EASEE pres AFG

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EASEE-gas
European Association for the Streamlining
of Energy Exchange - gas
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EASEE-gas

• Why the need ?
• The US example
• The European project

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WHY THE NEED ?
Before liberalisation
Few participants, stable and long lasting
relationships
After liberalisation
Many players, short lived and fast changing
relationships Hence need to streamline
transactional processes
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BUNDLED BUSINESS MODEL
Producer
Gas Merchant
LDC
End user
physical
contractual
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GENERIC CORE BUSINESS MODELLiberalised market
commodity
commodity
Producer
Trader
shipping
Title transfer
hand over
capacity
tittle transfer
capacity
Transporter
Shipper
commodity
hand over
shipping
title transfer
commodity
End user
supply base management
Supplier
physical
contractual
notional
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GENERIC BUSINESS MODELLiberalised market
Non gas services
Gas services
Core Business Partners
Storage Terminal Hub etc.
Legal Finance Software etc.
physical
contractual
notional
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THE US EXAMPLE Gas Industry Standards
Board GISB
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THE US EXAMPLE Gas Industry Standards Board
created in 1994 with a mission to
develop and promote standards to simplify and
expand electronic communications and to simplify
and streamline business practices that will lead
to a seamless market place for natural gas
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THE US EXAMPLE GISB achievements

• 7 years of existence
• 400 business practices established
• 40 transactions standardised
• 5 model agreements
• Transformed to NAESB to include power industry

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NAESB membership

• Wholesale Gas (ex GISB) 133
• Retail Gas 42
• Wholesale Power 169
• Retail Power 47

End Users 19 Distributors 25 Pipelines
41 Producers 13 Services 35
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THE EUROPEAN PROJECT
Initiated by the EDIGAS-group Supported by EU
and by CEER Created through joint Task Force
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THE EUROPEAN PROJECT
Task Force participants

• EFET
• OGP
• Eurogas
• GTE
• Edig_at_s
• Eurelectric
• GEODE

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THE EUROPEAN PROJECT
EASEE-gas mission statement

• To develop and promote common practices to
• simplify and streamline business processes
• between the stakeholders that will lead to an
• efficient and effective European Gas Market

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THE EUROPEAN PROJECT
EASEE-gas basic principles

• Open, independent organisation
• Full members vote and fee
• Associate members no vote, no fee
  
• Driven by volunteers
• Financed through membership fees

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FULL MEMBERS

• Companies or divisions with separate
• accounts
• Can join through one or more segments
• Annual fee EUR 1500 per segment

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ASSOCIATE MEMBERS

• Government agencies
• Regulators
• Not-for-profit organisations
• Consumer groups
• Individuals et al.

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Membership evolution
Full
Associate
14.03.2002 09.09.2003
6 60
0 13
20 countries in outside EU
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60 Full Members
Producers 6 Traders Shippers 15 Transporter
s 19 Suppliers 5 Service Providers
9 Distribution Netw. Op. 5 Retail Suppliers
0 End Users 1
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Comments

• Segments 6 are active
• Retail Suppliers still lagging
• End Users disappointing

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13 Associate Members
EUROGAS EURELECTRIC EFET ENERGIENED GEODE G
TE IFIEC OGP AFG ANRGN ENERGIE
CONTROL MARCOGAZ FEDERGASACQUA
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Key Events

• 2002
• Jan - March Task Force drafts the Articles of
  Association.
• 14th March EASEE-gas is legally founded in
  Paris, offices at AFG
• April Initial Working Groups are established
  Rules are drafted.
• December 2nd GMoM Rules are adopted.
• 2003
• March 3rd GMoM and election of 1st Executive
  Committee Members.
• April Hired General Manager
• August First CBP on Unit Harmonisation bar,
  C, m³(n), KWh(25,0)

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Working Groups
1) Business Rules 2) Message Specification 3)
Edig_at_s Message Codification and
Maintenance 4) Real-time Data Exchange 5) IT
Communication Network 6) eb XML 7) Harmonisation
of Units 8) Gas Quality Harmonisation
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Working Groups General comments

• Initial focus on operational matters
• strongest effort so far on communications
• - high data flow as number of shippers grows
• - abolish manual data handling
• main focus now on gas quality and business rules

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EASEE-gas

• Provides a platform for discussion
• Voluntarism is better than regulation
• The US example shows it works
• Europe may prove a bit harder

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