Market dialogue on market area merger - Essen, 12 February 2020
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Market dialogue
on market area merger
Essen, 12 February 2020
Welcome 2
Agenda
13:00 Welcome and introduction Ralph Bahke, ONTRAS Gastransport
GmbH
Dr Heiko Lohmann
13:15 Kap+ and KOMBI Jürgen Fuhlrott, Open Grid Europe
GmbH
14:00 Coffee break
14:30 Operational issues relating to the Torsten Frank, NetConnect Germany
market area managers GmbH & Co. KG
Dr Sebastian Kemper, GASPOOL
Balancing Services GmbH
around 16:00 End of event
3
33rd Madrid Forum Trigger, impact, outlook
33rd Madrid Forum
} Trigger
} Impact
on 24 January 2020
} Outlook
34th Madrid Forum; 29/30 April 2020
5
KAP+ and KOMBI Interconnected and goal-orientated
KAP+ and KOMBI Interconnected and goal-orientated 7
KAP+ (BK7-19-037) – Status I
} What happened so far?
} 23.05.2019 – Opening decision ("Einleitungsverfügung")
} 05.07.2019 – End of 1st consultation period
} 01.10.2019 – Presentation of concept
} 08.11.2019 – End of 2nd consultation period
} 03.12.2019 – Submission of the process description
} 24.01.2020 – End of consultation with neighbouring Member States
} 10.02.2020 – Start of hearing of party to the proceedings
} 21.02.2020 – End of hearing
8KAP+ (BK7-19-037)- Status II
} Design of decision tenor
} Cancellation of decision BK7-13-019 from 20.09.2013 for the duration of the
test phase, in order to enable the offering of overbooking capacities
} The TSO concept for the overbooking an rebuying system (incl. process
description MBI and capacity buy-back) is approved with the following changes
} No price cap for MBI and capacity buy-back
} In case of capacity buy-back the prohibition of network harmful renominations does only
occur, if a threat for the network integrity is expected according to estimation of the
TSO
} Additional capacity can be offered for 2 years
} Acceptance of costs is decided by KOMBI
} In addition following regulations apply
} Information about offered additional capacity to BNetzA yearly until 1 May
} Submission of a joint report on the usage of MBI and capacity buy-back until 1.12 every
year (first-time 1.12.2022)
9KOMBI (BK9-19-606) – Status
} What happened so far?
} 16.10.2019 – Start of process
} 20.12.2019 – Publication of draft decision
} 28.01.2020 – Comment by gas TSOs on the draft decision
} 31.01.2020 – End of consultation period
} What is still unresolved?
} Recognition of MBI and buy-back costs as volatile or permanently
non-controllable costs
} Reference to unbiassed review of this matter for the period after the
test phase planned for KAP+
} What happens next?
} Wait for draft decision
10Annual auctions from 2020
Annual auction Offer for additional capacity Comments
Period prior to market
GY 2020/2021: no additional capacity area merger
Probably the first GY
GY 2021/2022: additional capacity after the market area
merger
GY 2021/2022: additional capacity
GY 2022/2023: additional capacity
GY 2023/2024: additional capacity
} Decisions on KAP+ and KOMBI required
} Additional capacity offer must come from the individual TSOs
} During the test phase, the additional capacity will be offered for one GY only
} Total capacity offered is expected to be in line with 2018 NDP
11Operational issues relating to the market area managers
Agenda
1. Introduction
2. Update on network balancing
3. Update on levies
4. (Biogas) balancing groups and network accounts
5. Traders’ Christmas wish list for the new MAM
13Introduction
One year into the implementation project...
Review and outlook
Status overview;
First information e.g. on
…
balancing groups and
network accounts
Start of MAM Publication of Market dialogue Market dialogue
implementation project the name THE in Düsseldorf in Berlin
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021
Market dialogue Market dialogue Market dialogue Planned start of
in Essen in Berlin in Essen THE market area
Implementation project
presented for the first
time; Status overview;
Presentation of THE logo
Overview of questions
to be clarified
15MAM project status
} Overall, the MAM project is making good progress
} Progress is in line with the respective timetables
} The requirements to be met by the future THE systems have
been recorded and described
} The selection process for the IT systems required has been
completed
} The contracts have been awarded and the programming work
has started
} The MAMs still have to make a multitude of operational
process decisions, which may have an impact on the
implementation of the IT systems
} Hence, further market and BNetzA involvement is
planned where it makes sense and is possible
16Update on network balancing
Future network operator areas / balancing zones
Today’s 11 network operator areas / balancing zones (zones) are
to be left unchanged:
H-gas zones L-gas zones
GSC GTG
GUD GUD
Central ("Mitte") NWG
North (“Nord") East (“Ost")
ONTRAS West
South (“Süd")
18Future portfolio of exchange products
Expected use of short-term exchange products (MOL 1 and 2)
Within Day/Day Ahead/Bank Holiday Hour
Global Global*
H-Gas
L-Gas L-Gas*
TTF TTF
H-gas zones (GSC, GUD, Mitte, Nord, ONTRAS,
Süd)
L-gas zones (GTG, GUD, NWG, Ost, West) L-gas zones (Ost, West, GUD**)
* Hourly products (if any) will be shown and traded by THE as ‘flat’ products (“Bandprodukt”)
** Used temporarily use as part of the L/H-gas conversion
19Future portfolio of bilateral products Bilateral products likely to be used (MOL 4) Long-Term Options Short-Term Balancing Services Short-Call Balancing Services Flexibility Services 20
Update on balancing neutrality charges
Planning model for balancing neutrality accounts
} There are some structural differences between the two market areas
} These differences include in particular the network topology and the
market/customer situation (e.g. SLP vs. RLM vs. EXITSO)
} As a result, there are different approaches to implementing GaBi Gas and
Konni Gas under the existing decisions
} In a future joint market area, these different aspects will be brought
together in a common planning approach
} This will result in some overall changes compared with the current (still
separate) balancing neutrality calculations. The exact impact of these
changes cannot be predicted at this stage.
} The balancing neutrality charges applicable to THE for the first time during
the 2021/2022 period will be published in August 2021 in accordance with
regulatory requirements
22 12.02.2020Merging of the balancing neutrality accounts
} All balancing neutrality account balances will be transferred to
THE’s balancing neutrality accounts at the end of the
2020/2021 balancing neutrality period
} The existing balances will be the starting balances for THE
balancing neutrality accounts
} The new THE balancing neutrality accounts will be continued
after 1 Oct. 2021 in accordance with the provisions of the GaBi
Gas and Konni Gas rulings, as amended
} The MAMs will liaise with BNetzA (among others) to ensure
that the balancing neutrality accounts are merged in a way that
complies with GaBi Gas and Konni Gas requirements
23(Biogas) balancing groups and network accounts Balancing group management from October 2021
Dealing with balancing groups: Existing balancing groups
receive new nomenclature
GPL THE
NCG THE
1 Jun 2021 1 Oct 2021
} All balancing group contracts will remain in place and will be transferred to the Trading Hub Europe
} The balancing group designations of the old balancing groups will be migrated to the new nomenclature
} The contracts for connecting balancing groups will be remain in force will be transferred
Impact on BGMs:
} BGMs with business activities in both market areas can decide for themselves which contracts they want to
continue
} BGMs may have to adjust BG connection à Obligation to connect H- and L-gas balancing groups
Impact on network operators:
} Old BG designation can be used until 30 Sep 2021 or longer for periods prior to 1 Oct 2021
} New BGs may not have to be communicated via the GeLi-Gas process because a mapping list will be
published
25Traders' proposals for continuing the balancing groups
} Following the market area merger, the balancing groups of NCG and
GPL will be continued under a new nomenclature
à current mandate for project
} The following alternative implementation proposals were made from
within the group of traders:
n-to-one mapping: A BGM can (but does not have to) merge NCG and GPL balancing
groups in advance but will then have to independently (re-)structure the BG hierarchy.
Traders who do not make use of this option will continue to be governed by the
one-to-one mapping arrangements: i.e. no obligation to take action.
26 05.11.2019MAMs' proposals for continuing the balancing groups
} First step: Direct migration of the GPL and NCG BGs to the new THE BG nomenclature
} The BGMs will have the opportunity to reorganise their balancing group structures
during the period from 1 Jun to 1 Aug 2021 (GeLi deadlines to be observed) before the
start of the THE market area
} Every BGM will see the migration table in the THE Portal along with an overview of all
valid BGs
} The THE Portal will offer the option to terminate BGs and SBGs no longer needed
(which will require an additional agreement) or to enter into new BGs and SBGs
} Furthermore, there will be the option to terminate and then re-establish BG
connections
} Market locations will have to be allocated to BGs/SBGs using the regular master data
change process (UTILMD) via the shipper-to-network operator route
} The MAM can no longer intervene in contractual relationships, which means:
} no transfers from SBG to another BG
} BG connections can only be changed by the BGMs affected
27(Biogas) balancing groups and network accounts Biogas balancing group management from October 2021
Dealing with balancing groups: Existing biogas balancing
groups receive new nomenclature
Dealing with biogas bálancing groups in balancing period 2021
• Existing NCG and GPL biogas balancing groups receive new THE biogas balancing nomenclatur as of
1 October
• Biogas balancing group managers are able to check existing balaincing group linkings and reassign as of
1 June 2021. Constructs of the two market areas can brought together in order to follow the
provisions of KONNi Gas
• Important on biogas balancing groups (in contrast to natural gas balancing groups) is,that the biogas
balancing period is usually one calender year and the year 2021 therefore includes three market areas
(1 January to 1 October NCG/GPL and 1 October to 1 January THE)
• Due to the continuation of the biogas balancing groups in the THE market area and due to the
possible balancing group linking (as of 1 October 2021) the following settlement process with regard
to the billing is aspired:
• One balancing period for 2021
• One flexibility transmission process
• One settlement of the biogas balancing groups for 2021 (price for the settlement of conversion
fee, overrun of flexibility frame and end balance in vote)
• Biogas balancing groups with balancing period gas year are going to be settled per market area
29(Biogas) balancing groups and network accounts Network account management from October 2021
Network account migration: New network account
also valid for old periods
Special feature: market area overlaps ("MGÜ")
THE nomenclature GPL
Migration of billing data
NCG/GPL THE
"data" "data" THE nomenclature
Migration of billing data
NCG
1 Oct 2021
1 Jun 2021 1 Oct 2021
} Trading Hub Europe will introduce new nomenclature } From 1 Oct 2021, market area overlaps will only have
for network accounts effective 1 Oct 2021. one THE network account
} The existing network accounts will be migrated to } For cancellations still relating to the NCG and GPL
the new nomenclature, so all old periods will be market areas, the network operators will only send two
processed via the new network account cancellation INVOICs and one new SSQNOT to THE
Impact on network operators: Impact on network operators:
} The network operators will use the old network } The network operators will use the old network
account numbers up to and including 30 Sep 2021 account numbers up to and including 30 Sep 2021
(also for declarations made for October 2021) (also for declarations made for October 2021)
} From 1 Oct 2021, only the new nomenclature can be } From 1 Oct 2021, only the new nomenclature can be
used for old periods prior to 1 Oct 2021 (correction used for old periods prior to 1 Oct 2021
notification, clearing, MMMA)
31Traders’ Christmas wish list for
new MAMTraders' Christmas wish list for the market area merger 33
Publications: Wishes and their planned implementation (1/3)
Wish Planned implementation
"[...] The homepage of the MAM website The homepage will have a news module
should show all news, press releases and which will feature news, press releases and
information about data updates [...] which information on the availability of new data.
are not provided on daily basis [...]"
"[...] Updates should be made available as an All news published in the news module will
RSS feed. All new information should be be made available in an RSS feed.
sent out on a monthly basis [...] by Furthermore, THE is planning a newsletter,
newsletter [...]" containing the latest news as well as further
information. The newsletter will require
separate subscription.
34Publications: Wishes and their planned implementation (2/3)
Wish Planned implementation
"[...] Published data [...] should be displayed Where appropriate, information on the THE
both in tabular and graphical form, with the website will be provided both graphically
option of adjusting the time range and and in tabular form.
selecting additional filter settings [...]". A free filter has been selected as "standard
filter", but it cannot be used for every display.
Useful additional filter options will be
implemented.
"[...] data should allow downloads as a csv or All presentations will be available for
xlsx file and should be retrievable via an download from the THE website as csv files.
XML interface [...]". XML retrieval will also be implemented.
"[...] messages from TSOs or other The THE MAM will only publish information
information which have no relation to the relating to THE.
functions of the MAM should not be
available on the MAM pages [...]".
35Publications: Wishes and their planned implementation (3/3) Wish Planned implementation "[...] All old messages should be made Implementation options to be checked available in an archive [...] Information and data prior to the market area merger should also be preserved [...]". "[...] Nice-to-have: Information such as Will be implemented updated network balancing trends, call orders for the previous day, new market participants, news updates from homepage, the previous day's balancing gas price and current key figures made available at a glance in the form of a daily report or a kind of cockpit [...]". "[...] Clearing window shown on Implementation options to be checked homepage or portal [...]" 36
Portals: Wishes and their planned implementation (1/4)
Wish Planned implementation
"Nice-to-have: Show clearing window on the Option for portal:
homepage or portal (also graphically)." Clearing window on portal could
include automated display of the
current clearing periods (e.g.
"Clearing period for 01/2020 starts
on ...", "Clearing period for 12/2019
ends on ...")
"The proposal to have only one MAM recommendation: Could be
comprehensive portal in future makes implemented after the merger as and
sense. However, it is unclear to us why the when necessary
tender platform cannot be integrated into
such a portal. This could perhaps be done in a
subsequent step after the market area
merger."
37Portals: Wishes and their planned implementation (2/4)
Wish Planned implementation
"Allocation of clearing numbers is more Implementation options to be
intuitive and better with Gaspool. The checked
allocation process for clearing numbers should
therefore be taken over by Gaspool. […]“
"[...] but the export options [for reports] as Implementation options for download
Excel files are better at GPL (Download processes to be checked
Manager). Gaspool should in particular look at
the download function for hourly data. Hourly reports will also be available
in the new portal.
"The option of transferring biogas This functionality will also be available
flexibility in the portal should be retained." after the merger.
38Portals: Wishes and their planned implementation (3/4) Wish Planned implementation "The situation concerning contact person Please specify requirement more changes at the companies should be precisely. improved." "The very clear and intuitive display of the BG This functionality will also be available structures as well as the functions for after the merger. concluding balancing group contracts and the administration of balancing group allocations should be maintained. There should still be an automatic message when the BG connection expires". Finally, a contact person (single-point-of- This is planned. The assigned account contact) at the MAM during the changeover manager will be displayed in the phase for specific queries would be welcome. portal. 39
Portals: Wishes and their planned implementation (4/4)
Wish Planned implementation
"A simplified termination process for Under review for BGs.
balancing groups no longer required after
market area merger should be provided via In addition, there will be a function in
the portal." the portal to terminate sub-BGs with
three months’ notice at the end of
the month. For this purpose, a new
button will be provided for each
contract. The customer will be able to
determine the time of termination.
40Market communication: Wishes and their planned
implementation (1/3)
Wish Planned implementation
"[...] establishing an AS4 connection in AS4 connections will be offered for market
connection with Ediga's XML [...] " communication / nominations.
"[...] In principle, as many formats as possible When THE starts, it will be possible to use
should be made available [...]." the current news version and the previous
version on the input side. On the output
side, only the current format will be used.
41Market communication: Wishes and their planned
implementation (2/3)
Wish Planned implementation
"[...] one AS2 connection each for VTP and THE will adhere to the regulatory
GaBi Gas [...]" requirements and will only set up one
communication link per market partner for
the purpose of one-to-one communication.
"[...] fallback option for when the Still to be assessed as part of the THE
nomination system is down would be project
desirable [...]"
"[...] nomination of only net values instead of The proposal has been included in the MAM
both directions of flow would be desirable project. A review of the (technical as well as
[...]" regulatory) options has not yet been
completed.
42Market communication: Wishes and their planned
implementation (3/3)
Wish Planned implementation
"[...] NOMRES should include the To be implemented by THE
counterpart’s nomination track [...]"
"Number of VTP identifiers, depending on Still being looked at
the REMIT messages for ACER [...]"
"[...] technical changes should be defined 12 Planned for THE as early as possible, but this
months before the market area merger [...]" will also depend on the KOV process
(among others), so THE cannot give a
guarantee.
Further information regarding the planned
system adjustments and their effects are
intended for the next market dialogue event
in June 2020.
43Thank You! 44
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