tnc source and scope of changes -...

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Warsaw, 24 July 2012

TNC

Source and scope of changes

the system that connects


1. Facilitating entrance on gas market for new

entities.

2. Enabling gas trade separated from physical

network location.

Premises for new TNC

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3. Implementation of 3rd Energy Package resulting from Directive of the European Parliament and of the Council No. 2009/73/EC

and Regulations of the European Parliament and of the Council No.

713/2009 and 715/2009.

4. Separation of physical entry point and exit points, i.e. enabling gas

transport from physical entry points to the virtual point and from the

virtual point to physical exit points.

5. Settlement of gas quantities supplied to the network and off-taken

from the network, i.e. trade balancing.

6. Simplification of principles of gas system use.


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CA

CCA/CA

CCA

FRAMEWORK

AGREEMENT

Framework Agreements

1. The nature of transmission

contracts has totally changed –

by introducing "framework

agreements” – reduced only to

client registration and

submission of appropriate

security measures, and

extension of agreement by any

entry points and exit points may

take place at any moment and

according to concrete needs.

2. All agreements to date will be connected into one for

each client, to ensure coherent and unified principles as well as joint balancing.


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1. The TNC introduces a “virtual point” – not possessing a

concrete location and enabling gas trade inside the

transmission network by clients.

2. The offered product at the virtual point is gaseous fuel –

E high-methane gas.

3. Lw low-methane gas will not be included in trade at the virtual

point.

4. Gas in closed enclaves (e.g. Białystok region - without

connection to the system) will not be included in trade.

5. The product offered at the virtual point will not be a combined

product, comprising of gaseous fuel and capacity.

Virtual point


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1. The TNC regulates cooperation of

the TSO with the Gas Exchange

(TGE).

2. This makes it possible to sell and

purchase gas on the gas exchange

at prices fixed on market conditions

and in keeping full confidentiality of

the transaction.

Cooperation of TSO with TGE

3. The sale agreement concluded with the Gas Exchange is valid and

effective between the parties that concluded it and is subject to

performance by the TSO.

4. Should it prove physically impossible to fulfil the agreement:

• The TSO perform the agreement using the instruments for balancing

• The entity that caused the imbalance situation shall effect a fee for the

imbalance.


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1. Creating a balancing services market - one of the instruments

allowing TSO GAZ-SYSTEM S.A. to maintain integrity of the system

and ensuring security of gas supplies based on market

mechanisms.

2. System services offers will be offered by system users

3. Standard balancing services will include:

• Sale of gas at virtual point,

• Sale of gas in concrete locations,

• Reduction of gas supply at physical entry points to the

transmission system.

Balancing services market


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1. A change in the conditions of cooperation with operators of

distribution systems and storage facilities will enable clients to

transmit gas between transmission systems and distribution systems

as well as storage facilities.

2. Changing agreements with the DSO and SSO into inter-operator

transmission contracts (ITC).

3. Only the DSO and SSO will purchase capacity at physical points

joining their systems with the transmission system of GAZ-SYSTEM

S.A.

Changes in principles of cooperation with DSO and SSO

DSO DSO

TSO Virtual

point

SSO DSO1

DSO2

TSO

Entry Entry

Exit do

DSO1

Exit do

OSD2

Exit

Exit


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1. Implementation of auction

mechanisms on connections with other EU gas systems,

giving the possibility of the

most interested entities to

enter the market and may be a source of additional funds

for the development of such

connections.

Access to the transmission network

2. Implementation of the contracted capacity allocation with

the aid of auctions based on the principles resulting from

the draft CAM Network Code (CAM NC) prepared by ENTSOG pursuant to Directive 2009/73/EC.

3. Streamlining of the procedure effecting changes in the

seller of the gas and increasing its effectiveness for clients wanting to select a new seller.


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1. Change in duration of gas year in order to

adapt to EU solutions and therefore facilitate

commercial transactions (i.e. Oct – Sept instead

of the calendar year starting Jan – Dec).

2. The gas day from 6:00 am until 6:00 am will be

binding as of 1 July 2012.

Gas year


1. The change in admissible

quality parameters of gas

that has been preceded by

a series of tests on gas

equipment (Wobbe Index)

in order to adapt it to the

amended Polish Standards

and to facilitate checking

of the new, more calorific

gas via the LNG terminal.

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Wobbe Index

2. The range of variability of the E high-methane natural gas Wobbe

Index for the introduced under the new draft TNC amounts to 45.0 –

56.9 MJ/m3.



Thank you for your attention

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tnc source and scope of changes -...

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