Post on 20-Aug-2019
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
SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
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
SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
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
SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
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
SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
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
SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
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
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SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
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
SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
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
SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
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
SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
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
SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
13
http://www.snam.it/it/trasporto/codice-rete-tariffe/Codice_di_rete/Aree/aggiornamento.html
• Consultation period : 30 days
• codici@snam.it
14
SRG Network Code update proposal no. 58Resolutions 208/2019/R/gas and 148/2019/R/gas
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
16
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
19
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
22
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
29
Access Contracts Office (CONT)
Email: richieste.capacita@snam.it
Telephone: +39 02.3703.9043
Thank you for your attention!
Contacts:
Settlement Office (SETT)
Email: opcom.bilancio@snam.it
supporto_mgas.snamretegas@snam.it
Telephone: +39 02.3703.9043
Regulatory & Commercial Update