Guidelines for Good Practice

1
Guidelines for Good Practice

• GTE comments
• Madrid Joint WG 15 July 2003

2
GTE Members in July 200330 TSOs from 22
countries
3
Guidelines for Good PracticeProcess (1)

• 8 February 2002 GGP agreed at the 5th Madrid
  Forum
• 21 October 2002 Commissions report on
  implementation and proposal for revised GGP
• 31 October 2002 6th Madrid Forum set up Specific
  WG to discuss revised version
• 18 December 2002 Meeting of the Specific WG
• 27 January 2003 GTE revised GGP including reasons
  for changes
• 19 February 2003 GTE presentation at the Madrid
  JWG, discussion

4
Guidelines for Good PracticeProcess (2)

• 1 April 2003 GTE Workshop with users of the grid
  (CEFIC, EFET, Eurelectric, Eurogas, IFIEC,
  OGP)
• 24 April 2003 New GTE version of GGP suggesting
  in particular a pragmatic two-stage approach
• May-July 2003 Reactions from Commission, IFIEC
  and Eurelectric (EFET also sent comments to
  the Commission)
• May-July 2003 GTE survey among its members
• 10 July 2003 Present GTE version of GGP taking
  into account the reactions received including
  a specific timetable for implementation based
  on survey

5
Guidelines for Good Practice Points of
discussion (1)

• 1. GTE welcomes the IGM Directive adopted in June
  2003.
• GTE is on the opinion that the wording of the IGM
  Directive should be used in the GGP. GTE cannot
  agree to an interpretation.
• 2. GTE strongly promotes the non-discriminatory
  principle
• Avoid asymmetric regulation favouring specific
  customers which would lead to distortional effects

6
Guidelines for Good Practice Points of
discussion (2)

• Interruptible capacity only when firm capacity is
  sold out
• To avoid price erosion
• GTE supports secondary trading of capacity by
  original owner of that capacity
• as well as use-it-or-lose-it (on an
  interruptible basis) if the secondary market is
  not used.
• GTE supports anti-hoarding mechanisms.

7
Guidelines for Good Practice Points of
discussion (3)

• 4. Tariff may be cost-reflective or based on
  (inter)-national benchmarking
• In some GTE member countries tariffs may be based
  on regulatory asset based cost methodology
• In others countries tariffs may be based on
  international benchmarking of tariffs (as well as
  other methodologies).
• Both methods are approved by the regulators in
  the relevant Member States.

8
Guidelines for Good Practice Points of
discussion (4)

• Publication of available capacity,
  3-minus-shipper rule
• GTE supports the publication of available
  capacities
• GTE reports on Calculation Methodologies
• When there are less than 3 shippers, it should
  be, at the request of the shipper(s), be possible
  not to publish to prevent breach of
  confidentiality. However there must be
• - clear evidence that a TSO is not entitled to
  publish the relevant information
• - renewal of this evidence on a regular basis
• - an element of approval, as implied by the
  Conclusions of the 6th Madrid Forum.

9
Guidelines for Good Practice Points of
discussion (5)

• Specific timetable
• All interested parties recognized the need to
  adopt a two-stage approach as suggested by GTE.
• Short-term objectives 1 October 2003
• Medium-term objectives 1 July 2005
• However some objectives will be met by a number
  of GTE members before the end of 2004.

10
Guidelines for Good Practice TSO achievements

• Note Result of GTE survey, excluding TSO with
  derogation, in two cases answers unclear due to
  ongoing negotiations