Workshop New market model for dispatchers Groningen November

Workshop New market model for dispatchers Groningen, November 2010 Version: 1. 1

Agenda 1. Introduction and essentials market model Ard Jan Dunnik 09: 30 - 10: 00 2. Context and programmes Walter Crommelin Altinus Meijer 10: 00 – 11: 30 3. Bid price ladder Walter Crommelin Altinus Meijer 11: 30 – 12: 00 Lunch 12: 00 – 12: 45 3. Bid price ladder Walter Crommelin Altinus Meijer 12: 45 – 13: 30 4. Gasport Peter Scholtens 13: 30 – 14: 00 5. Next steps Ard Jan Dunnik 14: 00 – 14: 15 2

1. Introduction and essentials market model Introduction • You are involved in dispatch operations • Focus on operational process • Address your issues and questions, so interruptions are welcome • Lunch 12: 00 – 12: 45 3

1. Introduction and essentials market model An abstraction of the market design PV processes Book Capacity PV Portfolio management Send programme Nominate Exit, entry & TTF Near Real-time Allocation Hourly Imbalance Settlement at offline allocation POS SBS PV acts When SBS exceeds limit call bid price ladder Market facilitating processes (updated every hour) 4

1. Introduction and essentials market model The hourly imbalance per portfolio is based on near real-time entry and exit allocations, TTF and BPL 1 transfers and damping Calculation hourly imbalance Near real-time Exit (h) Near real-time Entry (h) Transfers TTF & BPL (h) Damping (h) Hourly Imbalance (h) = 40 = -30 = -10 = -5 (sold -13 and bought 3) • Imbalance calculation is (more or less) unchanged 2 compared to the current system, except when damping is applied (cf. using t+2 in the current system) • Damping can be applied based on the exit volumes (exit programme) 1 BPL = Bid Price Ladder 2 Near real-time calculated instead of off-line 5

1. Introduction and essentials market model The Portfolio Imbalance Signal (POS) is the cumulative hourly imbalance per portfolio. Portfolio Imbalance Signal (POS) Hourly imbalance POS (11: 00) (. . : 00 (08: 00 (09: 00 (10: 00 - . . : 00) 09: 00) 10: 00) 11: 00) = = = . . -1 1 2 2 + The System Balance Signal (SBS) is the sum of all POSses and therefore reflects the physical imbalance of the grid. System Balance Signal (SBS) for hour h POS PV A POS PV B POS PV C SBS = = -1 -1 3+ 1 6

1. Introduction and essentials market model When the imbalance is exceeding a pre-set system limit the imbalance will be solved by calling the bid price ladder • No bandwidth or tolerance per portfolio but for the system as a whole • The bid price ladder contains bids of PV’s for solving the imbalance of the system • Calling the bid price ladder implies that GTS buys or sells gas (on the bid price ladder) in order to restore the system balance Call bid price ladder SBS 0 7

1. Introduction and essentials market model PVs send a programme (day-ahead) to GTS with a forecast of the entry, exit and TTF allocations per portfolio • Programmes enable GTS to determine the expected system load by which GTS can set the limits of the system • Programmes enable GTS and PVs to apply the damping • Programmes do not have impact on the hourly imbalance (and therefore on POS and SBS) except when damping is applied 06: 00 - 07: 00 +2 07: 00 - 08: 00 +3 08: 00 - 09: 00 0 . . Damping added to portfolio and therefore impact on the difference between entry and exit flow . . 04: 00 - 05: 00 -2 05: 00 - 06: 00 -3 0 8

1. Introduction and essentials market model The difference between near real-time allocations and offline allocations will be settled. • The offline allocations are near real-time allocations with corrections applies if necessary • The corrections will be settled by GTS and have no impact on the POS of PVs Nominations and capacity • Nominations are still required at entry and exit points wherever GTS needs nominations for technical transport reasons or for the purpose of calculation of the assignment of interruptible capacity or points where they are needed to determine allocations • Entry and exit capacity will still be booked both firm and interruptible 9

Agenda 1. Introduction and essentials market model Ard Jan Dunnik 09: 30 - 10: 00 2. Context and programmes Walter Crommelin Altinus Meijer 10: 00 – 11: 30 3. Bid price ladder Walter Crommelin Altinus Meijer 11: 30 – 12: 00 Lunch 12: 00 – 12: 45 3. Bid price ladder Walter Crommelin Altinus Meijer 12: 45 – 13: 30 4. Gasport Peter Scholtens 13: 30 – 14: 00 5. Next steps Ard Jan Dunnik 14: 00 – 14: 15 10

Context 11

Balancing portfolio and grid MP 1 SBS a nd based POS on onlin e alloca tions MP 3 entry LDC MP 2 MP 4 entry Industry GTS grid 12 LDC grid

POS is accumulation of hourly imbalances entry(t) + exit (t) + damping (t) 13 - = lo + = s ng hort

SBS is sum of POSs - = lo + = s ng hort Every 5 minutes a prognosis is given for the end of the current hour. 14

Help rewarded, causer pays SBS PV Short PV Long Balanced Short Long ☼ € € Causer Helper € € Helper Causer ☼ 15

General Information 16

General Information: Time § Imbalances are determined per whole clock hour § The whole clock hour is also used in both old (nominations and confirmations) and new messages (programmes, bid price ladder), e. g. the gas flow from 06: 00 to 07: 00 will be 1. 000 k. Wh § Leadtimes are relative to the start of the whole clock hour, e. g. a leadtime of thirty minutes for the hour from 06: 00 to 07: 00 means the information must be received by 05: 30: 00 at the latest § There is no longer a daily reset and cash-out of imbalance positions. POS cumulation runs continuously. 17

General Information: Lead time reduction § Applies to most networkpoints, see website for list. § Network point capacity < 50. 000 m 3/h = no restrictions in flow change up to booked firm capacity. § Network point capacity >= 50. 000 m 3/h = difference between H -2 nomination and H-½ nomination: – Max (25% of the firm capacity booked, 50. 000 m 3/h) § Bidirectional network points >= 50. 000 m 3/h = difference between H-2 nomination and H-½ nomination: – Max (25% of the largest firm capacity booked, 50. 000 m 3/h) § For the purpose of determining the firm capacity booked by a party, all relevant portfolios of the party and (any) affiliated companies will be taken into account. 18

General Information: Messages Measurements & Temperature Measurements End Users (wholesale) Balancing Agreement Day-ahead Zones/Damping/CCF/IC POS & SBS Transport Nom & Conf Allocations (XML) GTS Programs PV (Program Responsible Party) Allocations (LALL) Within-day Allocations (LALL) Bid Price Ladder Allocations (BALL) Supplier Allocations (BALL) Allocations Measurements EDSN (CSS) 19 Measurements Base Data LDC (Local Distribution Company)

Programmes 20

Programmes § Programmes are the PV’s prediction of the planned entry, exit and TTF flows per portfolio for the next gas day § GTS aggregates programmes to a prediction for the system load § Programmes enable GTS and PVs to apply the damping § Programmes do not have impact on the hourly imbalance (and therefore on POS and SBS) except when damping is applied 21

Timeline programmes Hourly cycle of programme matching and confirmation 09: 00 Alpha en beta publication 14: 00 PV’s send programmes to GTS 18: 00 19: 00 20: 00 21: 00 22: 00 Final programme confirmations sent GTS sends programme confirmations 22 06: 00

Process schematic programmes At 14: 00 and hourly from 18: 00 to 22: 00 Daily ACKNOW Whenever a new programme is sent 23

Programme types § PV’s send either 1 or 2 programmes per portfolio: – An exit programme is required for a portfolio with physical exit – An entry programme is required for a portfolio with physical entry – A trade programme is required for a portfolio without physical entry or physical exit § EDIG@S Message Type PRODOC § Always for one complete gas day § If a PV sends an entry programme it is recommendable to put the TTF deals in the entry programme (instead of in the exit programme). 24

Programme types Exit Entry MP 1 MP 3 VPPV entry Entry programme LDC Trade programme MP 4 Industry Exit programme MP 2 MP 5 entry Export GTS grid 25 LDC grid

Programme content: Trade Programme § Contains hourly volumes for transfers on the VPPV – Contains trading volumes – Net volume of VPPV transfers must always be zero § Internally consistent when Σ Entry + Σ Exit = 0 using GTS sign convention 26

Trade programme Exit Entry MP 1 MP 3 VPPV entry Trade from other PV’s LDC Trade to other PV’s Trade programme MP 2 MP 4 Industry MP 5 entry Export GTS grid 27 LDC grid

Programme content: Exit programme § Contains hourly exit volumes for four exit categories: – GSTPPU: volumes for Protected Users* – GSTPOTHER: volumes for other exits – GSTPPUB: volumes for Protected Users* as part of a Balancing Relation – GSTPOTHERB: volumes for other exits as part of a Balancing Relation § Contains hourly volumes for transfers on the VPPV – May contain trading volumes** – May contain transfer from PV’s own entry programme – Net volume of transfers must always be entry or zero * consumers ≤ 40 m 3/h (art. 43 Gas act) ** choice PV: entry or exit programme 28

Programme content: Exit programme Exit Entry MP 1 entry Transfer from own entry programme MP 3 VPPV LDC Forecast for offtake by LDC grid connections ≤ 40 m 3/h MP 4 Industry Trade from other PV’s Exit programme NOMFLEX MP 2 entry MP 5 Export GTS grid 29 Forecast offtake of all other connections

Programme content: Exit programme § Damping is obligatory if the Exit Programme is for a portfolio that includes Protected Users. Optional for other Exit Programmes § If damping is optional the choice has to be made before 01 -Jan and is valid for one year. § The damping is calculated with damping formula and alpha and beta parameters, see next slide. § Internally consistent when Σ Entry + Σ Exit + Damping = 0 using GTS sign convention § Damping is implicit in PRODOC message as the difference between sum of exits and net entry on VPPV; the values are not included in the message. 30

Damping formula 23 or 25 during changes from summertime to wintertime and vice versa 31

Programme content: Exit programme Damping 32

Enter data Enter alpha and beta parameter values for gasday here Enter hourly exit values here NB: GTS website examples of 23/25 hour gas day 33

Results Click to expand show calculation steps Graph showing results Resulting hourly entry values shown here Resulting hourly damping values shown here 34

Calculation steps Step 3 Smoothing: Results determined by beta parameter Step 1 Damping: Results determined by alpha parameter 35 Step 2 Volume neutral: Makes daily entry flow equal to daily exit flow

Programme content: Entry Programme § Contains total hourly entry volumes § Contains hourly volumes for transfers on the VPPV – May contain trading volumes – May contain transfer to PV’s own exit programme – Net volume of VPPV transfers must always be exit or zero § Internally consistent when Σ Entry + Σ Exit = 0 using GTS sign convention 36

Programme content: Entry Programme Exit Entry MP 1 VPPV Forecast entry Transfer to own exit programme NOMFLEX Entry programme Trade to other PV’s MP 2 entry MP 3 LDC MP 4 Industry MP 5 Export GTS grid 37 LDC grid

Programme example: no damping and trading in exit programme PV A → PV B +25 PV A MP 1 entry PV A +175 MP 2 entry LDC grid TTF -100 PV A VPPV -175 PV A -75 +150 MP 4 Industry GTS grid Entry programme PV A Exit programme PV A Total entry To PV A on VPPV Total exit To PV B on TTF and VPPV From PV A on VPPV -175 +175 38 +150 +25 -175

Programme example: no damping and trading in entry programme PV A → PV B PV A MP 1 entry +25 LDC grid TTF -100 PV A +150 MP 2 entry PV A VPPV -150 PV A -75 +150 GTS grid Entry programme PV A Total entry To PV A on VPPV To PV B on VPPV and TTF Exit programme PV A -175 +150 +25 Total exit +150 From PV A on VPPV -150 39 MP 4 Industry

Programme example: with damping and trading in entry programme PV A → PV B PV A MP 1 entry +25 PV A TTF -160 +65 PV A +210 MP 2 entry PV A -75 +150 GTS grid Entry programme PV A Exit programme PV A -235 +210 +25 example shows one hour ∑ Damping per gas day = 0 -210 PV A Total entry To PV A on VPPV To PV B on VPPV and TTF LDC PV A VPPV LDC grid MP 3 Total exit +215 From PV A on VPPV -210 Damping -5 40 MP 4 Industry

Programme use: calculation of hourly imbalance PV A → PV B +25 PV A MP 1 entry PV A TTF -160 -150 +65 +70 PV A +210 MP 2 entry MP 3 LDC grid LDC PV A VPPV -210 PV A -75 -80 +155 MP 4 Industry GTS grid Hourly balance exit + entry + damping = 0 Damping = -5 Exit = 70 + 155 = 225 -205 – 5 = 15 ≠ 0 → 15 short Entry = -150 – 80 + 25 = -205 41

Programme validation: internal consistency (1) § GTS checks syntactic correctness of programme message upon receipt § GTS checks internal consistency of programme: – For Entry and Trade programmes upon receipt – For Exit programmes: – at 09: 00 D-1 (after publication alpha and beta) for programmes for D received before 09: 00 – Upon receipt of programmes for D received after 09: 00 § If check fails GTS applies default rules to programmes at time of confirmation: any damping in an exit programme is lost 42

Programme validation: internal consistency (2) § GTS sends ACKNOW message to PV’s for each programme: – ACKNOW for Entry and Trade programme contains information on both syntactic and internal consistency check – Before 09: 00 ACKNOW for Exit programme only contains information on syntactic check – If a PV sends in an Exit programme before 09: 00 then at 09: 00 PV receives second ACKNOW with information on internal consistency check – After 09: 00 ACKNOW for Exit programme contains information on both syntactic and internal consistency check 43

Most common ACKNOW codes concerning programmes § § § § § 01 G 04 G 14 G 23 G 41 G 44 G 45 G 46 G 47 G 48 G 50 G 61 G 62 G 66 G 67 G 68 G 69 G 70 G § § § 77 G 78 G 81 G Processed and accepted (message fully acceoted) Received after deadline Unknown account identification Message refused by operator Semantic error Unregistered party Unknown party identification Unknown location identification Incomplete period Other error Message already accepted Invalid message sender Invalid unit of measurement Invalid contract. Unknown shipping account Other (with textual explanation) Damping incorrect Message accepted with remarks (if message ok, except damping because message is received before 09: 00) No valid quantity The counterparty is missing The type of Transport Program is not allowed 44

Programme validation: External consistency (1) § GTS checks external consistency (VPPV transfers) of programmes and applies default rules in case of mismatches. § Default rules do not lead to a chain of external consistency check failures (limited to directly involved programmes). § Matched and confirmed VPPV transfers can only be changed if both parties submit new, matching values for the VPPV transfer. § If after a matching and confirmation cycle all programmes are correct, the programme process ends and no new programmes can be submitted. 45

Programme validation: External consistency (2) For each transfer between programmes on the VPPV GTS matches the following: § The submitted counterportfolio § The submitted volume § The specified time period § The direction of the transfer Transfers which mismatch are set to zero. Transfers submitted by a clearing house (e. g. APX) are assumed to be correct and override transfers submitted by PV’s 46

Example Mismatch Exit Programme PRODOC Sent from PV X to GTS Gasday Start Hour End Hour Exit Trade Programme Sent from PV C to GTS Exit GSTPPU 01 -04 -2011 6: 00 7: 00 8: 00 9: 00 10: 00 11: 00 12: 00 13: 00 14: 00 15: 00 16: 00 17: 00 18: 00 19: 00 20: 00 21: 00 22: 00 23: 00 0: 00 1: 00 2: 00 3: 00 4: 00 5: 00 6: 00 100000 150000 180000 215000 200000 170000 140000 120000 110000 130000 150000 170000 180000 165000 110000 70000 55000 40000 30000 40000 70000 Exit GSTPOTHER 500000 500000 500000 500000 500000 500000 Exit GSTPPUB 75000 112500 135000 157500 161250 150000 127500 105000 90000 82500 97500 112500 127500 135000 123750 82500 52500 41250 30000 22500 30000 52500 VPPV GSTPOTHERB GSPVA 250000 250000 250000 250000 250000 250000 -304152 -318590 -334471 -351074 -360819 -361361 -352969 -340110 -327906 -318917 -320197 -326612 -335595 -342973 -346663 -344176 -327052 -306939 -292552 -281027 -272377 -268052 -268777 -277802 VPPV GSPVB GSPVC -350000 -350000 -350000 -350000 -350000 -350000 -267521 -296833 -329077 0 -362787 -382572 -383672 -366634 -340527 -315749 0 -297498 -300097 -313121 -331359 -346340 -353830 -348782 -314014 -273180 -243969 -220570 -203008 -194227 -195699 -214022 VPPV GSPVX 267521 296833 329077 0 152787 382572 383672 366634 340527 315749 0 157498 300097 313121 331359 346340 353830 348782 314014 273180 243969 220570 203008 194227 195699 214022 Mismatch values set to zero 47 GSPVK -267521 -296833 -329077 -362787 -382572 -383672 -366634 -340527 -315749 -297498 -300097 -313121 -331359 -346340 -353830 -348782 -314014 -273180 -243969 -220570 -203008 -194227 -195699 -214022

Programme confirmation (1) § After each check GTS communicates the result to the PV’s: – EDIG@S Message Type PROCON – Message Statuses allow PV’s to identify and correct errors – New confirmations are sent if statuses change § The PROCON message includes additional dummy counterportfolios that confirm total flows and damping 48

Programme confirmation (2) § Dummy counterportfolios for the exit programme: – GSTPEXIT: total hourly physical exit – GSTPVPPVEN: net hourly virtual entry – GSTPD: damping § Dummy counterportfolios for the entry programme: – GSTPVPPVEX: net hourly virtual exit – GSTPD: damping § Dummy counterportfolios for the trade programme: – GSTPVPPVEN: total hourly virtual entry – GSTPVPPVEX: total hourly virtual exit – GSTPD: damping 49

Programme Confirmation (3): Trade § If a trade programme is internally and externally consistent: – Virtual Entry (GSTPVPPVEN) = Σ VPPV transfers that are entry – Virtual Exit (GSTPVPPVEX) = Σ VPPV transfers that are exit – Damping (GSTPD) = 0 § If a trade programme is internally or externally inconsistent : – Virtual Entry (GSTPVPPVEN) = Σ VPPV transfers that are entry – Virtual Exit (GSTPVPPVEX) = Σ VPPV transfers that are exit – Virtual Exit (GSTPVPPVEX) = MIN(ABS(GSTPVPPVEN), ABS(GSTPVPPVEX)) – Virtual Entry (GSTPVPPVEN) = - GSTPVPPVEX – Damping (GSTPD) = 0 50

Example consistent trade programme Additional information in confirmation Trade Programme PROCON Sent by GTS to PV Gasday Start Hour End Hour VPPV GSPVA 01 -04 -2011 6: 00 7: 00 8: 00 9: 00 10: 00 11: 00 12: 00 13: 00 14: 00 15: 00 16: 00 17: 00 18: 00 19: 00 20: 00 21: 00 22: 00 23: 00 0: 00 1: 00 2: 00 3: 00 4: 00 5: 00 6: 00 550000 550000 550000 550000 550000 550000 Added to confirmation VPPV GSPVB GSPVC GSPVD 400000 400000 400000 400000 400000 400000 -900000 -900000 -900000 -900000 -900000 -900000 Sum = GSTPVPPVEX Total Exit on VPPV Total Entry on VPPVDelta Profile -50000 -50000 -50000 -50000 -50000 -50000 GSTPVPPVEX 950000 950000 950000 950000 950000 950000 Sum = GSTPVPPVEN GSTPD always zero for trade programmes 51 GSTPVPPVEN -950000 -950000 -950000 -950000 -950000 -950000 GSTPD 0 0 0 0 0 0

Example inconsistent trade programme Additional information in confirmation Trade Programme PROCON Sent by GTS to PV Gasday Start Hour End Hour VPPV GSPVA 01 -04 -2011 6: 00 7: 00 8: 00 9: 00 10: 00 11: 00 12: 00 13: 00 14: 00 15: 00 16: 00 17: 00 18: 00 19: 00 20: 00 21: 00 22: 00 23: 00 0: 00 1: 00 2: 00 3: 00 4: 00 5: 00 6: 00 550000 550000 550000 550000 550000 550000 Added to confirmation VPPV GSPVB GSPVC GSPVD 400000 400000 400000 0 400000 400000 400000 -900000 -900000 -900000 -900000 -900000 -900000 Total Exit on VPPV Total Entry on VPPVDelta Profile -50000 -50000 -50000 -50000 -50000 -50000 GSTPVPPVEX 950000 950000 950000 550000 950000 950000 950000 GSTPD always zero Sum =absolute Sumfor = trade GSTPVPPVEX= programmes lowest. Mismatch of both sums 550000 -950000 GSTPVPPVEN =GSTPVPPVEX 52 GSTPVPPVEN -950000 -950000 -950000 -550000 -950000 -950000 -950000 GSTPD 0 0 0 0 0 0

Programme Confirmation (4): Exit § If an exit programme is internally and externally consistent : – Net hourly virtual entry (GSTPVPPVEN) = Σ VPPV transfers – Total physical exit (GSTPEXIT) = Σ physical exits – Damping (GSTPD) = damping § If an exit programme is internally or externally inconsistent : – Net hourly virtual entry (GSTPVPPVEN) = MIN(Σ VPPV transfers, 0) – Total physical exit (GSTPEXIT) = - GSTPVPPVEN – Damping (GSTPD) = 0 53

Example consistent exit program Exit Programme Additional information in confirmation PROCON Sent from GTS to PV X Gasday Start Hour. End Hour Exit GSTPPU 01 -04 -2011 6: 00 7: 00 8: 00 9: 00 10: 00 11: 00 12: 00 13: 00 14: 00 15: 00 16: 00 17: 00 18: 00 19: 00 20: 00 21: 00 22: 00 23: 00 0: 00 1: 00 2: 00 3: 00 4: 00 5: 00 6: 00 100000 150000 180000 215000 200000 170000 140000 120000 110000 130000 150000 170000 180000 165000 110000 70000 55000 40000 30000 40000 70000 Exit GSTPOTHER 500000 500000 500000 500000 500000 500000 Exit GSTPPUB Sum = 75000 112500 135000 157500 161250 150000 127500 105000 90000 82500 97500 112500 127500 135000 123750 82500 52500 41250 30000 22500 30000 52500 GSTPEXIT VPPV GSTPOTHERB GSPVA 250000 250000 250000 250000 250000 250000 -304152 -318590 -334471 -351074 -360819 -361361 -352969 -340110 -327906 -318917 -320197 -326612 -335595 -342973 -346663 -344176 -327052 -306939 -292552 -281027 -272377 -268052 -268777 -277802 VPPV GSPVB GSPVC -350000 -350000 -350000 -350000 -350000 -350000 Sum = -267521 -296833 -329077 -362787 -382572 -383672 -366634 -340527 -315749 -297498 -300097 -313121 -331359 -346340 -353830 -348782 -314014 -273180 -243969 -220570 -203008 -194227 -195699 -214022 GSTPVPPVEN Net Entry on VPPV Delta Profile Total Physical Exit GSTPVPPVEN GSTPD GSTPEXIT -921673 -965423 -1013548 -1063861 -1093391 -1095033 -1069603 -1030637 -993655 -966415 -970294 -989733 -1016954 -1039313 -1050493 -1042958 -991066 -930119 -886521 -851597 -825385 -812279 -814476 -841824 -3327 -47077 -51452 -53640 -32858 -4968 22103 35638 33655 23914 -7206 -22767 -30547 -25687 -14507 4208 48565 57619 40271 31597 22885 9779 -5524 -30676 925000 1012500 1065000 1117500 1126250 1100000 1047500 995000 960000 942500 977500 1012500 1047500 1065000 1038750 942500 872500 846250 820000 802500 820000 872500 GSTPD = - GSTPVPPVEN - GSTPEXIT 54

Example inconsistent exit program Exit Programme Additional information in confirmation PROCON Sent from GTS to PV X Gasday Start Hour. End Hour Exit GSTPPU 01 -04 -2011 6: 00 7: 00 8: 00 9: 00 10: 00 11: 00 12: 00 13: 00 14: 00 15: 00 16: 00 17: 00 18: 00 19: 00 20: 00 21: 00 22: 00 23: 00 0: 00 1: 00 2: 00 3: 00 4: 00 5: 00 6: 00 100000 99640 150000 143026 180000 171304 199920 210000 208727 215000 199097 200000 173587 170000 145014 140000 124207 120000 112791 130000 129042 150000 146627 170000 165043 117122 180000 177548 180000 165668 165000 115668 110000 74623 70000 57617 55000 41541 40000 30856 30000 30366 30000 40000 39731 70000 67539 Exit GSTPOTHER 500000 498202 500000 476752 500000 475844 476000 500000 485412 500000 497742 500000 510550 500000 517908 500000 517529 500000 512687 500000 496314 500000 488757 500000 485420 325339 500000 493189 500000 502026 500000 525764 500000 533019 500000 523794 500000 519266 500000 514259 500000 506093 500000 496632 500000 482421 Exit GSTPPUB VPPV GSTPOTHERB GSPVA 75000 74730 112500 107269 135000 128478 149940 157500 156545 161250 149323 150000 130190 127500 108761 105000 93155 90000 82500 84593 97500 96781 112500 109970 127500 123782 87842 135000 133161 135000 124251 123750 86751 82500 55967 52500 43213 41250 31156 30000 23142 22500 22774 22500 30000 29798 52500 50654 250000 249101 250000 238376 250000 237922 238000 250000 242706 250000 248871 250000 255275 250000 258954 250000 258764 250000 256344 250000 248157 250000 244379 250000 242710 162670 250000 246595 250000 251013 250000 262882 250000 266510 250000 261897 250000 259633 250000 257129 250000 253046 250000 248316 250000 241210 -304152 -318590 -334471 -351074 -360819 -361361 -352969 -340110 -327906 -318917 -320197 -326612 -335595 -342973 -346663 -344176 -327052 -306939 -292552 -281027 -272377 -268052 -268777 -277802 GSTPD = 0 Sum = GSTPEXIT Pro rata over categories VPPV GSPVB GSPVC -350000 -350000 -350000 -350000 -350000 -350000 -267521 -296833 -329077 -362787 -382572 -383672 -366634 -340527 -315749 -297498 -300097 -313121 -331359 0 -353830 -348782 -314014 -273180 -243969 -220570 -203008 -194227 -195699 -214022 Net Entry on VPPV Delta Profile Total Physical Exit GSTPVPPVEN GSTPD GSTPEXIT Sum = Mismatch GSTPVPPVEN -921673 -965423 -1013548 -1063861 -1093391 -1095033 -1069603 -1030637 -993655 -966415 -970294 -989733 -1016954 -692937 -1050493 -1042958 -991066 -930119 -886521 -851597 -825385 -812279 -814476 -841824 0 0 0 0 0 0 921673 965423 1013548 1063860 1093392 1095032 1069603 1030638 993655 966414 970294 989733 1016953 692973 1050493 1042958 991065 930119 886521 851597 825385 812279 814476 841824 GSTPEXIT = - GSTPVPPVEN 55

Programme Confirmation (5): Entry § If an entry programme is internally and externally consistent: – Net hourly virtual exit (GSTPVPPVEX) = Σ VPPV transfers – Total physical entry (GSTPENTRY) = unchanged from submitted value – Damping (GSTPD) = 0 § If an entry programme is internally or externally inconsistent: – Net hourly virtual exit (GSTPVPPVEX) = MAX(Σ VPPV transfers, 0) – Total physical entry (GSTPENTRY) = - GSTPVPPVEX – Damping (GSTPD) = 0 56

Example consistent entry programme Additional information in confirmation Entry Programme PROCON Sent by GTS to PV Gasday Start Hour End Hour Physical Entry GSTPENTRY 01 -04 -2011 6: 00 7: 00 8: 00 9: 00 10: 00 11: 00 12: 00 13: 00 14: 00 15: 00 16: 00 17: 00 18: 00 19: 00 20: 00 21: 00 22: 00 23: 00 0: 00 1: 00 2: 00 3: 00 4: 00 5: 00 6: 00 -921673 -965423 -1013548 -1063860 -1093392 -1095032 -1069603 -1030638 -993655 -966414 -970294 -989733 -1016953 -1039313 -1050493 -1042958 -991065 -930119 -886521 -851597 -825385 -812279 -814476 -841824 Added to confirmation VPPV Net exit on VPPV Delta Profile GSPVA GSPVB GSPVC GSTPVPPVEX 550000 550000 550000 550000 550000 550000 350000 350000 350000 350000 350000 350000 Sum = 21673 65423 113548 163860 193392 195032 169603 130638 93655 66414 70294 89733 116953 139313 150493 142958 91065 30119 -13479 -48403 -74615 -87721 -85524 -58176 GSTPVPPVEX GSTPD always zero for entry programmes 57 921673 965423 1013548 1063860 1093392 1095032 1069603 1030638 993655 966414 970294 989733 1016953 1039313 1050493 1042958 991065 930119 886521 851597 825385 812279 814476 841824 GSTPD 0 0 0 0 0 0

Example inconsistent entry programme Additional information in confirmation Entry Programme PROCON Sent by GTS to PV Gasday Start Hour End Hour Physical Entry GSTPENTRY Added to confirmation VPPV Net exit on VPPV Delta Profile GSPVA GSPVB GSPVC GSTPVPPVEX 01 -04 -2011 6: 00 7: 00 -921673 550000 7: 00 8: 00 -965423 550000 8: 00 9: 00 -1013548 550000 9: 00 10: 00 -1063860 550000 10: 00 11: 00 -1093392 550000 11: 00 12: 00 -1095032 550000 12: 00 13: 00 -1069603 550000 13: 00 14: 00 -1030638 550000 14: 00 15: 00 -993655 550000 15: 00 16: 00 -966414 550000 16: 00 17: 00 -970294 550000 17: 00 18: 00 -989733 550000 18: 00 19: 00 -1016953 550000 19: 00 20: 00 -1039313 550000 -900000 20: 00 21: 00 -1050493 550000 21: 00 22: 00 -1042958 550000 22: 00 23: 00 -991065 550000 23: 00 0: 00 -930119 550000 0: 00 1: 00 -886521 550000 1: 00 2: 00 -851597 550000 2: 00 3: 00 -825385 550000 3: 00 4: 00 -812279 550000 In order to make programme 4: 00 5: 00 -814476 550000 5: 00 again 6: 00 GSTPENTRY -841824 consistent =550000 - GSTPD always zero for entry programmes 350000 350000 350000 350000 350000 350000 Sum = 21673 65423 113548 163860 193392 195032 169603 130638 93655 66414 70294 89733 116953 139313 0 142958 91065 30119 -13479 -48403 -74615 -87721 -85524 -58176 Mismatch GSTPVPPVEX GSTPVPPV 58 921673 965423 1013548 1063860 1093392 1095032 1069603 1030638 993655 966414 970294 989733 1016953 1039313 900000 1042958 991065 930119 886521 851597 825385 812279 814476 841824 GSTPD 0 0 0 0 0 0

Status codes for PROCON’s § § § § 01 G D 64 G MM 69 G DN 71 G VR 1 72 G VR 2 73 G MMV 74 G DMV rearranged § 83 G US § 84 G CM Processed and accepted (programme process closed) Mismatch Damping not ok Volume pre-arranged (wrong damping) Volume post-arranged (mismatched) Mismatch and volume post-arranged Damping not ok, mismatch and volume post Contractually binding quantities maintained Mismatch in a linked nomination (sender is ok, somebody else has a problem) 59

Example of use of statuses (1): submitted programmes 60

Example of use of statuses (1): confirmed programmes In the exit programme of PV 11 all statuses are CM 61

Example of use of statuses (2): submitted programmes 62

Example of use of statuses (2): confirmed programmes In the entry programme of PV 08 all statuses are CM 63

Agenda 1. Introduction and essentials market model Ard Jan Dunnik 09: 30 - 10: 00 2. Context and programmes Walter Crommelin Altinus Meijer 10: 00 – 11: 30 3. Bid price ladder Walter Crommelin Altinus Meijer 11: 30 – 12: 00 Lunch 12: 00 – 12: 45 3. Bid price ladder Walter Crommelin Altinus Meijer 12: 45 – 13: 30 4. Gasport Peter Scholtens 13: 30 – 14: 00 5. Next steps Ard Jan Dunnik 14: 00 – 14: 15 64

Bid Price Ladder (BPL) Bid Price Ladder bidding process Publication of BPL Conclude framework agreement Submission and validation of bids Data to BPL call process Bids placed on BPL Compare bids to expected need 65 Possible request for more bids

Bid Price Ladder bidding process § Bids are submitted by sending a BIDDOC message to GTS, see EDIG@S MIG for details § All bid volumes must be multiples of 150. 000 k. Wh § Message contains all bids for a gas day § Deadline for submitting/changing bid volumes is 8 hours before the hour of gas flow (H-8) § Deadline for submitting/changing bid prices is 4 hours before the hour of gas flow (H-4) § Publication of BPL via Gasport and website 66

Example of bid structure If you want to change any of these: insert an extra bid with a different Bid identifier If you want to include an extra amount or a different price for an hour insert another set of 24 hours 67

Bid Price Ladder (BPL) BPL call process SBS prognosis for end of current hour Zones Assistance gas confirmations to all portfolio’s with POS ≠ 0 Determine BPL volume needed Determine order of BPL bids Information concerning call to market BPL activations to all called PV’s BPL call Information concerning call to billing process Data from bidding process BPL confirmations to all causers All POS’s 68

Timeline for hour T GTS compares bids offered to expected need and can ask for more bids PVs can offer or retract bids for non-reserved fast means to be delivered in hour T+1 T-10 T-9 T-8 PVs can offer or retract bids for nonreserved fast and medium and slow means to be delivered in hour T+3 T-7 T-6 T-5 T-4 T-3 T-2 T-1 T T+1 T+2 T+3 Call PVs can offer or retract bids for nonreserved fast and medium means to be delivered in hour T+2 Bid activations sent to bidders Call Clearing and assistence gas confirmations sent to causers PVs can change the prices for fast means to be delivered in hour T+1 PVs can change the prices for fast and medium means to be delivered in hour T+2 Assistence gas confirmations sent to helpers PVs can change the prices for fast and medium and slow means to be delivered in hour T+3 69 Gas called flows to/from bidder portfolio’s Assistence gas transferred between helpers and causers

Timeline for hour T BPL call: detail 0 5 10 15 20 25 30 30 - 59 60 XX: 14: 30 Publication accountable POS XX: 19: 30 Publication prognosis SBS of XX: 15 PV’s process messages and determine renominations XX: 20: 00 Call of BPL: messages (BIDACT, CLRCONs) sent to PV’s XX: 30: 00 renomination deadline for next hour (incl fast means) XX: 21: 00 Messages arrive at PV’s 70 Matching and confirmation process for next hour

Timeline for hour T: detail Time Event Action XX: 13: 00 EDSN sends allocation for LDC exits Input for accountable POS and therefore needed for determination helper/causer XX: 14: 30 GTS publishes accountable POS for all PV’s POS’s sent to BPL system XX: 19: 30 GTS publishes prognosis SBS of XX: 15: 00 Prognosis SBS sent to BPL system XX: 20: 00 GTS determines need for BPL call If needed: BPL system determines bids called and generates + sends BIDACT and CLRCONs XX: 21: 00 Messages arrive at PV’s process messages and if needed send ACKNOW XX: 28: 30 PV’s determine actions needed for their portfolio(s) PV’s send renominations for next hour to GTS XX: 30: 00 Deadline for renominations for next hour GTS validates renominations and sends ACKNOW XX: 30: 00 – XX: 59: 00 Matching and confirmation process GTS matches renominations and sends new confirmations to PV’s XX: 59 End of current hour 71

Process § When will the bid price ladder be called? § How will the volume to be called be determined? § How will the bidders be informed what is called from them? § How will the called volume be divided over the causers? § How will the assistance gas be divided? 72

Process: When will the bid price ladder be called? § If the predicted SBS is in the Light Green Zone then the bid price ladder is only called upon if the absolute value of the predicted SBS is larger than the absolute value of the predicted SBS for the previous hour. § If the predicted SBS is in the Orange Zone then the bid price ladder is always called. 73

yes yes no no Long = GTS sells Short = GTS buys Bid ladder call? Yes or no? no no yes 74

Short and Long: SBS Short and not in Dark Green Zone § Short means the gas transport system as a whole contains less gas than planned § GTS will buy gas and therefore select bids from the BPL with the direction “Entry”: an offer to sell gas to GTS and therefore bring it into the system § Bidder Clearing Confirmation has direction “Exit” (exit on BAP; PV sells gas to GTS) § Causer Clearing Confirmation has direction “Entry” (entry on BVP; PV buys gas from GTS) § Assistance gas: Helper Clearing Confirmation has direction “Exit” (exit on AHP; PV sells gas to GTS) § Assistance gas: Causer Clearing Confirmation has direction “Entry” (entry on AVP; PV buys gas from GTS) 75

Short and Long: SBS Long and not in Dark Green Zone § Long means the gas transport system as a whole contains more gas than planned § GTS will sell gas and therefore select bids from the BPL with the direction “Exit”: an offer to buy gas from GTS and therefore take it out of the system § Bidder Clearing Confirmation has direction “Entry” (entry on BAP; PV buys gas from GTS) § Causer Clearing Confirmation has direction “Exit” (exit on BVP; PV sells gas to GTS) § Assistance gas: Helper Clearing Confirmation has direction “Entry” (entry on AHP; PV buys gas from GTS) § Assistance gas: Causer Clearing Confirmation has direction “Exit” (exit on AVP; PV sells gas to GTS) 76

How will the volume to be called be determined? (1) T = Hour of call T +1 : Lead time BL = 30 min Short T = T-1 5 1 T +2 : Lead time BL = 90 min 4 7 Volume = -45 6 2 Volume = -30 Imbalance Volume + Updated Imbalance Volume Long _ * Call Correction factor Means available to be called in the next three hours 12 11 10 12 11 9 Fast means 7 10 8 Medium means 5 6 3 1 Slow means 4 Order means based on price 9 8 7 6 5 2 4 3 First hour Second hour Third hour Number = price Volume = 15 per bid Corrected Imbalance Volume 2 1 77 Bid Ladder Call Volume Marginal price = 9 T +3 : Lead time BL = 150 min Call 3 8 9 Volume = -60

How will the volume to be called be determined? (2) § Call Correction Factor (CCF): A percentage GTS can adjust in order to prevent bid ladder calls leading to system instability. – There are two CCF’s: one for the Light Green Zone and one for the Orange Zone – Value can be changed daily – Published at 09: 00 along with other parameters – Expected start value CCF is 100% § Incentive component (IC): an extra price on top of the marginal price. – GTS will adjust the incentive component based on how often and for how much volume the SBS enters the Orange and Red Zones – Incentive to market parties to improve their balancing – Expected start value is zero EUR/MWh 78

How will the bidders be informed what is called from them? T = T-1 T = Hour of call T +1 : Lead time BL = 30 min 1 5 T +2 : Lead time BL = 90 min 4 7 Total 30 min volume = -45 T+2 T+3 A -15 0 0 B PV A Does not receive message B T+1 T+2 T+3 15 0 0 Does not receive message 0 -15 C 0 0 15 D -15 -15 D 15 15 15 E 0 -15 0 E 0 15 0 G 0 0 -15 H -15 0 -15 F 79 9 Bidder Clearing Confirmation: • Adjusts POS in hour T+1 of T+2 of T+3 • Contains transactions between GTS and PV • Shows volume en price • Transactions are on virtual point: BAP • Direction opposite to called bid 0 Does not receive message 8 Total 150 min volume = -60 C F 3 Bidder Clearing Confirmation Bid price ladder activation T+1 2 Total 90 min volume = -30 Bid price ladder Activation: • PV receives 1 activation in hour T • Activation tells PV: – locations called means – volume per mean – price • PV must take action (nominate) to make gas flow PV 6 T +3 : Lead time BL = 150 min Does not receive message G 0 0 15 H 15 0 15

Example: SBS is short, PV is called Contractual GTS Bid Activation PV ACKNOW (Bidder) Clearing Confirmation Physical Nomination on location Bid offered Confirmation on location Bid offered 80

Example: SBS is short, PV is called GTS Bidladder Activation PV VPPV Bidder Clearing Confirmation: Called gas transferred from PV to GTS BAP 81

How will the called volume be divided over the causers? T = T-1 T = Hour of call T +1 : Lead time BL = 30 min 1 5 T +2 : Lead time BL = 90 min 4 7 Total 30 min volume = -45 POS 6 2 Total 90 min volume = -30 Causer clearing confirmation: • Called bids divided over causers pro rata to POS • PV receives conf. in hour T • Adjusts POS in hour T+1, T+2, T+3 PV T +3 : Lead time BL = 150 min 3 • Contains transactions between GTS and PV • Shows volume en price • Transactions are on virtual point: BVP • Only causers receive this conf. A 20 -5. 8 -3. 9 -7. 7 B 40 -11. 6 -7. 7 -15. 5 C 80 -23. 2 -15. 5 -31 D 15 -4. 4 -2. 9 -5. 8 E -10 F -25 G -15 H -5 Does not receive message 82 9 Total 150 min volume = -60 Confirmation V= bidladdervolume 8

Example: SBS is short, PV is called and causer Contractual GTS Bid Activation PV ACKNOW (Bidder) Clearing Confirmation (Causer) Clearing Confirmation Physical Nomination on location Bid offered Confirmation on location Bid offered 83

Example: SBS is short, PV is called and causer GTS Bidladder Activation PV VPPV Bidder Clearing Confirmation: Called gas transferred from PV to GTS BAP BVP 84 Causer Clearing Confirmation: Called gas transferred from GTS to PV pro rata to POS

How will the assistance gas be divided? T = T-1 T = Hour of call T +1 : Lead time BL = 30 min 1 5 T +2 : Lead time BL = 90 min 4 7 Total 30 min volume = -45 6 2 Total 90 min volume = -30 Assistence gas clearing confirmation: • POS helpers set to zero • Gas from helpers divided over causers pro rata to POS • PV receives conf. in hour T • Adjusts POS in hour T T +3 : Lead time BL = 150 min 3 8 9 Total 150 min volume = -60 • Contains transactions between GTS and PV • Shows volume en price • Transactions are on virtual points: AVP for causers and AHP for helpers • Both helpers and causers receive conf. POS Conf. causers Conf. helpers POS A 20 -7 0 13 B 40 -14. 6 0 25. 4 C 80 -28. 4 0 51. 6 D 15 -5 0 10 E -10 0 +10 0 F -25 0 +25 0 G -15 0 +15 0 -5 -5 0 +5 0 PV H ∑causers =155 55 from GTS to causers ∑=55 from helpers to GTS 85

Example: SBS is short, PV is called and causer Contractual GTS Bid Activation PV ACKNOW (Bidder) Clearing Confirmation (Causer) Clearing Confirmation (Assistance gas) Clearing Confirmation Physical Nomination on location Bid offered Confirmation on location Bid offered 86

Example: SBS is short, PV is called and causer GTS Bidladder Activation PV VPPV Bidder Clearing Confirmation: Called gas transferred from PV to GTS Assistance gas Clearing Confirmation: Gas from helpers transferred from GTS to PV pro rata to PV’s POS BAP BVP AVP 87 Causer Clearing Confirmation: Called gas transferred from GTS to PV pro rata to PV’s POS

Emergency Measures (EM) Emergency Measure process SBS prognosis for end of current hour Determine EM volume needed Zones Determine EM location / volume distribution Information concerning EM to market EM deployment EM activations to all deployed PV’s Information concerning EM to billing process All POS’s EM confirmations to all causers 88

Timeline for hour T Emergency Measure call: detail 0 5 10 15 20 25 30 30 - 59 60 XX: 14: 30 Publication accountable POS Matching and confirmation process for next hour XX: 19: 30 Publication prognosis SBS of XX: 15 XX: 20: 00 Phone call of CCP to PV’s EM deployment message arrive at PV’s process messages and determine actions or renominations 89 XX: 30: 00 renomination deadline for next hour (incl fast means)

Example: SBS is short, PV is deployed and causer Contractual GTS Determine size and location EM EM Activation (BIDACT) ACKNOW EM provider Clearing Confirmation EM causer Clearing Confirmation Physical EM gasflow starts Nomination on location EM gasflow Confirmation on location EM gasflow 90 PV

Example: SBS is short, PV is called and causer GTS PV VPPV EM Provider Clearing Confirmation: deployed gas transferred from PV to GTS NAP NVP 91 EM Causer Clearing Confirmation: deployed gas transferred from GTS to PV pro rata to PV’s POS

Agenda 1. Introduction and essentials market model Ard Jan Dunnik 09: 30 - 10: 00 2. Context and programmes Walter Crommelin Altinus Meijer 10: 00 – 11: 30 3. Bid price ladder Walter Crommelin Altinus Meijer 11: 30 – 12: 00 Lunch 12: 00 – 12: 45 3. Bid price ladder Walter Crommelin Altinus Meijer 12: 45 – 13: 30 4. Gasport Peter Scholtens 13: 30 – 14: 00 5. Next steps Ard Jan Dunnik 14: 00 – 14: 15 92

Topics Gasport for dispatchers: What does Gasport provide to support you as a dispatcher? § Outline of the changes ahead § Overview of foreseen functionality within Gasport § Sneak preview of Gasport § Questions 93

Outline of the changes ahead: Current Situation https: //gasport. gastransportservices. nl The joint testing phase is ongoing. https: //otis. gastransportservices. nl https: //b 2 b. gastransportservices. nl Nimbus-IM system Dialog system Gea Click & Book system 94 http: //www. gastransportservices. nl

Outline of the changes ahead: To-Be situation Customer portal Internet Information retrieval B 2 B Information Services Internet Allocations Information retrieval POS/SBS 95

Outline of the changes ahead: To-Be situation Differences Gasport v. s. B 2 B information services –B 2 B is a download service which can used for real-time integration of GTS data within customer specific processes (applications). Exchange of XML messages between IT-systems –B 2 B downloads operates with fixed units for example everything is in CET en KWh. –B 2 B Information services POS & SBS services are part of the PV acknowledgment requirements –Gasport is a end-user solution providing predefined information by means of user friendly web pages. –Gasport works with customer adjustable units for example CET or LET, and KWh, MJ, m 3(35, 17) –Only in Gasport market parties can view the Bid Price ladder 96

Outline of the changes ahead: Situation 1/04/2011 https: //gasport. gastransportservices. nl Market Go-Live situation. https: //otis. gastransportservices. nl https: //b 2 b. gastransportservices. nl http: //www. gastransportservices. nl Gea Click & Book system 97

Topics § Outline of the changes ahead § Overview of foreseen functionality within Gasport § Sneak preview of Gasport § Questions 98

Gasport: A new portal for GTS customers Information retrieval Role-based for GTS customers - Directly Connected Parties - Local Distribution Companies - Neighbouring Network Operators - PV-ers (programme responsible parties) - Storage Operators - Suppliers (in the national grid) 99

Gasport: A new portal for GTS customers Role-based information retrieval Customer Information roles Role based for GTS customers - PV-ers PV Dispatching CP Information retrieval. Dispatching NNO Dispatching Invoice verification Data analysis Dispatching • POS/SBS • NRT Metering • Bid Price Ladder • NRT Metering - Direct Connected Parties Detailed Network information role - Neighboring Operators (example) - Local Distribution Companies - Suppliers • NRT Allocation 100

Overview information role dispatching § Balancing – – Balancing position Balancing market Calls today Balancing factors § Near Realtime Allocations – Near-realtime allocations per network point – TTF balancing relations – Bid price ladder allocations § Near Realtime Metering – Energy per LDC networkpoint (only for license B) § Account overview – Bid price ladder account overview 101

Topics § Outline of the changes ahead § Overview of foreseen functionality within Gasport § Sneak preview of Gasport § Questions 102

Sneak preview of Gasport: Showcase § Showcase is not role-based, full functionality is shown § The data shown is fictitious, not based on real data § All shown screens are still work in progress 103

Questions 104

Agenda 1. Introduction and essentials market model Ard Jan Dunnik 09: 30 - 10: 00 2. Context and programmes Walter Crommelin Altinus Meijer 10: 00 – 11: 30 3. Bid price ladder Walter Crommelin Altinus Meijer 11: 30 – 12: 00 Lunch 12: 00 – 12: 45 3. Bid price ladder Walter Crommelin Altinus Meijer 12: 45 – 13: 30 4. Gasport Peter Scholtens 13: 30 – 14: 00 5. Next steps Ard Jan Dunnik 14: 00 – 14: 15 105

5. Next steps The joint tests are the next steps to an operational market model 106

5. Next steps Everything – documentation wise - you could ever wish for: http: //www. gastransportservices. nl/en/markttransition/documents Good starting point: The King of all Sheets: http: //www. gastransportservices. nl/uploads/bestanden/44 db 0 d 18 eba 1 -4379 -9 c 4 a-b 3 c 1 b 35 b 5455 107

5. Next steps All information concerning information exchange is summarized in the “King of all sheets” Information on the current transition process under “Joint Tests” Just in case someone else came up with the same question before you: the Q&A 108

5. Next steps Questions: Your account manager or Joint Test Phase: gts_info_exchange@gastransport. nl or Everything else: markettransition@gastransport. nl 109