3rd SG Meeting – Gas Regional Initiative (GRI) Region South-South East

3rd SG Meeting – Gas Regional Initiative (GRI)

Region South-South East

22 January 2008Prague, Czech Republic

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SG meeting agenda – 1

Agenda Topics Rapporteur

11.00 1. Opening

1.1. Welcome

1.2. Approval of the agenda

1.3. Approval of the minutes of the last IG meeting

1.4. Review of action points

Co-chairs

AEEG and E-

Control

11:15 2. Update of all stakeholders on progress made so far

2.1. Outline of current priorities

2.2. General update

RCC

AEEG and E-

Control

12:00 3. Progress made since last implementation group meeting

3.1. Best-practice standardised bulletin board

3.2. Conclusion of IPA/OBA

3.3. Promotion of one-stop-shop (OSS) services

3.4. Hub developments as regional balancing markets: CEGH & PSV

TSOs

Shippers

Hub operators

13:00 Lunch break

Covered in detail later

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SG meeting agenda – 2

Agenda Topics Rapporteur

14:00 1. Progress made since last implementation group meeting (cont’d)

1.3. Survey of planned investment

1.4. Comments on a Regional Entry Exit Tariff System

1.5. Comments on EFET`s proposal of a Regional ISO Model as a way

forward

RCC, TSOsAll

stakeholders

15.00 Coffee break

15:30 2. Discussion

2.3. Barriers to enter national markets in the SEE

2.4. Comments from stakeholders

RCC, EFET,

comments from

stakeholders

16.00 3. Closure

3.3. AOB

3.4. Summary of key achievements in the region

3.5. Outlook and next steps

3.6. Proposed date(s) of the next meeting

Co-chairs

AEEG and E-

Control

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2. Update of all stakeholders on progress made

Outline of current priorities

- Priority I: Best-practice standardised bulletin board

- Priority II: Summary of planned investments (incl. Storage)

- Priority III: Conclusion of OBA/IPA at interconnection points

- Priority IV: Best practice provision of one-stop-shop (OSS) service

- Priority V: Regional entry exit tariff system (REETS)

- Priority VI: Hub development as a regional balancing market

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Priority I: Best-practice standardised bulletin board

GRI REM SSE started work on standardised trading platforms for transmission capacity on all major transmission systems of the region, which is expected to facilitate secondary market trading for shippers.

Aim: A harmonized content for individual TSO platforms according to examples provided by TAG as ‘best practice’. The platforms are expected to be ready by end of 2007.

Responsibility for implementation: TSOs, update at IG meeting in October 2007, further implementation until December 2007.

Update to be provided today!

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Priority II: Summary of planned investments (incl. Storage)

GRI REM SSE started work in the summary of planned investments in the region which shall identify future bottlenecks and help improving congestion management.

GRI REM SSE has circulated a questionnaire to TSOs, SSOs and NRAs. A first analysis of responses has been presented at the last IG meeting in Maribor.

Aim: To include information on expansion projects (Transmission & Storage) into the survey as well, cross-check with eg GSE database.

Responsibility for data analysis: RCC. Next steps: re-circulation of questionnaire to all stakeholders with a request to check the data and re-submit any missing data items.


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Priority III: Conclusion of OBA/IPA at interconnection points

GRI REM SSE started work on removing obstacles to the implementation of IPA/OBA.

GRI REM SSE involved stakeholders work on a solution for the implementation of an OBA at Baumgarten including a list of remaining obstacles.

Progress made: - Murfeld and Gorizia: conclusion of IPA/OBA ?- Baumgarten: CEGH to coordinate with TSOs to conclude IPA/OBA

Responsibility: TSOs, shippers; CEGH


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Priority IV: Best practice provision of one-stop-shop (OSS) service

GRI REM SSE worked in ensuring market integration via simplification how gas can be shipped both within the region and across the region; role model for the whole of the EU.

GRI REM SSE agreed with TSOs that they will provide with services on request of shippers for the whole transportation route and/or at certain interconnection points.

Aim: TSOs offer OSS service to shippers who request it, cross-reference to transparency platform (GTE pilot project) and best practice cases of OSS (e.g. OMV, www.gatrac.com).

TSOs of the region are invited to join the GATRAC platform.

EFET to circulate their paper on a Regional ISO for comments.


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Priority V: Regional entry exit tariff system (REETS)

GRI REM SSE started work on a simulation of regional entry-exit tariff system and its impacts.

GRI REM SSE is working on promotion of a more cost reflective transportation pricing systems and easier market access for new shippers through a regional entry exit tariff system; role model for the whole of the EU.

Presentation of benchmarking results and simulation of introduction of REETS at the IG meeting in Maribor.

Next steps: AEEG to circulate REETS simulation study to stakeholders for comments

Responsibility: RCC


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Priority VI: Hub development as a regional balancing market

GRI REM SSE worked on introducing a back up/ back down service, day ahead products, and web-based nominations among other initiatives.

Aim: Develop hub(s) to be regional balancing points.

Progress made: - PSV: implementation of independent Market Operator for the balancing point, RCC to monitor implementation according to Action Plan.- CEGH: implementation of back-up/back-down services, RCC to monitor implementation according to Action Plan.

Next steps: Update on implementation of next steps by March 2008.

Responsibility: CEGH/EFET, PSV/EFET


Overview: Implementation of bulleting board

• Information submitted by TAG GmbH, Austria

• TSOs covered:– TAG GmbH– Eustream (formerly: SPP)– RWE Transgas net– BOG– OMV– Snam Rete Gas

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3. Progress made since last IG meeting

3.2.Conclusion of IPA/OBA

Presentation by

- TSOs, Hub Operator /CEGH

Summary of progress/Status

- [to be added]

Next steps (if any)

- Meeting of all 5 affected partiesat E-Control’s officeto discuss the CEGH proposalon: 30 or 31 January 2008at: 14:00h

Lead Regulators‘ Letterdated 16 January 2008

to BOG, CEGH, Eustream,OGG, TAG

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3.3.Promotion of one-stop-shop (OSS) services

Presentation by

- TSOs


- [to be added]

Next steps (if any)

- [to be added]To be covered

under agenda item 4.3.„R_ISO“:

Conclusions of EFET-GRI REM SSE work shop

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3.4.Hub developments as regional balancing markets: CEGH & PSV

Presentation by

- CEGH, Enel Italy


- [to be added]

Next steps (if any)

- Work to progress in line with agreed time schedules

- PSV

- CEGH

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Time schedule: Hub development: CEGH

A balancing point for the Italian gas market

A Proposal for the Action Plan

september 2007

October/December 2007

October/December 2007

March 2008

March 2008

Consultation Jan 2008

Definition March 08

Consultation April 2008

Definition May 2008

October 2008

Definition of a set of IBP TF preferences

IBP TF/ AEEG meeting

IBP TF / SRG meeting

Independent Market Operator for the balancing point

Dedicated Area on the PSV web site

Balancing Market Organisation

Balancing Market Rules

Full implementation of the market balancing mechanism

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4. Progress made since last IG meeting (cont’d)

4.1.Survey of planned investment

Presentation by

- RCC, E-Control GmbH (Austria) & AEEG (Italy)


- Presentations by stakeholders: RWE Transgas net and GTE

Next steps (if any)

- Requirements on long term planning

- TSOs and RCC to make proposalsAmendments to 3rd packaged

- Demand & Supply balanced to be provided by RCC members at a national level, in line with example provided below

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Presentation by stakeholders

Presentations by

RWE Transgas Net

GTE: Winter Outlook

AEEG: National demand

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Suggested next steps

2007 ECRB South East Europe Gas Survey, table 5, annex

Table 1.3 – Column 1 ITALY

Table 5 Demand-Supply balance for 2010, 2015, 2020: Ministry of Economic Development forecasts

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 2030 Expected Demand 88,4 90,9 93,8 96,6 99,5 101 103 105 107 108 118 128 National Production 11 10,1 9,3 8,6 7,9 7,4 7 6,5 6,1 5,8 4,2 3,5 Minimum Import need 77,4 80,8 84,4 88 91,6 93,9 96,2 98,4 101 103 114 124 Minimum Capacity needed

89 93 97,1 101 105 108 111 113 116 118 131 143

Optimal Capacity (minimum capacity+20%)

107 111 117 121 126 130 133 136 139 141 157 171

Maximum Capacity from Existent Infrastructure

87,3 91,5 91,5 92 92 92 92 92 92 92 92 92

Capacity to be built 25 29 34 38 41 44 47 49 65 79 Source: Ministry of Economic Development

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Suggested next steps

Questions to SG members

Which approach is useful for a regional long term planning?

Could the GTE approach be used as a starting point to define (a) different gas flow scenarios and (b) long term projections e.g. until 2020?

What are likely scenarios that could impact on supply/demand in the region?

- Demand side: Supply side:- Power station newbuilt - IGI (Poseidon)- Household demand - Nabucco - Industry demand - LNG Poland - Extension Transmed. - North stream

Update on situation for each country: Priorities infrastructure planning

Report/Presentation at the next IG meetingAim: To develop a better understanding for natural gas supply/demand in the region and implications for infrastructure investmentSG invited to send their comments to [email protected]

Your inputneeded!

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4.2.Comments on a Regional Entry Exit Tariff System

Presentation by

- RCC, E-Control GmbH (Austria) & AEEG (Italy)


- Paper has been provided, complementary to presentation at the last IG meeting

- Paper is available from ERGEG GRI REM SSE 2nd SG web page

Next steps (if any)

- Suggestion: Invitation to all members of the SG to comment on the paper, comments should be directed to [email protected] (CC to [email protected])by 31 March 2008

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4.3.Comments on EFET`s proposal of a Regional ISO Model as a way forward

Presentation by

- RCC, E-Control GmbH (Austria) & AEEG (Italy):Conclusions from joint workshop (21 January 2008)


- Status:EFET has released the paper, CEER has provided commentsGRI REM SSE has also been given the opportunity to comment

Next steps (if any)

- EFET will evaluate all comments and produce a revised version of the paper for presentation at the next IG meeting

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Conclusion

Conclusions of today’s workshop

- Practical examples of regional TSO cooperation already exist Identification of costs and benefits for regional market integration/of

a R_ISO based on existing examples Parallel process to 3rd Package

- Workshop identifies the following areas where regional TSO cooperation delivers the greatest benefits to market integration- Access to capacity/Congestion Management at Cross Border Points

- Management of capacities (“one-stop-shop”)- Easier access to the systems through Interconnection Point

Agreements- Harmonisation of services

- Merging of balancing zones to foster wholesale trading- Regional investment planning to remove physical congestion

- Roles and reponsibilities- Cost / Benefit analysis- TSOs: current main focus is development of European standards

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Outlook

Outlook: Next steps after today’s workshop

- EFET to evaluate all comments and draft an evaluation and conclusions paper based on the outcomes of the workshop

- TSOs are invited to make a proposal (e.g. MoU on cooperation) covering the identified issues, the envisaged structure for cooperation and a time schedule for implementation

- RCC to update progress on Regional TSO-cooperation at next IG meeting WITH ALL STAKEHOLDERS in mid-April 2008- Forms of Regulatory Cooperation

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Presentation by EFET: Market barriers in SSE

PricewaterhouseCoopers

April 2007

Participation of SEE GRI in PWC MulitClient Study

Structure of the PWC Multi Client study 2006/2007 for the Regional Electricity Market:

Austria, Czech Republic, Germany, Hungary, Poland, Slovakia and Slovenia 39 traders, with a response of 48%, research was done between June and October 2006

1. Analyse of requirements for traders for an efficient and transparent market

2. Traders where asked directly about their experience Comparison Country by Country

The survey covers following main topics:• Network access administration and bureaucratic formalities• Power exchanges and trade mechanisms• Balance Energy• Congestion Management• Market structure and Timetable• Divergent IT Platforms and Data Delivery• Overall valuation

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5. Discussion

5.2.Comments from stakeholders

Presentation by

- [to be added]


- [to be added]

Next steps (if any)

- [to be added]

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6. Closure

6.1. AOB Any AOB?

6.2. Summary of key achievements in the region In line with updates of each action point

(see above)

6.3. Outlook and next steps 30./31.1.2008: Possible date for OBA /Baumgarten meeting 17./18.4. 2008: Meeting reg. R_ISO implementation

6.4. Proposed date(s) of the next meeting 20./21.5.2008: Next IG meeting (Thessaloniki, Greece)

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1. Opening: Action points: 3rd SG meeting (1-3)

Action Description Who

AP1 Update at next meeting

Paper to be provided by TAG GmbH

Input from TSOs how often the services have been used

TAG GmbH

AP2 RCC to evaluate GTE’s methodology

All SG invited to comment whether GTE’s methodology can be used for investment planning processes

RCC to examine data availability issues; RCC to define scenarios that might impact on long term investment planning (especially w.r.t. major infrastructure projects)

RCC

AP3 TSOs to meet to discuss technical issues w/c 28th January 2008, TSOs to provide the CEGH with a list of concrete technical issues/obstacles

RCC to invite 4 Austrian TSOs and CEGH to discuss the issue further: remaining issues, potential remedies

Aim: solve technical issues

Summary of meeting to be sent to RCC

RCC

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1. Opening: Action points: 3rd SG meeting (4-7)

Action Description Who

AP4 R_ISO

AP5 Investment

AP6 RCC to invite all SG to comment on the paper

The paper is available from the ERGEG web page.

Deadline: 31st March 2008

RCC

AP7 Hub development: Development in line with proposed timetable for both hub Baumgarten and PSV

CEGH, ENEL

AP8 Market barriers:

RCC to evaluate possibilities of commissioning a study

RCC

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Conclusions and Outlook

[to be added]

Documents

3rd SG Meeting – Gas Regional Initiative (GRI) Region South-South East