European Transparency Requirements – Draft Mod

Transmission Workstream

4th September 2008

European Transparency Drivers

Transparency seen as key to liberalization of European gas market

Drivers: Compliance with existing EC Regulation 1775/2005 3rd Package of amendments to current

Regulation/Directives on gas market liberalization GRI NW (Gas Regional Initiative North West)

GRI NW Transparency Project

European Regulator’s Group for Electricity and Gas (ERGEG), of which Ofgem is member, established Gas Regional Initiative in April 2006

Develop regional solutions as stepping stone to European internal gas market

GRI NW Transparency project (Ofgem lead regulator) Aim: improve publication of capacity and flow data Transparency project plans developed by TSOs Demonstrate commitment to respond to market requirements Agreed information provision extends beyond requirements of EC

Regulation 1775/2005 Anticipates 3rd package amendments

Participation in GRI is voluntary, but TSOs are expected to deliver agreed outputs

UK Requirements

UK regime largely compliant and frequently exceeds requirements

Only 2 gaps identified concerning exit capacity and day ahead nominations

Compliance requires provision of day ahead nominations at points of connections

between TSOs and LNG terminals publication of “technical, contracted and available” exit capacity at

interconnectors

TSOs to publish agreed data set by end of 2008

If data not published then TSOs must identify reasons for delay (e.g. IT related, or legal) and provide implementation plans

UK Way Forward – Exit Capacity

Exit Capacity - (technical, contracted and available)

Await clarity re Exit Reform (November 2008) Relevant point consultation (EC Regulation 1775/2005,

Article 6.4) can also proceed at this point

UK Way Forward – Day Ahead Nominations

Requirements involve connections with other TSOs and importation points for “non-indigenous gas”

Original focus was on key entry points Some concerns raised by stakeholders re this level of disaggregation

ASEP information considered more relevant to UK regime Aligns nomination data with how entry capacity is sold Publish at all major ASEPs to avoid discrimination issues Bacton, Barrow, Easington, Garton, Hornsea, St Fergus, Teesside,

Theddlethorpe, Isle of Grain & Milford Haven

Raise Mod for Publication of Day Ahead Nominations Publish aggregate nomination at major ASEPs at 18:00 D-1 Information provided as part of MIPI Phase 2

N.B. Publication of nomination data is voluntary at present

Future Requirements

Current GRI NW Transparency Project now being described by ERGEG as “Phase I”

Network user groups (e.g. EFET, IFIEC) to provide paper re priorities for “Phase II”

Paper expected September/October 2008 TSOs to respond by next GRI NW Stakeholder

conference in November 2008 3rd Package

New information requirements such as “ex-ante and ex-post supply and demand information, based on nominations, forecasts and realised flows….”