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New tariffs system in France

New tariffs system in France. GTE 23 rd October 2003. Jacques Laurelut. The French network. Gaz de France CFM GSO. A multi-zonal Entry-Exit system. System in place in 2003 and 2004 Eight Entry-Exit zones: one for GSO two for CFM five for GDF (one for L-Gas, one for H-gas)

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New tariffs system in France

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  1. New tariffs system in France GTE 23rd October 2003 Jacques Laurelut

  2. The French network • Gaz de France • CFM • GSO GTE

  3. A multi-zonal Entry-Exit system • System in place in 2003 and 2004 • Eight Entry-Exit zones: • one for GSO • two for CFM • five for GDF (one for L-Gas, one for H-gas) • Average area covered by each zone: 70 000 km2 (Belgium: 30 000 km2 ; Netherlands: 35 000 km2 ; Ireland: 70 000 km2) GTE

  4. How does it work ? Taisnières Dunkerque Interconnection point Underground storage Regasification plant Obergailbach GDF Montoir Oltingue CFM GSO Fos GTE

  5. Advantages of this system (1/2) • No inter-TSO payment although there are 3 TSO’s • Favouring competition: • no capacity constraint within each zone • each GDF’s zone has a storage capacity • daily balancing in each zone • Transparency: physical capacity constraints are reflected by the inter-zone links • appropriate information is given to the network users by the TSOs regarding available capacities for the supply of their customers • appropriate information is given by the network users to the TSOs (capacity booking reflects the actual need for capacity) • minimisation of the risk of supply shortages for customers GTE

  6. Advantages of this system (2/2) • Cost reflectivity: minimisation of cross-subsidiation • the cost of the inter-zone links is borne by the users of the corresponding capacity only • the price for the inter-zone links is very low for backhaul capacity • consistency with existing transit contracts • Consistency with physical balancing requirements: • the commercial balancing obligation on each zone for the shippers is consistent with the physical balancing requirements of the TSO GTE

  7. New Transmission tariff (from January 1st 2004) • Regulator proposal dated July 24th, subject to French government approval • Same tariff structure • Zonal Entry / Exit • Five balancing zones for Gaz de France : NORD H, EST, OUEST, SUD, NORD B • But a lot of changes have been introduced • Inter-zone links prices have been reduced by 20% • short-duration contracts (1 month) • long-duration contracts (more than a year) have been introduced • title transfer facility is proposed within each balancing zone (from November 2003) GTE

  8. Price Comparison (1000 MWh/d - 300 GWh/yr - NTAR=2) GTE

  9. Transparency : publication on the web site • Detailed TPA conditions • Entry, exit and link points • Capacities Total firm capacity Subscribed firm capacity Subscribed interruptible capacity Available firm capacity • Flows Daily flow • Maintenance schedule • Maintenance programme and impact on available capacities GTE

  10. Third Party Access GTE

  11. Multi-zonal Entry-Exit tariff system • A model for Europe ? • Process of opening the French gas market • On the way of success … GTE

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