ENTSOG Tariff NC - Implementation Document 2nd Edition

Application of the TAR NC at non-IPs other than points with third countries At other non-IPs which are not entry-points-from/exit-points-to third countries (such as domestic exit points, entry-points-from/exit-points-to storage facilities), the applicability of the TAR NC also depends on the type of rule involved. \\ If the rules have a ‘broader scope’ as described above, then they automatically apply, since such non-IPs fall under ‘ all entry points and all exit points of gas transmission networks ’ per Article 2(1) of the TAR NC. \\ If the rules have ‘limited scope’ as described above, then per ENTSOG’s assumption it is possible to extend their application to such points per national decision. ENTSOG received stakeholder feedback that the TAR NC does not permit the national discretion in terms of expanding the application of the ‘limited scope’ rules to such non-IPs. ENTSOG concluded that the TAR IDoc text should not be amended. As Article 2 foresees, the TAR NC applies by default to all points on the transmission network which also include entry-points-from/exit-points-to storage facilities and entry-points-from LNG facilities. Moreover, there are specific rules in the TAR NC dealing only with entry-points-from/exit-points-to storage facilities and entry-points- from LNG facilities. Therefore, to answer a stakeholder concern, entry-points-from/ exit-points-to storage facilities are not ignored in the TAR NC, and it is not possible to have a specific TAR NC rule without reflecting it in the TAR NC scope. ENTSOG concluded that although the TAR NC is silent on this matter, it does not prevent a national decision to expand the ‘limited scope’ rules to such points. If the national discretion is not mentioned explicitly in the TAR NC text, nothing prevents the national discretion to extend the TAR NC application. ENTSOG’s assumption in this matter refers only to the possibility of application and not to the application as a must. Article 2(2) specifies that the TAR NC does not apply in MSs that hold a derogation in accordance with Article 49 ‘Emergent and isolated markets’ of the Gas Directive. Article 2(2) echoes Article 30 of the Gas Regulation, which exempts the applicabili- ty of the Gas Regulation to MSs for as long as they hold such a derogation. The TAR NC supplements the Gas Regulation, and forms an integral part of it, so if the Gas Regulation does not apply, neither does the TAR NC. Malta, Cyprus, Finland, Estonia and Luxembourg currently have derogations. Article 49 of the Gas Directive mentions Lithuania, but Lithuania did not and does not hold a derogation. \\ The TAR NC does not affect Malta and Cyprus as long as they remain isolated \\ Finland currently benefits from a derogation. However, based on the new Natural Gas Market Act, this derogation will end along with the market opening on 1 January 2020. \\ Estonia currently benefits from a derogation until 2020, but it may open its natural gas market in the near future. According to Article 49 of the Gas Directive, the derogation automatically expires as soon as a MS no longer has only one single main external supplier with a market share above 75%, or as soon as a MS becomes directly connected to the interconnected system of any MSs other than Estonia, Finland, Latvia and Lithuania. \\ Luxembourg holds a derogation according to Article 49(6) of the Gas Directive, which refers to its Article 9 on unbundling of transmission systems and TSOs. markets without a gas transmission system. \\ Latvia had a derogation up until April 2017. Derogation under Article 49 of the Gas Directive

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