Gas Transmission Developments the role of GTE Milano
- Slides: 26
Gas Transmission Developments - the role of GTE Milano, 21 st November 2001
Overview of presentation • • Background to GTE Work with other organisations Current initiatives Concluding thoughts
Some background on GTE …
Gas Transmission Europe • Formed in July 2000 – At request of Madrid Forum • European wide body representing gas transmission interests • Independent of suppliers (and Eurogas) – Separate budget & statutes from 2002
Membership • Companies operating gas transmission systems with national borders – Transportation arms of integrated companies – Transmission not distribution • Representatives of EU and accession countries • Approximately 30 companies in total
GTE Members
Objectives • Contribute to the development of a fully operational European gas market • Enhance cross-border transmission • Provide information on gas transmission • Voice the opinion of the gas transmission industry in Europe
Organisation • Chairman – Geert Joosten, Gasunie • Plenary – 5 seats per country • Working groups & Vice Presidents – Tariffs Bernard Brelle, Gaz de France – Capacity Fritz Gautier, Ruhrgas – Balancing Brian Withington, Transco – Interoperability Patrick Wailliez, Distrigas
Activities • Promoting communication & dialogue – Madrid Forum & Joint Working Group – Network user organisations • Producing Workgroup Reports • Providing information – Web site www. gte. be • Developing guidelines for good practice
Working with other organisations …
Madrid Forum • • Fourth Meeting 2 nd/3 rd July GTE tabled 4 main workgroup reports Meeting welcomed contribution of GTE, but: More & faster progress needed … – – – Transparency of capacity & gas flow information Infrastructure plan & capacity constraints Cost reflective tariffs Guidelines for good practice European Gas Industry Standards Board • Next meeting in February 2002
Network users • Bilateral meetings with: – EFET – IFIEC – Eurelectric – OGP – Eurogas • First joint workshop 15 th November 2001
Issues arising from 15 th November Network Users Workshop …
Tariff Issues • Tariff levels – Non discriminatory treatment – Basis of asset values • Tariff design – Flexibility of entry/exit versus “point to point” – Benefits of “back-haul” • Clarity, stability & predictability • Pancaking – More concern with multiple contracting than pricing?
Capacity Issues • Facilitation of secondary market – Standard shorter term products – Anti-hoarding measures, “use it or lose it” • Short versus long term allocations – Fixed versus variable quantities • Adequate investment – Avoid constraints and price shocks • Non discriminatory access & information
Balancing issues • • Availability of linepack & storage services Hourly versus daily balancing Facilitation of balancing markets Level of imbalance charges – Cost reflective versus punitive • Financial neutrality of TSOs • Operational Balancing Agreements
Interoperability issues • • Gas quality harmonisation Communication protocols Interconnection Agreements & OBAs Development of EASEE-gas organisation – Membership, scope and constitution – Need for “quick wins”
Network User Reflections • Valuable initiative & constructive meeting • Welcome further dialogue, but … “Proof of the pudding is in the eating” “Storage access is a worry” “Let’s see more gas to gas competition”
What else is GTE doing at present?
Current GTE Initiatives (1) • Tariff Group – Commissioning US study – Gas flows at design conditions • Capacity Group – Publication of available capacities – Allocation principles • Balancing Group – Imbalance charge comparisons & principles – Security of supply review
Current GTE Initiatives (2) • Interoperability Group – Supporting formation of EASEE-gas body – Gas quality • Train ticket study – Barriers to cross system transactions • Guidelines for good practice • Formalising GTE statutes
Meanwhile back at the ranch …
Recent market initiatives • Italy – Entry/exit regime • Holland – Modified entry/exit – “Daily” balancing • UK – Periodic review & investment for flexibility • Bunde-Emden hub proposal – a catalyst for change?
Concluding comments …
Some GTE remarks • Provision of transmission infrastructure is a long term business – Secure funding is vital – Long term contracts have been an integral element of the development of systems • Incentives for TSOs to continue to invest must be maintained as markets liberalise • Electricity industry solutions do not necessarily translate to gas
Some personal thoughts • Successful liberalisation cannot ignore the Security of Supply dimension • “Just leave it to the market” is too risky • Centralised intervention isn’t the answer either • A clear policy framework is needed within which the market can then operate freely – Minimum EU infrastructure standards – Storage inventory obligations? “Just enough is not enough”
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