases in market participants do not always reflect the increase of competition on the market. There might be a situation where a stable but low number of participants is natural and the most efficient for the market. This should be carefully evaluated and explained in the report and in future reports. Therefore, this is an auxiliary indicator.

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