ENTSOG Tariff NC - Implementation Document 2nd Edition

IMPLEMENTATION MONITORING

ARTICLE 36

Responsibility: TSOs send information to ENTSOG; ENTSOG produces the monitoring reports and sends them to ACER; ACER produces a report on RPMs

Article 8(8) of the Gas Regulation requires ENTSOG each year to ‘monitor and analyse the implementation of the NCs 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’. Article 8(8) also requires ENTSOG to ‘report its findings to the Agency and […] include the results of the analysis in the annual report’ . The content of these ENTSOG’s reports is connected with the specific ADs. That is, each report would cover different Chapters depend- ing on a specific AD. Generally, compliance with Chapter VIII ‘Publication requirements’ takes place after its entry into force as explained in Part 1 above, indicated in orange in Figure 40. This Figure also shows the ‘early compliance’ case in December 2017 which is further explained in Chapter VIII ‘Publication requirements’, Article 31 – publication notice period. Therefore, the first monitoring report will also cover the early compliance. Article 36 of the TAR NC sets out specific deadlines for TSOs to provide ENTSOG information, and for ENTSOG to report to ACER in 2018 and 2020, as shown in green in Figure 40. While the specific reporting deadlines involve only two years, an- nual monitoring and reporting activity implies an additional report in 2019, shown in Figure 40. Figure 40 does not show the 2021 monitoring report, since it does not fall explicitly or implicitly under Article 36 as linked to implementation, and would there- fore cover only the ‘effect’ component of monitoring as opposed to implementation. Figure 40 shows in grey the indicative content of ENTSOG’s monitoring reports, with three purple crosses indicating the deadlines for their preparation. ENTSOG’s first TAR NC monitoring report (by 31 March 2018): For implementation monitoring , this report will cover the TAR NC Chapters with AD 1 as well as partially Chapter VIII ‘Publication requirements’. Although the AD of Chapter VIII is 1 October 2017, compliance with its obligations occurs later as explained in Part 1 above  1) . The deadline of 31 December 2017 for the provision of information by TSOs to ENTSOG will only be met for compliance by TSOs with an obligation to publish tariff information before the tariff period January –December. For other tariff periods, compliance will not be possible as the deadline of 31 December 2017 precedes the deadlines of March, June and September 2018 for publishing information before the tariff period. The same applies for publishing information before the annual yearly capacity auctions as the deadline of­ 31 December 2017 precedes the deadline of June 2018. The next ENTSOG monitoring report will address the obligation to publish tariff information before other tariff periods as well as compliance with an obligation to publish tariff information before the annual yearly capacity auctions. For effect monitoring , the same report will cover indicators designed to provide a reference database as of March 2018. Such a database will serve for comparisons in future effect monitoring reports after 2018, in order to monitor the effects of the TAR NC on the European gas market. The indicators likely to be considered by ENTSOG may deal with both the variability of the regulatory account balance and the variability of tariffs (as an estimation for TSO tariff instability), with the evolution of long-term vs. short-term capacity bookings (as an estimation of the TAR NC impact on capacity portfolios, in relation with CAM NC), and with the availability of documents in English (as an estimation of information transparency for foreign market participants).

 1) Except for the case of early compliance – see Chapter VIII 'Publication requirements', Article 31 – publication notice period.

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