the system that connects TNC New Contract Model 2 the system that connects Conclusion of Contracts Contracted Capacity AllocationCCA Capacity Allocation CA Contracted Capacity Allocation ID: 468745
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Slide1
1
Warsaw, 16 October 2012
the
system
, that connects
TNC New Contract ModelSlide2
2
the
system
,
that connects
Conclusion of ContractsContracted Capacity Allocation(CCA), Capacity Allocation (CA)Contracted Capacity Allocation
Auction;
Bundled Product.
Contracted Capacity Allocation for DAY AHEAD Services.
Change
of Supplier
.Slide3
3
the
system
,
that connectsConclusion of ContractsSlide4
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4
the
system
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that connects4
Transmission Contract
All transmission contracts will be framework contracts.
Among the transmission contracts, the interoperator transmission contract (ITC) with the SSO or DSO can be identified.
Each framework contract will have separate CCA or CA concerning specific points.
CA
CCA/CA
PP
CONTRACT
Contracted Capacity Allocation (CCA)
Capacity Allocation (CA)
Physical entry/exit point
Entry/exit points
Duration of CCA for a given point
Duration of CCA for a given point
Type of capacity – firm/interruptibleSlide5
5
5
the
system
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that connects5
Transmission Contract
Transmission contracts are concluded for an indefinite term.
Contracted capacity allocation (CCA) nd capacity allocation (CA) is performed for a maximum 4 years.
In the moment of concluding the transmission contract and submitting the financial security the right is conveyed to use the capacity on:
the Virtual Point Gas Exchange;
OTC Virtual Point.Slide6
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the
system
,
that connectsContracted Capacity Allocation(CCA), Capacity Allocation (CA)Slide7
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7
the
system
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that connects7
CCA/CA
DSO
2
UGS
GAZ-SYSTEM S.A.
ONTRAS
TGPS
FPWY
R
FPWE
MFPWE
SSO
FPWY
FC
MFPWY
SSO
Mine
denitration
FPWE
MFPWY
DSO
The Network User orders the capacity
The DSO or SSO order the capacitySlide8
8
8
the
system
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that connects8
CCA/CA
Physical entry and exit points – points with a concrete location where the quantity and quality of the gaseous fuel is measured.
Locations where contracted capacity allocation takes place (contracted capacity).
The entity authorised to the capacity at the FPWE or FPWY is called the
Network User.
Confirmation of contracted capacity allocation is an annexe to the transmission contract or the interoperator transmission contract (ITC) -
contracted capacity allocation "CCA.”
A Tariff fee is charged for use of the FPWE/FPWY.
Gas quality settlements are performed at the FPWE/FPWY.Slide9
9
9
the
system
,
that connects9
CCA/CA
DSO
2
UGS
GAZ-SYSTEM S.A.
ONTRAS
TGPS
Mine
denitration
PWE
WPWE
SSO
PWE
PWY
R
WPWY
DSO
WPWY
SSO
PWY
FC
Virtual Point
WPWY
WPWESlide10
10
the
system
,
that connects
10
CCA/CA
Entry and exit points take part in the transmission of gaseous fuel.
For the entry and exit points:
nominations are made,
allocation of the quantity of the gaseous fuel is performed,
imbalancing is ascertained.
The entity authorised to use the entry or exit point is called the
Shipper.
Confirmation of the right to use the give entry or exit point is the
capacity allocation (CA).
Use of the contract points, including the Virtual Point, is free of charge.Slide11
11
11
the
system
, that connects
11Transmission Contract
DSO
TSO
PWE
OTC
Gas Exchange
PWY
FC
PWY
DSO
Exit Point
from DSO
An entity introducing the gaseous fuel from other transmission systems or mines that wants to sell it at a Virtual Point should:
Enter into a transmission contract with GAZ-SYSTEM S.A.
The contract entitles to capacity at the WPWE
GG
/WPWY
GG
and WPWE
OTC
/WPWY
OTC
(CA).
To obtain CCA/CA for FPWE/PWE.
PWY
SSO
PWE
SSOSlide12
12
12
the
system
, that connects
12Transmission Contract
The entity being connected to the transmission system that wants to purchase gaseous fuel at the Virtual Point should:
Enter into a transmission contract with GAZ-SYSTEM S.A.
The contract entitles to capacity at the WPWE
GG
/WPWY
GG and WPWE
OTC/WPWYOTC (CA).
Obtain CCA/CA for FPWY
FC
/PWY
FC
.
OTC
Gas Exchange
DSO
TSO
PWE
PWY
FC
PWY
DSO
Exit Point
from DSO
PWY
SSO
PWE
SSOSlide13
13
13
the
system
, that connects
13Transmission Contract
The entity being connected to the distribution system that wants to purchase gaseous fuel at the Virtual Point should:
Enter into an distribution contract with the DSO.
Enter into a transmission contract with GAZ-SYSTEM S.A.
The transmission contract entitles to capacity at the WPWE
GG
/WPWY
GG and WPWEOTC
/WPWY
OTC
.
Obtain capacity allocation (CA) for the PWY
DSO
to the distribution zone ,
to which they are connected.
OTC
Gas Exchange
DSO
TSO
PWE
PWY
FC
PWY
DSO
Exit Point
from DSO
PWY
SSO
PWE
SSOSlide14
14
14
the
system
, that connects
14Transmission Contract
An entity that wants to transport gaseous fuel to or from the storage facility should:
Conclude an agreement with the SSO.
Enter into a transmission contract with GAZ-SYSTEM S.A.
Obtain capacity allocation (CA) for the points PWY
SSO
and PWE
SSO
OTC
Gas Exchange
DSO
TSO
PWE
PWY
FC
PWY
DSO
Exit Point
from DSO
SSO
PWY
SSO
PWE
SSOSlide15
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the
system
,
that connectsContracted Capacity Allocation (CCA)Auction;
Bundled Product.Slide16
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the
system
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that connects16
Contracted Capacity Allocation (CCA)
The introduction of auction mechanisms at the connections with other gas systems in the EU, which makes it possible for the most interested entities to enter the market and may ensure the operator additional means for the development of those connections.
Implementation of the capacity allocation procedure via an auction based on rules resulting from the draft Network Code on Capacity Allocation (CAM NC) prepared by ENTSO’g based on Directive 2009/73/EC.
The simplification of the procedure of changing the seller of the gaseous fuel and increasing its efficiency for customers wanting to select a new seller.Slide17
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the
system
, that connects
17Contracted Capacity Allocation (CCA)
Point
Allocation Method
Physical entry points from other transmission systems, e.g:
Lasów, Cieszyn
Drozdowicze
Włocławek/Lwówek
Auction;
Physical exit points to the final customer
Physical entry points from mines
Physical points to/from the mixing facility, denitration facility.
Customer
or entity exploiting the given structure performs
contracted capacity allocation
Contracted capacity allocation (contracted capacity) is dedicated separately to FPWE and FPWY.
The contracted capacity allocation procedure – contracted capacity allocation
and the change in contracted capacity takes place in a "time window.”
If the demand for capacity (contracted capacity) exceeds the technical capacity, the capacity is allocated.Slide18
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the
system
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18Contracted Capacity Allocation (CCA) - Auction
AUCTION
Period for submission of applications in capacity allocation procedure
1 March
15 March
15 May
31 May
1 working day of June
4 working day of June
30 June
TSO published information on:
The Contracted Capacity Allocation (CCA)
The Auction
The Allocation by the Final Customer
The TSO published information on the capacity allocation within the auction during 5 working days from the completion of the auction
Registration on the auction platform
Submission by the participants of the procedure signed CCA along with the financial securitySlide19
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the
system
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The auction is conducted on an internet platform.
The auction procedure ensures complete anonymity of the procedure participants.
The only entities that can take part in the auction are:
Those that concluded a transmission (framework) contract,
Those that were informed by Gaz-System S.A. of having exceeded the available capacity and of the necessity of conducting the auction,
Those that registered on the website (platform) and obtained a login.
The auction procedure has a multi-step format.
Contracted Capacity Allocation (CCA) - AuctionSlide20
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the
system
, that connects
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Auction Organisation:
The Price Tariff as the Starting Point –
the object of the auction is only an auction premium
;
The prices will be called out in an offer window
until the total submitted quantity bids will be smaller than and equal to the quantity of the capacity offered by the TSO;
Rising prices – increase in set price steps;
Small and large price steps are defined for each product included in the allocation procedure;
Contracted Capacity Allocation (CCA) - AuctionSlide21
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the
system
, that connects
21
Contracted Capacity Allocation (CCA) - Auction
Price Steps -
determine the size of the mark-up for the tariff fee
Small Price Steps
1 cent per kWh/h
Annual Products
2
Monthly Products
Quarterly Products
0.5
0.2
Large Price Steps
1 cent per kWh/h
Annual Products
10
Monthly Products
Quarterly Products
2.5
1Slide22
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the
system
, that connects
22
Contracted Capacity Allocation (CCA) - Auction
If the total amount of the quantity bids is
at the very start smaller or equal to the
quantities of offered capacity, the capacities are sold and will be allocated respectively to all the bids made, in their full quantity at the tariff price.
Price Stage
Q4
Shipper 1
Available Capacity
5
4
3
2
150
150
150
150
Shipper 2
Total
1
150
150
100
50Slide23
23
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the
system
, that connects
23
Contracted Capacity Allocation (CCA) - Auction
If on the first day of the auction the quantity of the capacity in the submitted bids
is greater
than the quantity offered at the auction, the next offer windows will be open – each with a large step price mark-up.
If the total quantity of the capacity in the submitted bids after closing of the offer window
is equal to
the offered quantity, the auction is closed. The capacity will be awarded pursuant to the quantity bids submitted throughout the duration of the offer window at a price with a mark-up in relation to the tariff price.
Price Stage
Q4
Shipper 1
Available Capacity
5
4
3
2
150
150
150
150
150
100
50
Shipper 2
Total
1
150
200
150
50Slide24
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the
system
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24
Contracted Capacity Allocation (CCA) - Auction
Price Stage
Q4
S1
avail. cap.
5
4
3
2
150
150
150
150
200
50
100
50
100
100
S2
Total
1
150
300
150
150
Price Stage
Q4
S1
avail. cap.
4
3
2/3
2
150
150
150
150
200
50
100
100
50
40
100
140
100
S2
Total
1
150
300
150
150Slide25
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the
system
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25
Contracted Capacity Allocation (CCA) - Auction
The submitted bids can be replaced with new ones until each offer window is closed.
Once the offer window is closed, the submitted bids are binding until the time another offer window opens.
In given offer windows the quantity offers may be the same or may be reduced (down to 0) in relation to the offer directly preceding that one,
however, they cannot be higher
.Slide26
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the
system
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Contracted Capacity Allocation (CCA) - Auction
The object of the auction is the Sos fee.
the fee is paid monthly.
Due to this consisting of management of contractual congestion, the TSO charges a fee which is calculated as follows:
OZO = Sos * Mp * T
where:
OZO -
fee for management of contractual congestion [PLN]
Sos -
fee rate for the management of contractual congestion [PLN/(kWh/h)h]
Mp -
capacity (contracted capacity) allocated within the auction [kWh/h]
T -
number of hours in the settlement period [h]Slide27
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the
system
, that connects
27
Contracted Capacity Allocation (CCA) - Auction
the same quantity of capacity is acquired on both sides of the point (within one transaction on a common platform) by the same entity
but
two separate contracts with two TSOs
two separate nominations
Exit
Entry
Contract
Nomination
Contract
Nomination
Lasów
Auction of bundled capacitySlide28
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the
system
, that connects
28
Contracted Capacity Allocation (CCA) - Auction
0
2012
2013
2014
2015
2016
2017
2018
The first auctions of bundled products will be held in June 2013.
28
Offered for 3 quartersSlide29
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the
system
,
that connectsChange of
SupplierSlide30
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the
system
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that connects30
Change of Seller
In order to develop competition on the internal gas market, large customers that are not households should have the opportunity to
select their providers
, as well as sign contracts with several suppliers in order to secure their demand for gas.
Such customers should be protected against non-competition clauses that are designed to eliminate competition or alternative offers.
(Directive 2009/73 point 17 Preamble)
(…) Member States shall ensure that the eligible customer is in fact able
Slide31
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the
system
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that connects31
Change of Seller
Stages in the Change of Seller Process:
The Customer concludes a sale agreement with a new seller;
the Customer gives notice of termination of the sale agreement to the current seller;
The new seller informs the current seller and the TSO or DSO of the date when he will start selling the gaseous fuels;
New seller concludes transmission and distribution contracts;
Termination of transmission and distribution contract with current seller;
The TSO or DSO will collect the readings from the metering system in order to perform settlements with the current seller;
The TSO or the DSO shall immediately convey the metering data to the current and the new seller.Slide32
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the
system
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that connects32
Change of Seller
The customer that is connected to the network is the disposer of the capacity at that point. "The capacity of the point follows the customer.”
This principle was expressed in point 12 of the TNC and point 16 of the DNC.
The conclusion of transmission contract or the distribution contract with the new seller/customer immediately renders the contract with the current Shipper ineffective at that point.
A change in seller only concerns exit points both in the system of the TSO and the DSO.
The introduction of an entry point into the distribution system – with an undefined location (group MFPWY
DSO
) will facilitate the change in seller process and will get rid of the current problems connected with the determination of the PWE to the distribution system.
The possibility of performing a partial change of Seller
DSO
1
DSO
2
TSOSlide33
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the
system
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that connects33
Change of Seller
Each seller has the right to purchase gaseous fuels from a selected seller (Art. 4j EL; § 14 System Regulation).
Schedules for the Termination of Contracts
Household customers – the last day of the month following the month in which the declaration of that customer was delivered to the energy company (re. contracts concluded after 11.03.2010);
Final customers – the schedule specified in the contract.
Pursuant to the Decision of the President of the OCCP
No. DOK 1/2012 of 13 April 2012, the procedure for changing the seller should include all the customers with which the trading company has signed complex contractsSlide34
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the
system
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that connects34
Change in Seller - Costs
Giving notice of termination to the current seller should take place at no additional
costs and compensation other than that resulting from the wording of the contract
– Art. 4j item 3 EL;
The Customer shall be liable only for such costs and compensation as result from the wording of the contract (e.g. contractual penalties, but they cannot directly incur any costs connected with, e.g. taking the meter readings);
This provision does not apply to the contracts concluded before 11.03.2010 (Art. 6 amendment of 8.01.2010).Slide35
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the
system
,
that connectsContracted Capacity Allocation (CCA)for One Day ContractsSlide36
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the
system
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36
CCA for One Day Contracts
Conclusion of transmission contract.
Obtaining the CA for the given point in which the one day services will be performed.
Submission of security.
Contracted Capacity Allocation (CCA) shall take place through the approval of nominations.
One day services are provided on the following principles:
Firm and
Interruptible.
Interruptible services are provided on gas level 4.Slide37
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the
system
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that connects37
CCA for One Day Contracts
Nomination Shipper
1
Contracted capacity Shipper
1
Technical capacity
Nomination Shipper
2
Interruptible capacity awardedSlide38
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38
the
system
,
that connects38
CCA for One Day Contracts
Nomination Shipper
1
Contracted capacity Shipper
1
Technical capacity
Nomination Shipper
2
Interruptible capacity awarded
Firm capacity awardedSlide39
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the
system
,
that connects39
CCA for One Day Contracts
Nomination Shipper
1
Contracted capacity Shipper
1
Technical capacity
Additional firm capacity awarded
Nomination is not rejected if the Shipper
1
has daily CA at that point. In this situation, firm capacity is awarded for 1 day.
Re-nomination during the day is possibleSlide40
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the
system
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that connects40
CCA for One Day Contracts
Nomination Shipper
1
Contracted capacity Shipper
1
Technical capacity
Nomination Shipper
2
Nomination Shipper
3
Proportional reduction in relation to submitted nominations while day
ahead allocating capacitySlide41
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the
system
, that connects
CCA for One Day Contracts
Nomination Shipper
1
Contracted capacity Shipper
1
Technical capacity
Nomination Shipper
2
Nomination Shipper
3
41
Firm
InterruptibleSlide42
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42
the
system
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that connects42
CCA for One Day Contracts
Re-nomination
Nomination Shipper
1
Contracted capacity Shipper
1
Technical capacity
Nomination Shipper
2
Nomination Shipper
3
Nomination Shipper
4
With re-nomination of day
ahead services, only those CCA change proportionally to the available capacity for which the re-nomination was submitted.Slide43
the
system
,
that connectsThank you for your attention
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