GRI NW Investment Workshop 4 June Den Haag

Implementation of recommendation 4:

‘Make elements transparent that help achieve the investment prerequisites’

Bas Barten (GTS)

GRI NW TSO project leader

The building blocks of investment

‘Adequate fundaments like an appropriate RoR need to be in place before TSOs are able to communicate their investment prerequisites to the market’

Implementing recommendation 4

• Make elements transparent that help achieve the investment prerequisites

• TSOs willing to build market’s need for infrastructure

• TSOs eager to be transparent about publishing minimum commitments

• The investment should be economically viable and can only take place in a stable regulatory framework with tariffs that include an appropriate rate of return (as stated in art 3 of regulation 1775/2005 and art 13 of regulation 715/2009)

• Member States, Regulators and TSO need to agree on remuneration, depreciation and user commitment before TSOs can publish clear investment prerequisites to the market

TSO Minimum commitment Prerequisites Implementation

EGT min.80%>15 years max.5%<5years (last OS), future minimum commitment depends on circumstances/framework

NRA + RoR Implemented

WGT future commitment depends on framework

NRA + RoR Next Open Season

Thyssengas future commitment depends on framework

NRA+ RoR Next Open Season

GUD/GTS 10 years each shipper (Last IOS), future commitment depends on framework

NRA + RoR Implemented

Ontras future commitment depends on framework

NRA + RoR Next Open Season

DEP future commitment depends on framework

NRA + RoR Next Open Season

TSO Minimum commitment Prerequisites Implementation

Energinet.dk 70% of capacity, 10 years

NRA + RoR Implemented

Fluxys Economic test NRA+ RoR Sept 2010

Gaslink NRA and Gaslink make an investment plan

NRA + RoR Implemented

GRTGaz 10 years each shipper NRA + RoR + Test

Implemented

GRTGaz DT 10 years each shipper NRA + RoR Implemented

Swedegas Not applicable Exemption from government

Implemented

National Grid NPV Revenue over 8 years > 50 % of costs

Investment in RAB

Implemented

Thanks for your attention!