Snamretegas.it DAY-AHEAD CAPACITY ALLOCATION San Donato Milanese, 5 th - 6 th March 2013

snamretegas.it

DAY-AHEAD CAPACITY ALLOCATIONSan Donato Milanese, 5th - 6th March 2013

2

III COMMERCIAL ASPECTS AND SRG APPLICATIONS

I INTRODUCTION

II NETWORK CODE

First capacity booking

Starting feasibility study

of Capacity Portal

Starting implementation

phase of Capacity Portal

GO LIVE First booking process and transactions

Introduction of Balancing

Service monitoring

Starting day-ahead auction

3

Evolution of communication methods CAPACITY PORTALPAPER MANAGEMENT

Jul 2009Jul 2001 Sep 2008 Dic 2011 Apr 2013Jun 2006

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 -

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000 Number of managed transactions

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/120

102030405060708090

100Number of Users

I Introduction – Evolution of the Transportation Service

4

III COMMERCIAL ASPECTS AND SRG APPLICATIONS

I INTRODUCTION

II NETWORK CODE

Regulatory framework

Resolution 536/2012/R/gas of ‘Autorità per l’energia elettrica e il gas’

• Day-ahead daily capacity at Tarvisio Entry/Exit Point available from 1st April SRG

• Opened access to SRG Network Users: fulfilling with contractual Network Code obligations provided with appropriate guarantees certificate proving ownership of import contract(s) not required by the TSO

• Regulated tariff (Monthly capacity charge) on a daily basis

• SRG Network Code update proposal

• AEEG-E-Control Guideline on a day-ahead allocation mechanism at the Austrian/Italian border

5

Regulatory framework

AEEG- E-Control Guideline

Day-ahead daily transportation capacity allocation criteria (primary market):

• Daily capacity product for TSOs coordinated allocation (Bundled Daily Capacity) at the IP AT-IT border

• Interruptible capacity offered only if firm capacity is not available or sold out day-ahead

• Bundled capacity determined as the minimum available capacity between TSOs Systs

• The TSOs join a common booking platform for the capacity allocation

• Allocation held through auction mechanism according to CAM provisions

• Revenues splitted between the TSOs according to agreements approved by NRAs

• Contracts subscription with each TSO

6

Capacity allocation process

Renomination of daily programmes

SRG Network Code, Chapter 5, par. 5.4

Day-ahead daily capacity allocation at interconnections with foreign transmission Systems

SNAM RETE GAS Network Code

Capacity allocation (1)

8

CHAPTER 5

Allocation criteria

• Daily Firm capacity allocation Interruptible Daily Capacity allocation where Daily Firm Capacity not available /sold out

• Specific access requirements to transportation service

• Ability to operate on PRISMA Platform

• Capacity allocation criteria according to CAM auction mechanism using a ‘uniform price’ algorithm

Reserve Price (regulated tariff on a daily basis)

Bids selected according to the economic value up to the capacity offered by SRG; final price = price of the lowest successful bid

auction premium (unitary charge of the last accepted bid)

Clearing Price = Reserve Price + Auction premium

9

CHAPTER 5

Scope of Daily capacity allocation

Natural gas transportation capacity on SRG Network for a Gas-Day • at ALL Entry/Exit Points interconnected with foreign import/export pipelines• Firm daily transportation capacity and• interruptible daily transportation capacity if firm capacity is not available or sold out day-ahead• Capacity in Sm3/day

Daily capacity definition (each gas day ‘D-1’)

Entry/Exit Points with foreign import/export pipelines

1. Firm Daily Capacity = not allocated capacity for Gas day D2. Interruptible Daily Capacity = not nominated booked capacity for Gas day D

Tarvisio Entry/Exit point

3. Firm Daily Capacity = bundled Firm Daily Capacity + unbundled Firm Daily Capacity 4. Interruptible Daily Capacity = bundled Interruptible Daily Capacity + unbundled Interruptible Daily Capacity


B U N D L E D

TAGAvailable firm capacity

for Gas day ‘D’

Firm Daily Capacity offered by SRG

Daily capacity determination at Tarvisio: example *

SRGAvailable firm capacity

for Gas day ‘D’

• N.B. Example scheme for the sole purpose of showing the determination of unbundled capacity (surplus available at Italian or Austrian side, depending each day on the available capacity in each System)

U N B U N D L E D

Firm Daily Capacity offered by SRG

10

CHAPTER 5


Participation Requirements

• Transportation Contract with SRG• Ability to operate on PRISMA Platform• Adequate transportation service guarantee (‘Limite di Conferimento’)• Network Code obligations

condition EPSuK < MEPSuK

settlement of the payments

• Transportation Contract with TAG (for bundled capacity request, only)

• Allocation rules for the relevant IP countersigned by the concerned network users

Request • Binding request• Maximum 10 bids per auction

1. capacity to be offered 2. minimum acceptable capacity3. price (additional value as compared to the Reserve Price)

• Σ bids not exceeding the ‘Limite di Conferimento’

11

CHAPTER 5

Capacity allocation process (1)

Allocation resultAuction result Allocation result

12

CHAPTER 5

• notification to each participating party allocated capacity, and related price at the conclusion of the auction process

• publication of final aggregated allocation results

Capacity allocation process (2)

Capacity allocation through auction process• One or more auction according to

capacity on offer requests

• Bundled capacity confirmation subject to verification with the interconnected TSO

N.B. Without prejudice to the Guidelines, the allocation will be not validated in case the Network User does not subscribe the capacity contract with the interconnected TSO

Capacity allocation process


SRG Network Code, Chapter 8, par. 6.7


SNAM RETE GAS Network Code

Nomination and Renomination of daily programmes in the Gas-day D-1

14

CHAPTER 8

Confirmationof

renomination

21:30

Report ProvisionalAllocation

Data day D-1

11:30

PSV registrations

deadline

Nomination deadline

Confirmation of nomination

Renominationdeadline

12:00 13:00 19:00

D-1 t

By 21:30 of the Gas day D-1 SRG verifies the transportation programme as riformulated and notifies to the Network User the confirmed programme

By 19:00 of the Gas day D-1, the Network User can reformulate its transportation programme for the Gas day D for all SRG transmission network points

N.B. The allocation of bundled capacity by SRG does not automatically imply a capacity allocation for the interconnected systems and vice versa.

Publication of TSO information

14:00/16.00

Publication of TSO information

Publication of TSO

information

Renomination of daily programme

for Entry/Exit Storage and

Redelivery Points

14:00 17:00

G t

By 17:00 of Gas day D, the Network User can reformulate its transportation programme for the Gas day D for Entry/Exit Storage Points and Redelivery Points

Update of TSOinformation

16:00

Update ofTSO Information

19:00

PSV registrations

deadline

16:30

Deadline for presentation of

offers at the PB-Gas

20:00

15

Renomination of daily programmes in the Gas-day DCHAPTER 8

SRG network code -Updating proposal n. 18

http://www.snamretegas.it/en/services/Network_Code/Aree/Area_Aggiornamento.html

Thank you for your attention



Agenda

17

III SRG - COMMERCIAL ASPECTS AND SRG APPLICATIONS

I INTRODUZIONE

II CODICE DI RETE

• Booking process requirements

• Day-ahead daily capacity auctions timing

• Day-ahead capacity on offer

• Day-ahead capacity request

• Allocation Criteria

• Eventual capacity interruption

• Allocation results on the Capacity Portal

Agenda

18

III SRG - COMMERCIAL ASPECTS AND SRG APPLICATIONS

Booking process requirements (1/3)

Requirements for participating at day-ahead booking process

• Ownership of a Transportation Contract with Snam Rete Gas Credentials for the

access to the Capacity Portal

• Registration at PRISMA European Capacity Platform

• Presentation of appropriate transportation guarantees (Credit Limit)

• Compliance with Network Code obligations

EPSuK < 90% MEPSuK condition

Regular payments

• Subscription of a Transportation Contract with both SRG and TAG (in case of bundled

capacity request)

• Ownership of a valid Trading rule countersigned by the Users and uploaded on

Entry Allocation Portal

19


20

Credit Limit

Snam Rete Gas determines and transmits to the PRISMA Platform, on a daily basis, the Credit Limit for each User.

It will not be possible for Users to bid beyond its Credit Limit.Each bid made by Users will be accepted by the Platform only after having passed the credit limit check.

The credit limit check will not be applied to those Users holding a Credit Rating certification compliant with Snam Rete Gas Network Code.

𝑪𝒓𝒆𝒅𝒊𝒕 𝑳𝒊𝒎𝒊𝒕=𝟏 ,𝟐×𝟏𝟑𝑩𝒂𝒏𝒌𝑮𝒖𝒂𝒓𝒂𝒏𝒕𝒆𝒆−

𝑴𝒂𝒙𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 𝒇𝒆𝒆𝟑

21


Trading Rule

The Trading Rule at the Interconnection point must be entered in the Entry Allocation Portal by 10:00 of day D-1

Day-ahead daily capacity auctions timing

22

The day-ahead capacity will be auctioned through two daily sessions:• 1° session: allocation of firm capacity• 2° session: allocation of interruptible capacity

Snam Rete Gas will publish the capacity on offer for day-ahead booking process in due time for the Users requests:• on SRG website, and• on the PRISMA Platform (capacity will be converted in KWh/h)

Nomination for Gas Day D

Pubblish capacity on offer and 1°

session auctions

Comunication of 1° session

auctions results

Pubblish capacity on offer and 2°

session auctions

Outcome of matching process

Comunication of 2° session

auctions results

Renomination for Gas

Day D

Outcome of matching process

13:00 15:00 16:30 – 17.00 17:30 17:30 – 18.00 18:30 19:00 21:30

Day-ahead capacity on offer

1° session – Snan Rete Gas offersFirm daiy capacity

firm unbundled

2° session – Snan Rete Gas offersInterruptible daily capacity

(Only in case firm capacity is not available or sold out)

firm bundled

Interruptible bundled

Interruptible unbundled

23

Day-ahead capacity request

Request• Binding• Max 10 bids for each auction

1. Maximum Capacity 2. Minimum Capacity3. Price offered (on top of the Reserve Price)

• Total economic value of bids must be within the Credit Limit

During each day-ahead auction Users can:• submit up to 10 bids for each capacity product on offer (capacity-price);• amend and/or withdraw the bids already submitted;• indicate a minimum capacity amount that Users is willing to be allocated

in case the Maximum Capacity is not fullfilled.

24

Allocation Criteria

25

Uniform Price algorithm:

• ranking of all bids according to their prices, the highest price ranking first;• Users bids are awarded in the given order until the amount of available capacity is

reached;• the clearing price of the auctions is determined as the price of the last awarded

bid;• the pro-rata allocation applies only between equally ranked bids that cannot be

fully satisfied.

The total price that will be charged to each winning User is equal to:• the sum of the clearing price and the regulated tariff; or• the regulated tariff, in case the total capacity demand is equal or less than the

offered capacity.

26

The re-nomination made by 19:00 is open to all Users, also to those Users not participating in the auctions.

• The capacity not nominated by 13:00 and assigned as interruptible in the second auctions session, can be re-nominated by both the original Users and the Users that have been awarded in the 2°session.

• If the total nomination will exceed the technical transportation capacity, the interruptible capacity allocated in the 2° session will be interrupted on a pro-rata basis to the awarded Users, taking into account their re-nominations.

• In case of interruption, the total charge will be applied only on the capacity not interrupted.

Eventual capacity interruption

Nomination for Gas Day DComunication of 1° session

auctions results Outcome of matching

processRenomination for Gas Day

D

13:00 15:00 16:30 – 17.00 17:30 17:30 – 18.00 18:30 19:00 21:30

Allocation results on the Capacity Portal (1/2)

27

On the Capacity Portal of Snam Rete Gas it will be made available a dedicated report through which each User can have access to the following information:

• auction results for each network point and capacity product;• available capacity offered by Snam Rete Gas;• submitted bids of its own company;• awarded bids of its own company;• clearing price and regulated tariff;• capacity timeframe;• eventual amount of interrupted capacity after the renomination process.

Allocation results on the Capacity Portal (2/2)

28

SNAM RETE GAS S.p.A. Cod.: 0020003054

Offer ID +Utente: Daniele Capizzi Deal ID +

Auction ID +Direction Entry - Entry Point interconnected with foreign pipeline +

Point Tarvisio - 35718301 +MENU' Shipper +

Home Valid From - Valid To (Timeframe) 01/06/2012 01/06/2012 + Processi di Conferimento e transazioni Offer Status Not Assigned + + Reportistica Request Status Not assigned + Gestione Anagrafica + Altre funzionalità + Accesso Regime Bilanciamento + Aste di Capacità Execute - Report Storico Assegnazioni AsteLINK UTILI

WWW.SNAMRETEGAS.IT

Auctions Report

Help On Line

Snam Rete Gas S.p.A. 2009 - Partita IVA IT: n. 10238291008

Thank you for the attention

Commercial aspects and applications

http://www.snamretegas.it/en/services/Thermal_Year_2012_2013/Conferimento_Transizione_Capacita_inizio_A_T/conferimenti_capacita_giornaliera_day_ahead.html





Shipper Training Session

San Donato Milanese,

5 & 6 March

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Agenda

1 Welcome

2 Basic Principles of PRISMA

3 Role Definitions

4 Registration

5 Capacity Products

6 Booking Process

6.1 Uniform Auction Process (Day-Ahead)

6.2 Bundled Products Booking Process

05&06.03.2013 | Chart 32


WelcomeThe new platform

PRISMA stands for an integrated European PRImary and Secondary MArket

05&06.03.2013 | Chart 33


Agenda

1 Welcome


3 Role Definitions

4 Registration

5 Capacity Products

6 Booking Process



05&06.03.2013 | Chart 34


Basic principles of PRISMAPRISMA shareholders

Following TSOs are shareholders of PRISMA: Austria: BOG, Gas Connect Austria, TAG Belgium: Fluxys Belgium Denmark: Energinet.dk France: GRTgaz Germany: Bayernets, Gastransport Nord, Fluxys Tenp, Gascade

Gastransport, Gasunie Deutschland Transport Services, GRTgaz Deutschland, Nowega, ONTRAS, Open Grid

Europe, terranets bw, Thyssengas Italy: Snam Rete Gas The Netherlands: Gasunie Transport Services

PRISMA is an open cooperation that allows all European TSOs to participate in the cooperation

05&06.03.2013 | Chart 35


Basic principles of PRISMABackground of the initiative

Foreseeably in 2015, the Network Code on Capacity Allocation Mechanisms (developed by ENTSOG) will come into force for all European countries.

The goal of the platform is an early implementation of the Network Code on CAM The new platform will serve for the booking of primary capacity products on all IPs of

adjacent Entry Exit Systems in accordance with CAM.

- Primary market features for points out of the scope of CAM can be envisaged.

- In addition the platform will be able to handle regional regulatory specifics of different countries (e.g. FCFS).

The partners are also working on the secondary market functionalities to be offered on the new platform.

April 2013, GO-live of initial platform, releases with new features foreseen in the future

Not all of the products will be available right away

Until NC CAM comes into force the platform will also handle regional regulatory specifics of different countries

05&06.03.2013 | Chart 36


Basic principles of PRISMATimeline PRISMA primary

PRISMA creation, New websites & Additional registration information on the platform

2013Jan

Registration start for European TSOs

Feb

Launch of the European Capacity Platform PRISMA& auction start

April

First Yearly Auction on PRSIMA primary*

May

Start of rolling Month-Ahead and Day-Ahead auctions*

2014 2015

Start of Within-Day Auctions**

First Quarterly Auction on PRISMA primary*

June

* Restrictions of TSOs can be seen in separate Interconnection Point Overview that will be available in the download section of the platform** Start of within-day auctions scheduled for 2014 but not fixed yet

05&06.03.2013 | Chart 37


Basic principles of PRISMAApplication of ENTSOG Capacity Allocation Mechanisms (CAM)

CAM applies to all interconnection points between adjacent Entry/Exit Systems (EE IPs)

Standard Products regarding auction calendar:

Annual Yearly (first auction envisaged: May 2013 (extraordinary with some TSOs),

March 2014 (ordinary)

Annual Quarterly (first auction envisaged: June 2013)

Rolling Month-Ahead (first auction envisaged: April 2013)

Rolling Day-ahead (first auction envisaged: April 2013)

Within-Day (foreseen first auction earliest 2014/2015)

Domestic Points can be marketed on the platform on FCFS Basis, if needed

FCFS process part of the platform

Firm and Interruptible Products will be auctioned at EE IPs

Interim period until CAM becomes effective due to national legislation possible

05&06.03.2013 | Chart 38


Basic principles of PRISMAMarketing structure

TSO 1 TSO 2

Capacity Platform

Booking TSO 1

AuctionTSO 3

RegistrationTSO 1, TSO 4

AuctionTSO 1

Booking TSO 4

Shipper A Shipper B

The platform offers two different market models (auctions and first-come-first-served bookings). Additionally, standardized registration, network and contract information services are available.

… TSO N

05&06.03.2013 | Chart 39


Basic principles of PRISMAOverview of the functionalities of PRISMA primary

PRISMA Platform

Execution of auctions

Shipperregistration

BookingOverview of inter-

connection points

Overview of auctions

Display of free

capacities

Processing of auction

results

AuctionsFCFS Bookings

Booking request to

TSO

Display of contract positions

Capacity Bundling,Upgrade,

Surrender

05&06.03.2013 | Chart 40


Agenda

1 Welcome


3 Role Definitions

4 Registration

5 Capacity Products

6 Booking Process



05&06.03.2013 | Chart 41


Role DefinitionsPlatform Roles

PlatformOperator

TSO Shipper Everyone

PlatformAdmin

TSOAdminTSOUser

User Guest (unregistered)

Guest (unregistered) Everyone – No registration and login is required. Guests can look at all the published data as well as at

all publicly available information.Shipper User

Shipper role with the right to trade capacities with the TSOs. A shipper can have multiple users.TSO User

Role for performing non-configurative tasks for the TSOs like activating/deactivating transport customers.

TSO Admin Admin role for the configuration of TSO specific values and the management of documents.

Platform Admin Super user of the platform used for support and operations. This user can not trade.

05&06.03.2013 | Chart 42


Role DefinitionsRole rights matrix

Rights

Guest

Shipper user

Public areaViewing public area/ pages x x

Viewing master data of interconnection points x x

Viewing booking relevant data x x

Viewing auction data x x

Starting a FCFS booking request x x

Bookings and AuctionsBooking via FCFS x

Submitting/ editing bids in auctions x

Saving auctions within the dashboard x

Returning capacity x

Viewing contract positions x

Administration of user accounts and assignmentsEditing (own) shipper data x

Removing (own) shipper user-TSO-assignment x

Editing(own) user data x

Deactivating (own) account x

05&06.03.2013 | Chart 43


Agenda

1 Welcome


3 Role Definitions

4 Registration

5 Capacity Products

6 Booking Process



05&06.03.2013 | Chart 44


RegistrationThe Registration Process

A single user of a shipper can only acquire transport capacities on the

platform and on behalf of their company once they have been activated by

the respective TSO.

Users of a shipper who would like to join the platform have to pass the

registration process.

If a shipper company is not yet registered, the registration of the shipper

takes place with the registration of its first user. A separate registration of

the shipper company is not possible.

If no longer needed, the shippers as well as their users can be deactivated

In order to register to the platform shippers need an EIC Code

After a registration the user receives a personal account and token. The account must not be shared with other company members and the

token is not transferrable to other users!

05&06.03.2013 | Chart 45


RegistrationRegistration facts for the new platform

Does a shipper already registered to TRAC-X primary have to re-register to PRISMA primary?

Customers successfully registered to the former TRAC-X primary do not have to re-register to PRISMA primary

But: shippers need to submit additional information to allow the platform to comply with European standards for shipper identification

EIC Code (substitutes DVGW-Code as primary key) VAT Number IBAN BIC

After logging in with the usual authentication method (user name, token-code) the platform will ask for the additional information.

An EIC Code can be obtained at the Central Office or one of the national offices. For a full list, see http://www.eiccodes.eu

Please note that you will need to enter this information until 15th March 2013, otherwise you will not be able to book capacities on PRISMA primary from 1 April 2013.

05&06.03.2013 | Chart 46


RegistrationProcess model

Shipper

PRISMAprimary

Registration request(online)

Entering Identification

Code

Manual Evaluation

of EIC/other codes

Does the company already exist on

PRISMA?

Entering extended

master data (for a new company)

Adding master data (user-based)

Accepting PRISMA primary GTCs

Selecting TSOs

Forwarding customer

master data to TSO*

Adding shipper data in system

no

TSOChecking mandate /

credit rating

Activation

Activating shipper user for TSO on

PRISMA primary

Providing TSO specific documents (mandate/

credit rating)*

Filling out and sending TSO specific documents

Accepting GTCs of TSO (link to TSO homepage)

* When requested by TSO

05&06.03.2013 | Chart 47


RegistrationUser interface

In case a shipper is not yet registered on PRISMA primary, the registration of the shipper takes place with the registration of the first shipper user.

A separate registration of the shipper company is not possible.

Enter EIC Code

1

2

Information to apply for an EIC Code

05&06.03.2013 | Chart 48


Enter company data1


Step 1: Check and complete the company data

05&06.03.2013 | Chart 49



Step 2: Check and completion of the contact persons

Add more contacts for the shipper company (e.g. Dispatching, Billing). It is mandatory to add at least one contact per category.

Enter the details of further contact persons

1

2

3

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Step 3: Enter the user details

Enter user details

1

2

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Step 4: Select one or more TSOs

Alternative 1: Select all TSOs

Alternative 2: Select individual TSOs

SNAM Rete Gas S.p.A.

For a successful registration the GTCs of the selected TSOs need to be accepted

05&06.03.2013 | Chart 52



Step 5: Check your entered data and enter national identifiers

Enter national identifier codes, e.g. DVGW code (depends on the TSOs you selected).

2

Checking the entered information

1

Snam Rete Gas

05&06.03.2013 | Chart 53



After the registration you will receive a registration confirmation by PRISMA You will be informed about more required documents for the TSOs

05&06.03.2013 | Chart 54


RegistrationFinalise registration & following steps

The shipper user sends all required documents to the TSO (set by each TSO: e.g. mandate/ solvency check).

1

2

3

Checking mandate /

credit rating

Filling out and sending TSO specific documents

Activation

Activating shipper user for TSO on PRISMA primary

… 1

2

3

The TSO checks the documents and activates the shipper user.

With activation by the first TSO the shipper will be sent a token (electronic PIN generator) with which the user can log onto PRISMA primary.

The shipper user is now able to trade on the primary capacity platform.

05&06.03.2013 | Chart 55


Agenda

1 Welcome


3 Role Definitions

4 Registration

5 Capacity Products

6 Auction Booking Process

6.1 Uniform Auction Process (Day-Ahead))


05&06.03.2013 | Chart 56


Capacity ProductsGeneral

There are yearly, quarterly, month-ahead and day-ahead products. Where possible capacity will be bundled. Firm and interruptible capacity will be auctioned Interruptible capacity can be converted to firm capacity Return/surrender of firm capacity is possible*

* At the moment not relevant in the Italian market

05&06.03.2013 | Chart 57


Capacity ProductsGeneral

All products are auctioned at predefined (different) points in time that can be found in the auction calendar.

The publication of the specific products which will be auctioned takes place in due time before the auction starts (1 month for annual products, 1 week for quarterly and monthly products, no advance publication for day-ahead products).

There are two different algorithms for actions: the ascending clock auction algorithm for yearly, quarterly, and month-ahead products and the uniform-price algorithm for day-ahead products.

The ascending clock auction takes place in at least one bidding round (is the demand in the first bidding round higher than the capacity offered more bidding rounds will be used).

The duration of an ascending clock bidding round is one hour (exception: duration of the first bidding round is three hours)

The number of bidding rounds in an ascending clock auction that are needed until an allocation is possible depends on the course of the auction.

Day-ahead capacity is auctioned in a single bidding round via the uniform price algorithm

Interruptible capacity auctions are optional until NC CAM comes into force and are until then subject to national variations

05&06.03.2013 | Chart 58


Capacity ProductsAuction types

Monthly, Quarterly and Yearly products are auctioned by using an ascending-clock auctioning process

Auctioning takes place in (multiple) bidding rounds.

In each bidding round a bid for a certain quantity of capacity at a given price is submitted.

The price steps are determined by the platform.

Day-Ahead products are auctioned in a process using the uniform-price algorithm

There is only one bidding round.

A shipper can submit up to 10 bids per auction.

The platform evaluates all bids in a descending-order according to their price.

The lowest price of all awarded bids is considered the clearing price.

05&06.03.2013 | Chart 59


Capacity ProductsAuction Times Overview

Product Frequency of auctions

Number of products per

auction

Start of the auction

Bidding round Publication amount of capacity

Publication of allocation results to

individuals

Auction algorithm

Auction Calendar for firm capacity products

Year

annual

Y1 to Y151st Monday

of March First round 3h:09:00-12:00

Then 1h:13:00-14:00 15:00-16:00 17:00-18:00

1 month before the auction

starts*no later than

next business day *

Ascending Clock auctionQuarter Q1 to Q4

1st Mondayof June 1 week before

the auction starts *Month monthly M1 3rd Monday

Day daily D1 16:30 16:30-17:00 * 16:30no later than 30 minutes *

Uniform Price auction

Auction Calendar for interruptible capacity products

Y,Q,M see above see above

The day after closure of

respective firm product 09:00.

see above

The day after closure of

respective firm product (7:00)

no later than next business

day *

Ascending Clock auction

Day daily D1 17:30 17:30-18:00At the time the auction

starts

no later than 30 minutes *

Uniform Price auction

*09:00 *after closing of the bidding round

Time zone for all times: CE(S)T – Central European (Summer) Time

05&06.03.2013 | Chart 60


Capacity ProductsAuction Calendar for Day-Ahead Products

Marketing of day-ahead D+1 (e.g. Tue for Wed)

constantly

D for D+1

t

MarFeb Apr May

Parameter Calendar entry Valid for:

Publication FIRM: On the day of the auction until 16:30 CE(S)T

INTERRUPTIBLE: On the day of the auction until 17:30 CE(S)T

D+1

Start of auction FIRM: Recurring daily 16:30 CE(S)T INTERRUPTIBLE: If offered, daily 17:30 CE(S)T

D+1

First auction 01 April 2013 02 April 2013

05&06.03.2013 | Chart 61


Capacity ProductsBidding rounds

Day 1:

09:00 – 12:001st bidding round

12:00 – 13:00processing & publishing

13:00 – 14:002nd bidding round

14:00 – 15:00processing & publishing

[…]

17:00 – 18:00 4th bidding round

As of day 2:

09:00 – 10:005th bidding round

10:00 – 11.00 processing & publishing

[…]

17:00 – 18:00x bidding round

Yearly, quarterly and monthly products Day-Ahead products

Single-step approach (uniform price auction algorithm)

Start 16:30 Bid-list allowing max. 10 additive

bids „Fill-or-kill“ option subject to

minimum amount condition Pro-rata allocation in case of

equally-ranked bids Price increment € 0,00001 Same price for all successful

bidders

05&06.03.2013 | Chart 62


Capacity ProductsAuction calendar

The auction calendar can be found in the customer centre The auction calendar gives an overview of the auction starts and the auction

publication dates as well as the transport duration of the products

The overview of the different dates can be filtered by products

05&06.03.2013 | Chart 63


Agenda

1 Welcome


3 Role Definitions

4 Registration

5 Capacity Products

6 Booking Process



05&06.03.2013 | Chart 64


Booking ProcessOptions for booking capacity

Two possibilities to book capacities on PRISMA primary: At Interconnection Points (Market area interconnection points and Cross-Border

points) firm capacity is marketed via auctions. Interruptible capacity will, until NC CAM comes into force, only be offered by

some TSOs via auctions. The German TSOs still offer to book capacities according to the “first-come-first-

served“ principle (FCFS) at points to end consumers, production and storage facilities (Grid Access Points). Furthermore, you can book interruptible capacities according to the FCFS principle at German Interconnection Points.

Different possibilities to start one of the booking processes: Auction overview : From a list of all available auctions you can directly access

the screen for submitting a bid for a certain auction (booking process I)

Master data browser for interconnection points: see next slide

05&06.03.2013 | Chart 65


Booking Process

The master data browser can be found in the section „Network Information“

Search for network points according to certain criteria

Displays the different possible actions that are available at a specific network point

Master data browser for interconnection points

05&06.03.2013 | Chart 66


Booking ProcessMaster data browser for interconnection points

When you select an interconnection point all details of this point are displayed. In case of a bundled interconnection point a link will guide you to the two involved

unbundled interconnection points.

Snam Rete Gas

Tarvisio

Entry

Snam Rete Gas

Italy

0

05&06.03.2013 | Chart 50

05&06.03.2013 | Chart 67


Agenda

1 Welcome


3 Role Definitions

4 Registration

5 Capacity Products

6 Booking Process



05&06.03.2013 | Chart 68


Uniform Auction Process (Day-Ahead)Process map

Evaluate available capacity

Design standard products

Transfer to platform

Start auction

Pla

tfor

mT

SO

Submit a bid

Evaluate bidding round

Send result to TSO and

Shipper

Publish result

Book capacity and setup contract

Receive confirmation

Shi

pper

05&06.03.2013 | Chart 69


Uniform Auction Process (Day-Ahead)Day-Ahead bidding process

A2

Placing bids

A1

amount

surcharge

amount

B1

B2

surcharge

B3

Bidder A Bidder BAvailable capacity

Available capacity

Price component of

a bid

Volume component of

a bid

05&06.03.2013 | Chart 70



A2

Placing bids

A1

amount

surcharge

amount

B1

B2

surcharge

B3


Available capacity

Minimum amounts

Price component of

a bid

Volume component of

a bid

05&06.03.2013 | Chart 71



A2

Placing bids

A1

amount

surcharge

amount

B1

B2

surcharge

B3


Available capacity

A1

amount

Available capacity

B1

B2A2

surcharge

B3

Ranking according to price components

05&06.03.2013 | Chart 72



Determination of the Clearing Price

A1

Available capacity

B1

B2A2

surcharge

B3

Example 1: Fill-or-kill: „fill“

05&06.03.2013 | Chart 73




A1

amount

Available capacity

B1

B2A2

surcharge

B3

A1

amount

B1

B2A2

surcharge

B3

Available capacity

X B2 = equilibrium bid Minimum amount < rest B2 filled

B3: price component < clearing price No consideration of B3


05&06.03.2013 | Chart 74




A1

amount

Available capacity

B1

B2A2

surcharge

B3

A1

amount

B1

B2A2

surcharge

B3

Available capacity

X B2 = equilibrium bid Minimum amount < rest B2 filled

B3: price component < clearing price No consideration of B3


Clearing price = price component of B2

05&06.03.2013 | Chart 75




A1

amount

Available capacity

B1

B2A2

surcharge

B3

Example 2: Fill-or-kill: „kill“

05&06.03.2013 | Chart 76




A1

amount

Available capacity

B1

B2A2

surcharge

B3

A1

amount

B1

B2A2

surcharge

B3

B3 = equilibrium bid Full allocation

B2: Minimum amount > rest B2 killed


X

Available capacity

05&06.03.2013 | Chart 77




A1

amount

Available capacity

B1

B2A2

surcharge

B3

A1

amount

B1

B2A2

surcharge

B3

B3 = equilibrium bid Full allocation

B2: Minimum amount > rest B2 killed


X

Clearing price = price component of B3

Available capacity

05&06.03.2013 | Chart 78




A1

amount

Available capacity

B1

B2

A2

surcharge

A3

Example 3: Pro-rata allocation between equally ranked bids

05&06.03.2013 | Chart 79




A1

amount

Available capacity

B1

B2

A2

surcharge

A3

A1

amount

B1

B2

A2

surcharge

A3

Pro-rata allocation between B2 and A3 as long as minimum amount condition is fulfilled for both bids


Available capacity

05&06.03.2013 | Chart 80




A1

amount

Available capacity

B1

B2

A2

surcharge

A3

A1

amount

B1

B2

A2

surcharge

A3

Pro-rata allocation between B2 and A3 as long as minimum amount condition is fulfilled for both bids


Clearing price = price component of B2 or A3 respectively

Available capacity

05&06.03.2013 | Chart 81



Determining the Clearing Price

A1

amount

B1

tariff / surcharge

Clearing price in case of no intersection between demand curve and available capacity

Available capacity

Clearing price = starting price

In general, the market clearing price equals the price component of the lowest successful bid

In case no intersection between demand curve and supply curve (available capacity) exists, the starting price of the respective auction (e.g. regulated tariff) will be considered as the clearing price

05&06.03.2013 | Chart 82


Uniform Auction Process (Day-Ahead)Details of a Day-Ahead auction

For day-ahead auctions a simplified auctioning method is used. This means that there is only one bidding round in which you enter the desired

capacity that you are prepared to buy up to a certain price. It is possible to place up to 10 bids per shipper for a day-ahead auction.

Enter your bid

Enter your maximum capacity amount

Enter your minimum capacity amount

05&06.03.2013 | Chart 83


Uniform Auction Process (Day-Ahead)Comfort Function for Day-Ahead auctions

By using the so-called day-ahead comfort function you have the possibility to submit bids for day-ahead auctions in advance.

The comfort function can be started from the auction details screen or from “Comfort bids” in the “My PRISMA primary” section

Creating a new comfort bid in advance

05&06.03.2013 | Chart 84


Uniform Auction Process (Day-Ahead)Comfort Function for Day-Ahead auctions

When using the comfort function for day-ahead auctions you have to select a time period during which you want to automatically use your defined bid for certain day-ahead products.

Entering a time period in which a bid is placed automatically for a day-ahead product

05&06.03.2013 | Chart 85


Agenda

1 Welcome


3 Role Definitions

4 Registration

5 Capacity Products

6 Booking Process


6.2 Booking Process for Bundled Products

05&06.03.2013 | Chart 86


Booking Process for Bundled ProductsBundled capacity process

[ ]

PR

ISM

AT

SO

1S

hip

per

* Bilateral coordination

between TSOs

Upload raw data or

standard product

Create & match bundled and unbundled products

Assign products to auction

roundsStart auction

Send result to shipper and

TSO

* Bilateral coordination

between TSOs

Upload raw data or

standard product

Receive auction result

Bookcapacity

Bookcapacity

Setupcontract

Setupcontract

Receive contract from

TSO 1

Receive contract from

TSO 2

TS

O 2

05&06.03.2013 | Chart 87


Booking Process for Bundled ProductsBundled capacity: tariffing

The payable price after auction consists of:

Regulated capacity

tariff TSO 1

+ Additional fees TSO1

+ Regulated capacity

tariff TSO2

+ Additional fees TSO2

= Starting price

+ Auction premium

(Surcharge through

price steps)

= Payable price for

shipper

division factor between TSO1 & TSO2

(default 50% / 50%)

information from TSOs

05&06.03.2013 | Chart 88


Booking Process for Bundled ProductsAuction Details

The bundling of capacities takes place at all possible interconnection points In case of a bundled auction you will be informed about it in various places The way a bundled product is displayed is different that of an unbundled product

2 interconnection points, market areas, TSOs, capacity types, prices etc. are shown

05&06.03.2013 | Chart 89


Booking Process for Bundled ProductsSubmitting a bid

When submitting a bid for a bundled product you have to accept the GTCs for each TSO and enter (optionally) a balancing group / portfolio code for each TSO.

Enter a balancing group for TSO 1 (depending on the TSO optional or mandatory)

Enter a balancing group for TSO 2 (depending on the TSO optional or mandatory)

Accept the GTCs of TSO1 & TSO 2

05&06.03.2013 | Chart 90


ContactContact information

Information before registering on the platform

PRISMA Hotline Tel.: +49 341 699 2990 66 [email protected]

For technical issues after registration

User Help Desk Tel.: +49 341 699 2990 69 [email protected]

For TSO related issues Please call your individual TSO contact

Thank you!

Documents

Snamretegas.it DAY-AHEAD CAPACITY ALLOCATION San Donato Milanese, 5 th - 6 th March 2013