Madrid Forum 6 October 2016 Madrid Forum Draft

Madrid Forum 6 October 2016 Madrid Forum Draft Slides 05. A. 03 – Network Code implementation – TSO perspectives Malcolm Arthur Business Area Manager, Markets

Implementation of the Network Codes for Gas 2

Great progress in implementing NCs 2015 CMP Transparency Implementation 2017 Imp. Balancing Imp. 2019 01. 07. 2016 01. 11. 2015 Delayed Imp. Interim measures 01. 10. 2015 01. 10. 2016 Implementation 01. 05. 2016 Tariffs Development Endorsement Incremental Capacity Development Endorsement Gas Quality 2018 Initial application date: 01. 03. 2011 CAM Interoperability 2016 Development Implementation Imp. 4/2019 6/2019 (tentative) 4/2017 (tentative) Endorsement? Imp. ?

Good Cooperation with stakeholders For example, Incremental Reality check • 12 meetings from February to September 2016 • Discussions on a detailed understanding of the INC capacity process • Results – indication of ca 10 inconsistencies / improvements to the CAM NC to EC in the CAM NC amendment comitology process 2016, most of them have been included to the network code INC Reality check is an example of a very good cooperation between stakeholders and ENTSOG 4

Implementation timescales 5

Implementation Timescales 1 year CMP 01/07/2011 Entry into force Balancing Interoperability Incremental Capacity Gas Quality 4 years Trans. platform Implementation 01/11/2015 Implementation April 2019 Imp. 01/05/2016 Anticipated dates Tariffs 3 years Implementation CMP 01/07/2016 Transparency CAM 2 years Implementation Q 2 2019 Implementation (Q 2 2017) and process (2 years) Implementation Unknown 5 years

Change Process Formal Process is Required > Changes require due processes: § to analyze § to develop options for solutions § to determine impact, and § to implement > The processes need to include: § open and transparent consultation of stakeholders § strong involvement of affected stakeholders from an early stage. . And the principles need to be followed during the process 7

Implementation considerations Overview of main considerations > Changes to National legislation > TSO cooperation / coordination > Decision making timescales > Changes to internal processes > IT requirements > Finance > Diffences in the understanding of legal text > TSOs / Member States are not starting from the same point – level of change required may vary signifcantly 8

Stages of implementation Network Code Entry into force Changes to national legislation IT development and implementation National review Develop solutions Agreement Implementation Coordination NRA decision making Finance Understanding of legal text 9

Implementation considerations Examples of Implementation > National legislation changes § Reasonable to assume 12 months depending on complexity of change > TSO cooperation / coordination § Booking platforms > Timescales for making decisions § NRA decision on CMP measures > Timescales to change internal processes § Safety critical processes may require significant time to change > IT requirements § Nomination procedures impacting critical IT systems > Finance § Determination of implementation costs and agreement > Diffences in the understanding of legal text: § Single entity > TSOs / Member States are not starting from the same point § BAL NC development of balancing services 10

Functionality process 11

Gas NC Functionality Platform and collection of issues • The Gas NC Functionality Platform is the central tool for the collection of issues in the Joint Functionality Process • All users (registered and non-registered) have access to the list of submitted issues and their short description • Registered users have additional access to the report form as well as to full details provided for already reported issues including the status of elaboration • ENTSOG and ACER will consider how best to address the issues raised 12

Thank You for Your Attention Malcolm Arthur Business Area Manager, Markets ENTSOG -- European Network of Transmission System Operators for Gas Avenue de Cortenbergh 100, B-1000 Brussels EML: malcolm. arthur@entsog. eu WWW: www. entsog. eu