Brussels, 27 th February 2012

1. 8th GRI Coordination Group South Gas Regional Initiative Brussels, 27th February 2012

2. GRI CoordinationGroup Meeting • UPDATED South GRI Work Plan 2011-2014 • The Work Plan 2011-2014 is being updated . • The modified points and additional issues are shown in red. • Preliminary Findings of the supervision of compliance with Transparency provisions in Regulation 715/2009/CE

3. Work Plan for 2011-2014 1. CAMs and CMPs affecting interconnection capacities (I) • Annual short term Open Subscription for the 20% of present existing capacities between Spain and France. • CAM harmonisation (pilot testing FG-NC on CAM) beginning with the Spanish and Portuguese interconnections. Auction procedure is being developed by TSOs and NRAs to be launched in June 2012. First draft was presented to Stakeholders on the 7th February 2012. (Jun 2012). • TSOs Common Allocation Platform (Dec 2014).

4. Work Plan for 2011-2014 1. CAMs and CMPs affecting interconnection capacities (II) • CMPs at interconnections: Regulators and TSOs have analysed CMPs in force. The region’s Work Plan envisages the application of coordinated and harmonized CMPs at borders following “comitology” CMP draft . Could serve as a pilot testing of the CMP to provide feed-back to the European Commission from the South Region. • The region has already defined a first draft of a common CMP that could be implemented at the Spanish-French border (Dec 2012). • Extension of the coordinated CMP mechanism to the Spanish-Portuguese cross-border capacity (Jan 2013).

5. Work Plan for 2011-2014 2. Ten Year Network Development Plan and Projects of Common Interest • Keep evaluating the need of infrastructure, following market demand, using market mechanisms to decide if future investments are needed. • SGRI to provide feed-back to ENTSOG on the contents and methodology to design the regional investment plan. • Creation of a working group in the region in order to test the process for PCI identification, proposed in the draft Regulation through a pilot exercise (Nov 2013).

6. Work Plan for 2011-2014 3. Security of supply • Providing competent and relevant authorities on SoS with a forum to update progress on the Regulation 994/2010 implementation. • Contributing to the elaboration of the preventive and action plans by promoting stakeholders participation in public consultations.

7. Work Plan for 2011-2014 4. Balancing • Contributing to the FG and NC, by raising the regional experience and lessons learned. • Investigation of the use of the gas markets in the region for balancing purposes (Jun 2013). • Analyse the current configuration of balancing zones to help developing virtual hubs (Dec 2013). • Possible launching of a pilot project for a common balancing platform integrating the provision of balancing systems in the three countries in the region (Dec 2014).

8. Work Plan for 2011-2014 5. Tariffs • Public consultation of Analysis of cross border transmission gas tariffs between Portugal and Spain has recently finished. • Further studies to evaluate the current tariff structures and propose improvements (Dec 2012).

9. Work Plan for 2011-2014 6. Interoperatibility • To contribute with regional experience to the development of the FG and NC. • To develop specific proposals for the harmonisation of aspects (gas day, communication protocols between TSOs, quality standards, programming and nomination schedules...). (Dec 2014)

10. Work Plan for 2011-2014 7. Transparency • Supervision of compliance with the implementation of the new provisions on transparency in the Regulation 715/2009/CE (Jun 2012). • Transparency Project Plan has been developed in the South region following NGRI example. Preliminary findings were presented to stakeholders in the 15th SG Meeting, last 7th February.

11. Work Plan for 2011-2014 8. Developing hub-to-hub • Hub development (Dec 2013). • Hub-to-hub gas trading in the region (Dec 2014).

12. Work Plan for 2011-2014 9. Cross regional projects • Early implementation of CAM following FG and Draft NC. • Monitoring the implementation of Regulation transparency requirements. Collaboration with other regions in the development of a work program to promote transparency compliance. • Implementation of a capacity platform considering other regions’ projects, analysing possible direct adherence to neighbouring capacity platforms in operation. • Promotion of cross regional cooperation in SoS. • Monitoring of other regions’ work to promote hub developments.

13. AGENDAOF THE SGRI WORK PLAN FOR 2011-2014 (I)

14. AGENDAOF THE SGRI WORK PLAN FOR 2011-2014 (II)

15. SGRI TRANSPARENCY PROJECT PLAN

16. Transparency Project Plan • 1) Survey Procedure • Following steps taken by the North region, but extending the approach to LSOs and SSOs. • Questionnaires were sent on December 2nd 2011 to the following agents: • Deadline to answer: January 15th, 2012. • Mail reminder was sent on January16th. • Regulators contact TSOs, LSOs and SSOs to clarify misunderstanding according to preliminary assessment made by NRAs. • Final Questionnaires are planning to be published in February.

17. Transparency Project Plan • 2) TSOs transparency: preliminary assessment • According to questionnaires filled out by the TSOs, the preliminary assessment shows, in general, a high level of compliance with Regulation 715/2009: • Good level of compliance with provisions that require the publication of information on: • Gas system description • Service description and contracting process • Applicable CAM and CMP • Nomination and matching procedures • Balancing rules and imbalance charges • Secondary markets

18. Transparency Project Plan • 2) TSOs transparency: preliminary assessment (cont.) • Some room for improvement on: • More clarity on services’ prices • Flexibility and tolerances levels • Participation in secondary markets • Historical data • Form of publication (English, units, etc.)

19. Transparency Project Plan • 3) TSOs transparency: preliminary conclusions • Some areas of non-compliance are in the process of being implemented. • There are some misunderstandings among TSOs about some transparency requirements (i.e., requirements that are considered “not applicable”, information not directly published by the TSOs, but by third parties, etc.). These misunderstandings are easy to solve, this will improve the level of compliance. • There’s information not published directly by the TSOs but by other market agents. Again, this difficulty is easy to overcome with links. • Compliance with some obligations require the modification of national legislation. This specifically refers to the need to publish data in units that use a combustion temperature of reference of 298,15 K. The change of reference temperature would have a considerable impact on other national processes (i.e., measurement processes, invoicing, etc.), so it must be analysed very carefully. The requirement has been complied with a conversion factor provided.

20. Transparency Project Plan • Summary tables in colours have been developed by NRAs according to the questionnaires received from operators in the South Region.

21. TSOs ’ Transparency Questionnaires

22. TSOs ’ Transparency Questionnaires

23. TSOs ’ Transparency Questionnaires

24. TSOs ’ Transparency Questionnaires

25. TSOs ’ Transparency Questionnaires

26. Transparency Project Plan • 4) LSOs and SSOs transparency: preliminary assessment • According to questionnaires sent by the LSOs and SSOs, the preliminary assessment shows, in general, a high level of compliancewith Regulation 715/2009: • Good level of compliance with provisions that require the publication of information on: • Service description • Contracted and available storage facility capacity • Use and availability of third-party access services • Form of publication

27. Transparency Project Plan • 4) LSOs transparency: preliminary conclusions • Two French LSOs haven´t sent the filled Questionnaires. • There’s some misunderstandings among LSOs about some transparency requirements (i.e., requirements that are considered “not applicable”, information not directly published by the LSOs but by third parties, etc.). These misunderstandings are easily to be solved, this will improve the level of compliance. • There’s information not published directly by the LSOs but by TSO. This difficult is easy to overcome with links to TSO website. • In general, they publish more information than required.

28. LSOs ’ Transparency Questionnaires

29. Transparency Project Plan • 5) SSOs transparency: preliminary conclusions • One Portuguese Questionnaire needs to be completed with links on every transparency requirement. • There’s some misunderstandings among SSOs about some transparency requirements (i.e., requirements that are considered “not applicable”, information not directly published by the SSOs but by third parties, etc.). These misunderstandings are easily to be solved, this will improve the level of compliance. • There’s information not published directly by the SSOs but by TSO. This difficult is easy to overcome with links to TSO website.

30. SSOs ’ Transparency Questionnaires

31. Transparency Project Plan • 6) Next steps • Regulators to keep in contact with operators to clarify misunderstandings and possible improvements affecting transparency obligations. • Public Consultation to be launched in the following days • Operators’ responses to questionnaires will be published on ACER web site. Stakeholders will have full access to these questionnaires and will be able to provide their views. Opinions will provide a valuable assessment of operators’ compliance with the transparency requirements in Regulation 715/2009, helping authorities to ensure that the legislative requirements are appropriately implemented, in particular with: • Quality, consistency, update frequency and availability of the information • Information accessibility • Information accuracy