Allocation of Capacity in PortugalUnder the New Regulation

24th IG meeting S-GRI, MadridSeptember 23, 2013

Main changesNew Regulatory Framework

Capacity Managment

Next Steps

Index

Main changes

What has changed with the new regulation on Access to Gas Infrastructures?

• Shippers must buy capacity rights to use the transmission system

The new Regulation sets a complete new standard for capacity booking and trading, promoting convergence with CAM NC and

enabling the implementation of secondary market

• Capacity allocation calendar, standardization of products, allocation through auction, etc.

• Shippers pay according to allocated capacity, instead of used capacity, at all entry/exit points (except LDC)

• Improves interaction between primary and secondary market, while enabling daily auctions

Main changes

New Regulatory

FrameworkCapacity Managment

Next Steps

Index

Programming / Nomination

Programming / Nomination

Daily Operation / System Management

Daily Operation / System Management

New Regulatory Framework

Changes within the scope of Regulatory documents

NOTE: MPAI (Infrastructure’s Access Procedures Manual) – New regulatory document, encompasses former 8 documents governing cap. calculation (MEDC), cap. allocation (MAC), congestion management (MRC) and Strategic Reserves storages

MPGTGMAC, MEDC, MRC(per infrastructure)

Relevant regulatory documents that govern the capacity allocation process:

MPGTG

• Cap. Calculation• Cap. Programming• Congestion Mgmt.

• System Operation• Commercial Margins• Imbalances• Penalties

• Combines former contents with nomination rules• Includes provisions on Secondary Market

MPAI• Product definition• Auction rules• Cap. Allocation• Invoicing• Credit Risk Mgmt.

Assignment of Capacity RightsAssignment of Capacity Rights

Main changes

New Regulatory Framework

Capacity ManagmentNext Steps

Index

Capacity Management

A major change in the capacity management chain

Global System ManagerGlobal System Manager

Global System ManagerGlobal System Manager

Commercial Mgmt. (TSO)Commercial Mgmt. (TSO)

Commercial Mgmt. (TSO)Commercial Mgmt. (TSO)

Before Gas Day Gas Day After Gas Day

Until 30th September, 2013

As from 1st October, 2013

Capacity Management

Standard Products offered

Products \ Maturity Yearly Quarterly Monthly Daily

(week-ahead)Daily

(day-ahead)

Storage of LNG x x x x x

Underground storage x x x

Physical IPs (*) x x x x x

Regasification at LNG terminal x x x x x

Backhaul at LNG terminal x

UGS injection x x

UGS withdrawal x x

(*) only for unbundled capacity at Valença do Minho and Campo Maior (outside the VIP)

Capacity Management

2013/2014

Jun/Jul

(VIP)Y and Q Capacity Auctions

Calendar for 2013 and beyond

GoverningReg.

31.Jul-06.Sep

Yearly Capacity Products

*

06–13.Sep 13 - 20.Sep30.Sep 2013 -30.Sep 2014As from Jul

(VIP)M and D

Cap. Allocation (FCFS)

MPAI MPGTG

2014/…

MarMar

Yearly Capacity Auctions

Yearly Capacity Auctions

YearlyConsumption

Forecast

YearlyConsumption

Forecast

3.Sep3.Sep 16 - 23.Sep16 - 23.Sep

DailyCapacity

(Re)-Nomination

DailyCapacity

(Re)-Nomination

Yearly and Monthly

UtilizationForecast

Yearly and Monthly

UtilizationForecast

30.Sep 2014 -30.Sep …30.Sep 2014 -30.Sep …JunJun

Quarterly Capacity Auctions

Quarterly Capacity Auctions

As from SepAs from Sep

Rolling Monthly Capacity Auctions

Rolling Monthly Capacity Auctions

Rolling Day-Ahead

Capacity Auctions

Rolling Day-Ahead

Capacity Auctions

* This activity includes the publication of available capacity, the auction and the final allocation of capacity to shippers

QuarterlyCapacity Products

*

3.Sep

Yearly Consumpt Forecast

MonthlyCapacity Products

*

23.Sep

Y and M Utilization Forecast

Rolling Day-Ahead

Capacity Auctions

Rolling Day-Ahead

Capacity Auctions

Capacity Management

Changes on Shipper / TSO interaction

Activity

Publication of Available Capacity

Capacity Bidding

Annual Consumption Forecast

Announcement of Congestion

Preliminary Auction Results

Registration of Allocated Capacity

Utilization Forecast/ Nomination

Concerned Entity / Means

TSO / @IGN REN’s Platform

Shipper / Form (e-mail to OMIP)

Shipper / Form (e-mail to GSM)

TSO / @IGN REN’s Platform

REN via OMIP / OMIPlus

REN via OMIP / OMIClear

TSO / @IGN REN’s Platform

Main changes

New Regulatory Framework

Capacity Managment

Next Steps

Index

Next steps

Provisions to complete the regulatory framework

• Revision of general terms of capacity contracts

• Revision of the main operational procedures’ manual – MPGTG

• Definition and implementation of CMP rules

• Further harmonization (Gas Day, nomination schedules, etc.)

Thank you for your attention!

24th IG meeting S-GRI, MadridSeptember 23, 2013