Gas Documents and Reports See Public Consultation section for open or expired consultations.

Calculation of Available Capacities - December 2007

On 15 June 2007, ERGEG launched a public consultation on Calculation of Available Capacities: Understanding and Issues – An ERGEG Public Consultation Paper [C06-CAP-06-03]. This public consultation focussed on the understanding of the various aspects of capacity calculation as a previous exercise before determining the need for and the issues to be potentially addressed by guidelines for capacity calculation.

On 12 December 2007, ERGEG has published two documents resulting from the public consultation on capacity calculation: (i) An ERGEG Evaluation of Comments Paper [C06-CAP-06-03.a]; and (ii) An ERGEG Conclusions Paper [C06-CAP-06-03.b]. Findings from these papers show a general support to ERGEG’s approach to capacity calculation as common basis for developing guidelines. In light of these findings, ERGEG will in 2008 start working on drafting guidelines for good practice in the area of calculating available capacities.

This benchmarking report drafted by independent consultants of the Cambridge University reviews possible methods for comparing the efficiency of European gas transmission operators.

The report assesses the relative efficiencies of four European gas TSO’s using a variety of cost data, output variables and methodologies. The efficiencies of European TSO’s are also compared with those of US operators. The report provides with recommendations for the application of benchmarking to gas transmission in Europe focusing is aspects such as data collection, data comparability, benchmarking variables and benchmarking techniques. The report concludes that more robust benchmarking results cannot be obtained without long-term commitment to build appropriate databases, and that an agreement is needed on standardisation of data to be collected from TSOs.

ERGEG has prepared a Conclusion paper assessing the results of its public consultation on secondary markets (E07-GFG-22-14b). ERGEG received 16 responses out of which 14 were non-confidential and two confidential. The list of respondents showed a good mix of different market participants across all steps in the gas value chain. Findings of this paper show that stakeholders: (i) broadly agree that improvements in secondary markets mechanisms are both necessary and possible all over the EU; (ii) support the establishment of a central platform for anonymous trading with bundled products; and (iii) believe that improving primary capacity markets is a prerequisite for a well functioning secondary market.

In light of these findings, ERGEG has concluded that improvements are needed in : (i) the design of and facilitation by TSOs of secondary markets; and (ii) the overall utilization rate of primary capacity rights and the amount of recycled capacity put in the market.

Following the publication of the Compliance with Transparency Requirements of Gas Regulation 1775/2005/EC - An ERGEG Monitoring Report (E07-TRA-02-03), ERGEG has prepared the Additional Transparency Requirements – An ERGEG Monitoring Report (E07-TRA-02-03b) after a request by the European Commission to explain why compliance with the legally binding transparency provisions of the Gas Regulation were unsatisfactory. ERGEG’s additional monitoring confirms the findings of the first monitoring report and concludes that: (i) comprehensive and complete implementation of regulation 1775/2007/EC needs to be ensured by competent authorities in an effective manner; (ii) additional transparency requirements are needed to ensure fair TPA to LNG facilities, storage and interconnectors; (iii) Commission explanatory notes are not regarded as obligatory by most TSOs; (iv) current sanctions mechanisms are mostly ineffective. ERGEG’s 3rd Package paper 6 on Transparency (C07-SER-13-06-6-PD) proposed several amendments to the gas regulation 1775/2005/EC and made some recommendations beyond existing regulation on LNG, Storage and balancing.

ERGEG has been asked to submit to the Commission its view on Art. 22 EC/2003/55 and a possible change of the legal framework with respect to investment issues. This paper summarizes the results of ERGEG’s questionnaire on Art. 22 experience and on established and/or already applied criteria for dealing with Art. 22 applications.

This report assesses the potential impact of making the ERGEG Guidelines for Good Practice for Gas Balancing (E07-GFG-17-04) binding. The report notes that the quantitative impact of making the GGPGB binding cannot be assessed in a straightforward manner because the Guidelines are quite flexible and do not set out explicit requirements for change. However, where possible potential costs could be incurred these are not expected to be significant in relation to the benefits that would be realised from a more efficient, effective and consistent balancing mechanisms across the EU. 

Compliance with Transparency Requirements of Gas  Regulation 1775/2005/EC - An ERGEG Monitoring Report - July 2007

This report monitors the transparency requirements outlined in Gas Regulation 1775/2005/EU using the 15 April 2007 as a cut-off date (where applicable) for 43 European TSOs. Overall compliance is unsatisfactory, and particularly so for contracted and available capacities and the historical flows.  ERGEG’s view is that the existing transparency requirements in the Gas Regulation are not sufficient to facilitate the development of an efficient and effective market, and has advised the European Commission on the changes needed in the 3^rd legislative package to allow improvements in transparency.

This benchmark study compares transmission tariffs and balancing penalties of six European TSOs. Findings of this Report show that there are still large differences in tariffs and balancing penalties of transmission networks.  The report underlines the lack of transparency in this area and notes that the differences may hamper trade across transmission networks. 

Here is the final ERGEG Guidelines for Good Practice on Open Season Procedures (GGPOS).

The consultation paper and responses by stakeholders are also available in the Public Consulation section.

Here is the final ERGEG report on transmission pricing (for transit) and how it interacts with Entry-Exit systems.

After a public consulation process, this report identifies key requirements on how transmission pricing for cross border transport (transit) and regulated entry-exit systems could encourage competition and support a competitive market for natural gas.

The consultation paper and responses by stakeholders are also available in the Public Consulation section.

Here are the final ERGEG Guidelines for Good Practice for Gas Balancing (GGPGB) and the evaluation of the comments received of 6 December 2006.  

The GGPGB represent ERGEG’s advice to the European Commission on its interpretation of Article 7 of the Gas Regulation. 
They are applicable from their publication date (15 December 2006) and compliance is fully requested by 1 April 2007. 

ERGEG has developed the GGPGB through extensive and transparent consultation with market participants. 

Earlier, in July 2005, ERGEG published the “Gas Balancing paper” for consultation. The consultation set out the key issues associated with gas balancing and requested comments on proposed changes to the 2003 CEER high level gas balancing principles. This paper also proposed, based on the high level principles, the development of more detailed Guidelines for Good Practice for Gas Balancing (GGPGB). 

In April 2006, an initial draft of the Guidelines for Good Practice for Gas Balancing (GGPGB), along with an ERGEG conclusion paper, was launched for a second public consultation by 20 June 2006, leading to these final guidelines.

On 7 December 2006, the ERGEG published the Final 2006 Report on Monitoring the Implementation of the Guidelines for Good TPA Practice for Storage System Operators (E06-GFG-20-03).

The 2006 reports shows that compliance with the voluntary gas storage guidelines (GGPSSO) remains unsatisfactory in key areas such as transparency, non-discriminatory treatment of storage users and congestion management mechanisms.  Regulators also underline the need for levelling national regulators’ competences in this respect.

ERGEG has recommended to the European Commission the need for legally binding rules for storage system operators to ensure non-discriminatory access to storage.  (See press release PR-06-13)

As requested by the 10^th Madrid Forum in 2005, ERGEG undertook this second monitoring exercise.  ERGEG requested SSOs to update their 2005 responses and fill in a new questionnaire. In addition, each ERGEG member (i.e. national regulator) with storage facilities within their jurisdiction filled out a short national report on storage (“Storage National Report”). These reports focused on those GGPSSO requirements which are easier to monitor at national level, e.g. confidentiality requirements and capacity allocation/congestion management mechanisms. 

All SSOs’ responses and regulators’ report are available at the XIth Madrid Forum folder.

For further information on the ERGEG monitoring exercises on gas storage, download:

This study on Third Party Access to LNG terminals, conducted by NERA Economic Consulting, provides an input to the European Regulators for Electricity and Gas (ERGEG) for their consideration of future work on this topic.
Should you have any views, please send them to fay.geitona@ceer-eu.org

Below you will find the ERGEG Conclusions Paper to the ERGEG 2005 Public Consultation Paper on the Roadmap for a competitive single gas market in Europe (Gas Road Map).

It forms the basis of the launch (on 25 April 2006) of a major EU-wide Gas Regional Initiative (GRI) designed to identify and remove barriers to competition in 4 EU regions. This regulator-led initiative, which aims to involve all stakeholders including Member States, TSOs and industry, is a practical and achievable way of delivering step-wise progress towards a competitive single European market for gas.

See also Press Release (25 April 2006) and Fact Sheet on Gas Regional Initatives.