Regulatory & Commercial Update - snam.it · Regulatory & Commercial Update San Donato Milanese, 11th July 2019 Daniele Savoia, Emanuele Piovesana, Alessandro Gussetti, Mario Ametrano,

Regulatory & Commercial Update

San Donato Milanese, 11th July 2019

Daniele Savoia, Emanuele Piovesana, Alessandro Gussetti, Mario Ametrano, Daniele Agosto

Agenda

Regulatory Update

Commercial Chains process evolution and provisional balance update

Capacity Booking process key points

3

Resolution 114/2019 (RTTG)

Tariff criteria for the V regulatory period for gas transmission and metering service

• The TSO is responsible for procuring the gasto cover network losses, own-gas andunaccounted-for gas (GNC)

Resolution 208/2019Gas for the operation of the system

• Definition of gas quantities for the operationof the system (Ψ) as the sum of network losses,own-gas, GNC, linepack variation, delta IO,quantities related to interconnectionagreements with domestic operators and gasstorage quantities (SOP)

• The TSO procures the gas quantities for theoperation of the system (Ψ) through open andnon-discriminatory procedures

• Introduction of TSOs’ imbalance term definedas the difference between the actual value Ψand gas quantities procured from the TSO tocover Ψ

Resolution 72/2018 (TISG)Gas settlement

• The TSO is responsible for procuring the gasto cover the difference between the dailygas volume measured at the city-gate andthe daily gas volume determined for eachShipper on the base of data communicatedfrom distribution system

Regulatory framework

SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas

AS IS AS IS (Transitional period) TO BE

Jun. 2019 Jan. 2020

• The TSO uses storage capacities to cover network losses, own-gas, GNC and linepack variation (nomination deadline in gas day D-1)

• The TSO uses storage capacities to cover network losses, own-gas, GNC and linepack variation (nomination deadline in gas day D-1) up to 55,000 MWh/d

• The TSO procures additional quantities (if any) on gas market within 7.00 pm of gas day D-1

• The TSO procures the gas quantities for the operation of the system (Ψ) through open and non-discriminatory procedures

• In case of scheduled linepackvariation the TSO can procures daily storage capacities

Gas for the operation of the system


4

Gas Day D-1 Gas Day D Gas Day D+1

Linepack ↓

Linepack ↑

• TSO procures storage injection capacity (day ahead auction) and submits a nomination for the gas day D

• TSO’s storage withdrawal

• TSO regulates gas in stock on MGS platform

• TSO procures gas in stock on MGS platform

• TSO procures storage withdrawal capacity (day ahead auction) and submits a nomination for the gas day D

• TSO’s storage injection

Example of scheduled linepack variation

5


IK + SK + TKN = PK + GSK + DSK

Shipper’s balance equationCh. 9, par. 3.1.2

• Elimination of GSk term to cover network losses, own-gas and GNC


6

TSO’s balance equationCh. 9, par. 3.1.3

IT + ST + TTN + GST = PT + C + PE + GNC + ΔLPC + BILRESID + DST

IT = IT OBA + I*T

ST = SNT + STOP

TTN = TT

PSV + TTM + TRDB

M

• The term IT OBA refers to the gas quantities related to interconnection agreements with domestic operator

• The term I*T refers to the others gas quantities injected into Entry points

• The term SNT refers to the the quantity of gas nominate at the storage hub

• The term STOP refers to the difference between quantity injected/withdrawn and

the overall quantity nominated at the Stogit storage hub

• The term TTPSV refers to the quantities purchased/sold on PSV from the TSO

• The term TTM is the net balance of the TSO’s gas transactions to cover Ψ

• The term TRDBM is the net balance of TSO’s transaction on MGAS platform 7


TSO’s balance equationCh. 9, par. 3.1.3

PT = Δsett

C + PE + GNC + ΔLPC

BILRESID = - ( ∑ DSk + DST)

• The term Δsett is the difference between the daily gas volume measured at the city-gate and the daily gas volume determined for each Shipper on the base of data communicated from distribution system

• The terms C, PE, GNC and ΔLPC refers to own-gas, network losses, unaccounted-for gas and linepack variation

• The term DSk is the shipper’s imbalance (the result of that Shipper’s balance equation)

• The term DST is the TSO’s imbalance


IT + ST + TTN + GST = PT + C + PE + GNC + ΔLPC + BILRESID + DST

• The term TTM is the net balance of the TSO’s gas transactions to cover Ψ

• The term Ψ is the sum of :

o TSOs network losses

o TSOs own-gas

o TSOs unaccounted-for gas (GNC)

o TSOs linepack variation

o TSO off-takes (Δsett)

o Gas quantities related to interconnection agreements with domestic operator

o TSO gas storage nomination

TSOs’ imbalance (DST)Cap. 9, par. 3.1.3

DST = TTM - Ψ

9


Resolution 155/2019/R/gasSettlement process

• New criteria and process for “mapping” thecommercial relationships between Shippersand users of the distribution network (univocalassociation of a redelivery point of thedistribution network to a single Shipper)

Resolution 148/2019 (new TISG)

Gas settlement

• New methodology for calculating Shipper’sprovisional gas allocations at RedeliveryPoints, consistent with the new regulationon the gas settlement with effect fromJanuary 2020

Resolution 72/2018 (TISG)Gas settlement

• Reform of the regulation on gas settlementwith effect from January 2020

• New methodology for calculating Shipper’sdefinitive gas allocations at city-gates

Regulatory framework


10

AS IS

until

Decem

ber20

19

Aggregation of annual consumptions

Before the beginning of the Thermal Year, DSOs calculate and communicate to SRG, through MGASPlatform, the value of annual consumptions (CA) at redelivery points of the distribution network,aggregated by standard consumption profile, for each user of the distribution service and for eachcity-gate

1

2

Annual consumptions profiling

SRG defines the daily gas volumes for each user of the distribution network by applying the dailystandard consumption profiles to the annual consumptions communicated from distribution system

3

Definitions of Shipper’s provisional gas allocation at city-gates

SRG calculates the daily gas volume to be allocated to every Shipper at each city-gate by:

- determining the daily gas volume for each Shipper on the base of data communicated by DSOand the "mapping" of commercial relationships between Shippers and users of the distributionnetwork operating at the city-gate;

- determining the difference between the daily gas off-takes measured at the city-gate and thedaily gas volume for each Shipper ;

- allocating this difference pro-quota to Shippers operating at the city-gate

According to Resolution 619/2013/R/gas and SRG Network Code, Chapter 9, par. 4,3,4,1


11

TO BE

from

Janu

ary 20

20

Aggregation of annual consumptions

By the 4th last day of each month, SII communicates to SRG the value of annual consumptions (CA)and standard consumption profiles at all the redelivery points of the distribution network suppliedby each Shipper, aggregated by city-gate and measurement frequency

1

2

Annual consumptions profiling

SRG calculates:

- the provisional off-takes for MG1 and MM2 redelivery points of the distribution network byapplying the standard consumption profiles and the last available Wkr factor (published by SRG by6 p.m. of the Gas day k) to the aggregated annual consumption

- the expected off-takes for MY3 redelivery points by applying the standard consumption profilesand the Wkr factor published by 11 a.m. of the Gas day k to the aggregated annual consumption

3Definitions of Shipper’s provisional gas allocation at city-gates

SRG calculates the Shipper’s daily provisional gas allocation at each city-gate as the sum ofprovisional and expected off-takes.

SRG Network Code update proposal (Chapter 9, par. 4.3.4.1, and Attachment 9/E):

1 measured on monthly basis with daily details. 2 measured on monthly basis. 3 measured with a frequency lower than monthly.

This new methodology is consistent with the determination of the definitive transportation balance according to thenew regulation on gas settlement

The difference between the daily gas volume measured at the city-gate and the daily gas volume determined for eachShipper on the base of data communicated by DSO, would no longer be allocated to the Shipper and would notcontribute to the calculation of the amounts of the guarantee.

12


Other proposals on consultation

Climatic correction factor (Wkr)

• SRG is available to publish every day the Wkr value up to the Gas day D+5, for descriptive/ illustrative purposes (not binding for the TSO)

Annual and Multi-annual Adjustment Sessions

• Increased to 5 working days after the communication of the results the time periodavailable to Shippers to notify SRG a request for correction of results due to materialerrors by SRG

Previous Annual and Multi-annual Adjustment Sessions

• Increased to 10 working days after March 15th / August 15th the time period available toDSOs to communicate any corrections to data already communicated to SRG


13

http://www.snam.it/it/trasporto/codice-rete-tariffe/Codice_di_rete/Aree/aggiornamento.html

• Consultation period : 30 days

• [email protected]

14


New criteria for transportation capacity booking at Exit Points Points andRedelivery Points interconnected with distribution network (with effect fromOctober 2020):

- automatic assignment of transportation capacity to the Shipper based on finalcustomers’ off-takes (maximum value of the standard consumption profilemultiplied by the CA associated to the redelivery point of the distributionnetwork)

- determination of the transportation capacity to be assigned to Shippers byapplying a conversion factor (z)

- transportation capacity to be assigned to each Shipper at each city-gatedefined by SII

Resolution 147/2019/R/gas

Update of regulation regarding the access to the transportation network at:

- Interconnection Points with EU member States (Incremental capacity processaccording to Regulation 2017/459)

- Interconnection Points with non-EU Countries and with LNG Terminals («OpenSeason» procedure according to Resolution 2/10)

Resolution 245/2019/R/gas

Upcoming SRG Network Code update proposals

15

2020 SRG Tariff Update

Tariffs Criteria for the 5° regulatory period (2020-2023)

General framework and guidelines(1° DCO) 413/2017/R/gas

[08/06/2017]

Tariffs Criteria for the 5°regulatory period.

Final Proposals(4° DCO) 512/2018/R/gas

[16/10/2018]

Tariffs Criteria Definition for the 5°regulatory period

Resolution 114/2019/R/GAS (RTTG)[28/03/2019]

Resolution201/2019/R/gas[ 28/05/2019]

Other DCOs

Confirmation of what we said in the Workshop of April

CV variable fee11 Will move from Entry Points to Exit Points

(Exports, Storages, Redeliveries)

CMCF to cover metering activity on the end customers redelivery points

if the measuringsystem has been

transferred to SRG

2020

12

CRVFG supplementary charges unitary commodity charges to cover the guarantee factor of revenues for regasification service

CRVFG movedto Redeliveries2020

13

2020

2020 Tariffs

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2020 SRG Tariff Update

ENTRY POINTSENTRY POINTS EXIT POINTSEXIT POINTS

2019

2020[JAN]

2020[OCT]

From Jan 2020 ONLY for tariff purposes the 6 off takesarea will become 1

From OCT 2020 ALSO for booking purposes the 6 off takes area will be eliminated

Res. 148/2019/R/gas and 208/2019/R/gas

I°• Simplification of the determination of physical and economic amounts through

aggregation of PdR withdrawals – NO RECONCILIATION

II°• Same allocation process in Provisional, Definitive and Adjustment Session Budget

III°• Supply of Deltak made by RdB

IV°• Measurement profiling and aggregation, CA calculation in charge of SII

V°• Changes of commercial chain through identification at PdR level of UdDs and UdBs

VI°• Relationship DSO-SII e SII-RdB

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Allocation process for the provisional transportation balance

𝑃 , , 𝐺 , 𝐺𝐼𝐷 , 𝑀 , 𝑌 ,

𝐺 , 𝐶𝐴 · 𝑝 ,%

𝑀 , 𝐶𝐴 · 𝑝 ,%

𝑌 , 𝐶𝐴 · 𝑝 ,%

𝑊𝑘𝑟 determined and published by Snam Rete Gas at the last useful time

for determining the provisional transportation balance

𝑊𝑘𝑟 determined and published by Snam Rete Gas at the last useful time

for determining the provisional transportation balance

𝑊𝑘𝑟 determined and published by Snam Rete Gas by 11:00 am on Gas-day G

𝑊𝑘𝑟 determined and published by Snam Rete Gas by 11:00 am on Gas-day G

By the fourth last day of each month, SII makes available to the RDB the CApdrand the SCP of each UdB of following month, with details for UdD,

aggregated by city gates and type of treatment

By the fourth last day of each month, SII makes available to the RDB the CApdrand the SCP of each UdB of following month, with details for UdD,

aggregated by city gates and type of treatment

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Reports functional to the Thermal Year 2019-2020

http://www.snam.it/it/trasporto/adempimenti-reporting-autorita/pubblicazioni/NuovoSettlement.html

Which reports?

• Percentage values necessary for the definition of SCPs for Thermal Year 2019-2020

• Climatic correction factor (Wkr)20

TY 2019/2020

ARERA Resolution 114/2019/R/GAS

For TY 2019-2020, the capacity booking processes will continue to be carried out both on the exit points of the national network and on the redelivery points

TY 2020-2021

Booking Processes Balancing Monitoring

Registry management Contractual Information Credit Limit Management

Capacity booking processes

21

Capacity Booking ProcessesCalendar

SEPTEMBERSEPTEMBER

Capacity Booking Request

submission

12/09/2019

Capacity Booking Results

communication

19/09/2019 20/09/2019

Capacity Booking Subscription

OCTOBER

10: Transfers Requests18: Validation Transfers Requests

Capacity Booking Validation

23/09/2019

Capacity Trading/ Increases Request

submission

20/09/2019

Capacity Trading Results

communication

23/09/2019

Material ErrorRequest Submission

Material ErrorCommunication

Material ErrorBooking Subscription

Material ErrorValidation

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IdDList of active

UdDs

UdBSelection of active UdDs

17 WD 2 WD before month M

Correction of errors made in the definition of Commercial

chainsFddT activation

Commercial Chain ProcessesAS IS

City GatesCity Gates

4 WD

UdDConfirmation of commercial chain

1 WD before month M

Month MMonth M-1

M-GAS

Process still active for Gas Months October – November – December 2019Process still active for Gas Months October – November – December 2019

Starting from Resolutions ARERA 147/2019/R/GAS, 148/2019/R/GAS & 155/2019/R/GASStarting from Resolutions ARERA 147/2019/R/GAS, 148/2019/R/GAS & 155/2019/R/GAS

January 2020 September 2020

UdB

Monthly Setup[Shipper – REMI association]

Month M (for Month M+1)

UdD DSO

UdB

UdB – UdDCommercial Chains

Check Results*

UdD - PdRCommercial chains

PdR registryMeter readings

UdD

Commercial Chains & Capacity Booking ProcessesJanuary – September 2020

*10°CD + 7 WD; PdR data Activ. + 11° WD; 4° CD before M+1

24

October 2020

UdB

Shipper Credit Limit

UdD DSO

UdB – UdDrelationships Results

UdD - PdRrelationships

PdR registryMeter readings

To Be Defined

Rules and Conditions forInsufficient credit limit

Wkr ; zcgBooking Proposal

Starting from Resolutions ARERA 147/2019/R/GAS, 148/2019/R/GAS & 155/2019/R/GASStarting from Resolutions ARERA 147/2019/R/GAS, 148/2019/R/GAS & 155/2019/R/GAS

Commercial Chains & Capacity Booking ProcessesOctober 2020

25

72/2018/R/gas[08/02/2018]

DCO 114/2018/R/gas[01/03/2018]

114/2019/R/gas[28/03/2019]

148/2019/R/gas[16/04/2019]

155/2019/R/gas[16/04/2019]

2020-2021 SRG Booking Processes

Settlement gas regulation reform

(i) Review of the processes for the definition of commercial relations between UdB-UdD; (ii) Review of the capacity allocation processes at the redelivery points

Tariffs Criteria for the 5° regulatory period (2020-2023)

Process update for the definition of commercial relations between UdB-UdD

New Booking Processes Starting from 01/10/2020 (only for city gates)

Off take Areas exceeding

Capacity overrun exceeding (only for city gates)

Rules & Conditions proposed to ARERA (after public consultation session) by 28/02/2020: Assessment on the calculation of zcg (considering possible groupings of city gates by area or nationally);

Possible methods of treatment of the PdRs whose capacity is mainly used outside the seasonal peak period

Settlement gas regulation reform

1)*

2020-2021 SRG Booking Processes

SRGcity gates

SRG gas network

For Every PdR (on the distribution network):

BOTTOM UP PROCESS

2)Maximum Conventional Withdrawal Conventional Transport Capacity

* Or the maximum daily withdrawal recorded during the previous 12 months in case of PdR daily metered (C2 and T1 TISG cat.)

On the Pmax the Wkr is embedded

CTC is calculated on yearly basis (considering any new activations / dismissions on the distribution network)

AU knows the UdB-UdD relationships and the UdBcredit limit

SRG calculates the capacity for every UdB

Invoicing timeline multiannual session 2014-2017

ΔDsk and ΔIO economic values

publication on PORTALE

CAPACITA’

EPSuk/MEPSuk

UpdateSRG issues the

credit/debit documents

By the first week of August (provisional)

Beginning of September(provisional)

Beginning of September(provisional)

• Credit for SRG: PDet increased by the total net amount of the ΔDsk and ΔIO

• Debit for SRG: PDet will be decreased by a quota of the total net amount of the ΔDsk and ΔIO

• The above quota is determined from time to time according to the SRG coverage (ARERA-CSEA)

28

Invoicing timeline annual session 2018

End of November2019 (provisional)

Publication of the annual adjustment session results

After counting in EPSU

SRG issues the credit/debit documents and gives Shippers the information needed to issue their invoices

SRG invoices’ due date

Shippers will pay the SRG invoices within 15 days

SRG Payment

The payment of credit document will be within 30 days (subject to SRG availability ARERA-CSEA)

Capacity overruncharges 2018

*http://www.snam.it/it/trasporto/Processi_Online/Fatturazione/procedure moduli

Shippers’ request

Deadline*:10/12/2019

Invoicing process

Credit or debitdocuments issued by December

Liquidation process

The payment of credit document will be within 30 days

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Access Contracts Office (CONT)

Email: [email protected]

Telephone: +39 02.3703.9043

Thank you for your attention!

Contacts:

Settlement Office (SETT)

Email: [email protected]

[email protected]

Telephone: +39 02.3703.9043

Regulatory & Commercial Update

Documents

Regulatory & Commercial Update - snam.it · Regulatory & Commercial Update San Donato Milanese, 11th July 2019 Daniele Savoia, Emanuele Piovesana, Alessandro Gussetti, Mario Ametrano,