Joint ACER-ENTSOG update on implementation of the Balancing NC

26th Madrid Forum16 October 2014

ACER and ENTSOG Questionnaire I

ACER and ENTSOG Questionnaire II

• Questionnaire useful for all stakeholders in the gas market: • implementation milestones and schedules for the Member States• calculation methodologies of daily imbalacing charges and

neutrality charges• methodologies of information provision, nominations and WDOS

• The Joint ENTSOG-ACER Report on the early implementation of the BAL NC is now available on ENTSOG and ACER websites:

• Link 1

• Link 2

• Information shown in the following slides is based on TSO and NRA responses in July-August 2014

Expected implementation timeline by country

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By 1 October 2015 => BAL NC implemented in 10 COUNTRIES (AT, BE, DK, FR, GB, HU, IT, LU, NL, SI)

Main challenges as perceived by TSOs and NRAs:

Implementation challenges

Investment in new IT equipment; metering changes

Extensive cooperation with NRAs, DSOs, Network Users needed

Ensuring adequate data quality and formats

Information provision

Determination of relevant Short term Standardised Products

More difficult where:•Liquidity is low;•Countries do not currently have trading platforms.

Redesign of current nomination processes (continuous re-nomination cycle)

Extensive cooperation with adjacent TSOs needed

NominationsOperational balancing

Existence of a trading platform

Nominations

• Strong efforts by the majority of MS to comply by 2015• Cross-border cooperation expected/ongoing

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Information Provision

• Strong efforts by the majority of MS to comply by 2016• Cross-border cooperation expected/ongoing

Cross Border Cooperation

Cross-border aspects may require further attention in future implementation reviews

BAL NC implementation workshop with the Energy Community in Vienna on 27 November 2014

• Cooperation between ENTSOG and the Energy Community (EnC)

• Objective: To explain the BAL NC and share knowledge regarding balancing practises focusing on CEE countries and members from the EnC

• Participants are TSOs, regulators from EU MS and EnC

• Presentations on balancing practices reflecting various market conditions: NW Europe, CEE countries and contracting parties from the EnC

• Panel discussion on implementation options

• Discussion on way forward

Conclusions

• Implementation is well underway across Europe

• Many challenges still lie ahead, but…

• …extensive discussion between NRAs, TSOs and market participants

• Limited cross border elements identified, further attention may be required

• Good cooperation seen between NRAs, TSOs, ACER and ENTSOG

• ACER and ENTSOG will build on this experience and continue to coordinate future efforts

• ACER/ENTSOG Report on the early implementation of the BAL NC will be updated in one year

Thank you for your attention!