1 September 2017 GAS MARKET ENTRY REPORT: THE NETHERLANDS

Transcription

1 1 September 2017 GAS MARKET ENTRY REPORT: THE NETHERLANDS 1

2 Table of Contents GAS WHOLESALE TRADING IN THE NETHERLANDS COUNTRY OVERVIEW TABLE... 4 Legal framework... 6 Structure of the market and services... 7 Access to network services... 8 Licensing... 8 Communication requirements:... 9 Creditworthiness requirements: Capacity booking (primary and secondary markets) Additional services Access to hub services Fees Operational framework Shipper Trader registration: process overview

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4 GAS WHOLESALE TRADING IN THE NETHERLANDS COUNTRY OVERVIEW TABLE GENERAL ASPECTS OF GAS TRADE LICENSING PARTICIPATING IN THE GAS MARKET/ SWISS ENTITY ISSUES BALANCING CAPACITY VTP The Dutch TSO, Gasunie Transport Services (GTS) operates a regulated and decoupled entry-exit tariff system. There is only one market area and balancing zone. For trading or transporting gas in the Dutch national grid, an entity needs to become a customer of GTS. In order to do this, different licenses are required for different sorts of activities. - C Licence: This licence is required if the entity wishes to only trade gas on the Title Transfer Facility (TTF). A licensee under this licence is called a trader. - A Licence: This licence is required if the entity wishes to transport physical gas in the Dutch national grid. The licensee under this licence is called Shipper, but is also entitled to trade on the TTF. - B Licence: If the entity wishes to supply to regional network companies, it is also called a Shipper, but requires a B Licence. - L Licence: If the entity has a connection to the national transport network and wants to book their capacity directly with GTS, it requires an L Licence. The national TSO requires all users of the entry-exit system to be in possession of a shipper's licence. After they have entered into a contract for transmission capacity, the licence allows network users to transport gas. All licensed shippers and traders are automatically also balancing parties. Thus, any network user implicitly takes part in the balancing process as well. GTS applies an entryexit system, where Shippers can book capacity at entry and exit points via the PRISMA platform. The Title Transfer Facility (TTF) is the virtual trading point within the Dutch network. There are different gas exchanges active on TTF, including exchanges offering spot gas trading and exchanges for derivatives. If gas is traded on a gas exchange, the gas exchange operator will carry out the TTF nomination on behalf of the Shipper. For trading on the gas exchange, a TTF subscription with GTS is required. For this purpose, a form has to be filled out by the interested entity and filed with GTS. The subscription can also be terminated by filling out 4

5 For obtaining an A Licence, several conditions have to be met: - Creditworthiness: financial security requirements according to the National Network Code Gas-TSO - Requirements for electronic communication and a positive communication check has to be performed - Prudence: The entity has to show that it has the expertise and technical, administrative and organisational facilities requires to transport gas in the national grid. a form and filing it with GTS. The applicable fee consists of a fixed monthly fee and a variable fee depending on the traded volumes. For obtaining a B licence, further conditions apply: - a creditworthiness of EUR 50,000 is reserved for OV exit contracts - the entity has to have an EAN code - and the entity has to participate in electronic communication with respect to allocations. 5

6 Legal framework Primary Legislation 1 Gas Act (1998 and following amendments) 2 : the law defines the general rules on natural gas companies operating in the market Mining Act (2003) 3 : the law concerns the exploration, exploitation of minerals and underground storage Heat Act (2014): the law concerns the rules and procedures applicable to heat customers and their suppliers Secondary Legislation Licences A, B and C: required to operate as a shipper and trader on the Gasunie Transport System National Network Code Gas: the regulation who sets out the functioning of the gas infrastructure 4 1 Official legal texts please find via:

7 Structure of the market and services The transmission networks operated by Gas Transport Services (GTS) consist of pipelines and facilities. The networks are divided in a high-pressure grid (HTL) and an intermediate pressure grid (RTL). The HTL is split into in a network transporting Groningen gas (G-gas) and a network transporting High Calorific gas (H-gas). A schematic representation of the HTL network is shown on the right (The RTL is mainly supplied from the G-gas HTL via metering and pressure control facilities (M&R stations). (See GTS Website) The two HTL networks are connected via blending stations where different combinations of H-gas and nitrogen are blended and injected into the G-gas network. The HTL contains many compressor stations at which the pressure of the gas is increased to facilitate further transport. The gradual depletion of the Groningen gas field, which produces low calorific value natural gas (G-gas), has induced the need to monitor the future supply and demand of G- and L- gas (enriched G-gas) on a regular basis. [ ] As the amount of available G-gas declines, either the customer equipment and distribution networks must be converted to H-gas, or the H-gas must be blended with additional nitrogen to make it resemble the G- gas/l-gas characteristics 5. The following services are offered by GTS: From and/or to border points with other neighbouring networks To one or more end-users who are directly connected to our grid. There are more than 350 end-users that are directly connected to the national grid From a feed-in point/production point From or to one of the gas storage facilities that are directly connected to our grid From or to the Title Transfer Facility (this requires a TTF subscription) To a gas transfer point with a local distribution network 5 d00e419cc092?rand=677 7

8 Access to network services Licensing Access to natural gas transportation services in the Netherlands can be obtained through the subscription of a series of licenses established by the gas transport system operator Gasunie Transport Services (GTS). License A, B and C need to be obtained to become a shipper. The application for these licenses can be obtained via an application form for licensing provided by GTS 6. License A allows for the delivery of natural gas at the hub (TTF) as well as for the transportation of natural gas following the signature of a dedicated contract for transport capacity with GTS. License B allows for the transportation of natural gas to a transfer point with a local gas network. Parties who possess a license C can only make use of TTF services. Once any of these licenses is granted, the party subscribing these licenses will be included by GTS in its list of shippers. License A License A will be granted once the following conditions are met: 1. Creditworthiness: the applicant s credit rating is adequate for the services it intends to subscribe. The applicant therefore meets the financial security requirements appropriate for its exposure. Specific rules on creditworthiness are set out in Appendix 1 of the National Network Code Gas Electronic communication 8 : the applicant meets the requirements for electronic communication for nominations, entry and exit programs, the portfolio imbalance signal and balancing actions. The applicant must perform a positive communication check with GTS to prove suitable for electronic communication standards 3. Prudence: the applicant has the expertise and exercises due care in all respects, and it also has the technical, administrative and organisational facilities required to transport gas on the national grid Parties subscribing a transportation contract with GTS will be subject to all the requirements of the Network Code including in particular balancing requirements. 6 Relevant application forms and details can be found at the following website: and In Dutch, 8 Additional details on the requirements for electronic communication are available at the following link: 8

9 License B A license B is granted once the following conditions are met by the applicant: A creditworthiness of 50,000 is reserved for OV exit contracts for parties with a B license. The applicant has an EAN code, which can be applied for at EAN- Nederland ( The applicant participates in electronic communication with respect to allocations. A test needs to be performed to be certified for the messaging process, which is facilitated by EDSN. License C The requirements for License A also apply for parties willing to subscribe a License C. Apart from an obligation regarding electronic communication, parties with a C license are not obliged to implement other services. No costs are foreseen for the application for and granting of any of the licenses above. Parties are expected to bear the cost of any measure necessary on their side to fulfil the requirements for obtaining a license. The overall time necessary to obtain a license is also variable depending on the communication between the applicant and GTS, changes need to IT protocols, and existing infrastructure and resources available as well as on the provision of financial securities. Communication requirements: Communication requirements indicated above for different types of licenses foresee that parties must meet electronic communication requirements for nominations, entry and exit programs, the portfolio imbalance signal and balancing actions. In order to meet these requirements, parties will have to access the online Gasport and/or business to business services (B2B). Parties with a License C are not required to establish B2B services 9. B2B services are accessible via the GTS gas portal and they allow for real-time information on allocation, portfolio positions, system balance and balancing actions. Shippers wanting this ability to physically transport gas will require access to such services. Historical information on the items above is also provided. Parties with a direct connection to the GTS grid will also receive real-time information on the flow, quality and composition of the gas at the points where they have contracted capacity. Offline allocations can only be retrieved for the end user points where the gas is delivered by the shipper. 9 Additional information on the details of the communication procedures is available at the following link: 9

10 Access to the GTS portal is granted subject to the issuance of a certificate that allows for encryption of communications as well as to ensure the identity of the owner, and that is provided by GTS 10. All electronic communication is based on the Edigas format. The European Network Code on Interoperability and Data Exchange entered into force on May This network code requires the use of the AS4 protocol for document based information exchange between shippers and European TSOs. Based on a decision of the national regulator ACM, the Dutch TSO GTS is allowed to offer the protocol AS2 alongside with AS4 protocol based communication exchange until 3 May GTS offers the use of the AS4 protocol via the Internet using HTTPS, for communication regarding the Edig@s-XML messages: Nomination (NOMINT) Confirmation (NOMRES) Program Document (PRODOC) Program Confirmation (PROCON) Balancing Document (BALDOC) Balancing Confirmation (BALCON) Clearing Confirmation (CLRCON). As a consequence, GTS will not support the use of the AS2 protocol after 3 May 2018, meaning it will not be possible to send nominations via AS2 anymore. The details of the mandatory communication method after 3 May 2018 are: the communication is based on AS4 over Internet using HTTPS the AS4 (Applicability Standard 4) protocol supports document-based data exchange documents are encoded in an XML format standardised by EASEE-gas as Edig@s- XML the AS4 exchange is standardised in the ENTSOG usage profile GTS also requires the use of TLS using TLS1.2 in HTTPS Creditworthiness requirements: Creditworthiness assessments are carried out by GTS in order to ensure that it is adequate for the services that the applicant intends to subscribe. Specific requirements for creditworthiness are set in the Network Code (Appendix 1). Parties exposure is calculated according to the following: Reserve for TTF, OV-exit or future transmission bookings; Exposure through entering into contracts for services; 10 Additional information on the details of the communication procedures is available at the following link: 10

11 Initial imbalance exposure 11 : depends on the maximum volume of gas to be transported at the start of the license. The actual imbalance exposure is checked daily, and the initial imbalance exposure will be replaced by the actual exposure The following financial securities are accepted by GTS: parent company guarantee, security deposit and bank guarantee. These must be valid for at least 2 months after the end date of the longest transport contract. The following steps are taken in order to assess a party s creditworthiness: 1. GTS credit limit analysis: the applicant will provide the 3 most recent, audited annual reports. GTS performs the credit analysis in accordance with the rules in the Transmission Code Gas-TSO and will notify the applicant of the outcome 2. Determining the applicant s exposure: this exposure is determined by taking the sum of the following elements: TTF reserves: 50,000 if the applicant intends to trade on the TTF. LDC exit reserves: 50,000 reserve if the applicant intends to be active on an LDC exit point (distribution network). Exposure resulting from the applicant s transport bookings: the highest monthly (intended) transport booking invoice and multiplied by 3. For a transport booking for one or two months, the highest monthly transport booking invoice can be respectively multiplied by 1 and 2. Initial Imbalance exposure: estimate the maximum volume of gas that the applicant can transport in a three-day period. This is the gas that could flow through exit points and/or the TTF. This volume is multiplied by the year average neutral gas price of the previous calendar year. The year average neutral gas price for 2016 was 0, /kwh. Reserves for future transport bookings (e.g. for Open Seasons). 3. Determining what credit limit and unused credit is needed by the applicant: the credit limit must at least cover the applicant s exposure, but GTS recommends to maintain an unused credit surplus of at least 15% of the credit limit. Applicants can increase their credit limit by providing additional securities. 4. Providing additional financial securities: in case the applicant s credit limit is not high enough, it will have to provide additional financial securities. The applicant can use a parent company guarantee, a security deposit and/or a bank guarantee. The financial security must be valid for at least 2 months after the end date of the longest transport booking. The table below provides an overview of the shipper s creditworthiness exposure (source: GTS): 11 The year average neutral gas price of the previous calendar year is used to determine the initial imbalance exposure when requesting a license. The year average neutral gas price for 2015 was /kwh. 11

12 Periodic credit analyses of the license holder will be performed upon the party s request. Unused or expected to be unused securities can be returned by GTS upon request from the shipper and when no longer needed. The amount of financial security to be provided can be changed but the credit limit must at least cover the party s exposure under its contracts with GTS. Capacity booking (primary and secondary markets) Once a license is obtained from GTS, parties will be included in the list of licensed programme-responsible parties i.e. shippers. Shippers can subsequently book capacity for transportation services and other services in the GTS system. GTS applies an entryexit system where gas flows into the network at entry points and leaves the network at exit points. Entry capacity gives a shipper the right to inject a specific volume of gas per hour into the national grid at an entry point. Exit capacity gives the right to withdraw a specific volume of gas per hour from the national grid at an exit point. GTS accepts gas that is offered at entry points, transports it and makes it available at exit points. A shipper can freely combine entry and exit points. A collection of entry and exit contracts of one and the same shipper are combined into one portfolio and a shipper may also have several portfolios. A shipper does not need to book entry and exit capacity simultaneously. In relation to the use of contracted capacity, the transport network must be in balance in order to allow for the safe and efficient transport of gas. Each shipper responsible for the volume of gas extracted from or injected into the system. If an imbalance does arise, GTS will establish whether the portfolio has contributed towards causing the imbalance or if it has helped to reduce the imbalance for each portfolio. GTS offers available capacity via the PRISMA platform as other European transmission system operators (TSO) in line with the requirements set by European regulation. Capacity can, however, also be booked directly with GTS. GTS offers standard products including yearly, quarterly, monthly, daily and within-day products. 12

13 PRISMA auction calendar Like other TSOs, GTS also offered bundled capacity products at border points. Remaining capacity that cannot be bundled is offered as unbundled capacity. Unbundled capacity is offered in a separate auction that runs in parallel with the auction for the bundled capacity. Within-day capacity is offered every day (including weekends and business holidays) and consists of the remaining firm forward and firm backhaul capacity from the day-ahead auctions on the PRISMA platform. Additional trading of capacity can be carried out on the secondary market on the PRISMA platform in the form of either assignments or sublets. Assignments of capacity rights imply a full transfer of such rights that become part of the portfolio of the party which will receive the capacity. In case of a sublet, the original party holding the capacity rights remains the holder of such rights while the right of the contracted capacity use is given to the buying party. GTS is informed of such transfers via the PRISMA secondary capacity platform. A fixed fee for the transferring of capacity rights is charged by GTS (appendix 1C of Transmission Service Conditions) 13. PRISMA secondary capacity platform can support both types of transfer according to different procedures: OTC (over-the-counter): This is a bilateral agreement between two shippers which is ultimately authenticated via PRISMA. 12 The updates of ENTSOG auctioning calendar can be downloaded at: 13 TSCs are available at the following link: 13

14 Call for Order (buy or sell): The initiating shipper creates a trade proposal to buy or sell capacity and other shippers can place an offer to buy or sell capacity from which the initiating shipper can choose. FcFs (buy or sell): The initiating shipper creates a trade proposal to buy or sell capacity and other shippers can accept that trade proposal Additional services GTS provides a number of additional services which include diversion, wheeling, shift of capacity, overshoot agreement, surrender of capacity and shorthaul (sources for graphs below: GTS). Diversion: the transport capacity contracted at an entry or exit point can be transferred to another entry or exit point at the same location without placing any additional demand on transport capacity and without imposing restrictions on the quantity of capacity to be offered at an auction (see graph on the right). In principle, GTS will only support diversion of firm capacity. Diversion is only possible for combinations specified by GTS in advance. Diversion services cannot be booked via the PRISMA platform but need to be requested directly from GTS. A fixed tariff applies to diversion services. Wheeling means that gas can be transported from an entry to an exit point close to each other if the points have the same gas quality at a tariff that is lower than the sum of the regular transport tariffs for the separate points (see graph on the right). This is possible because no physical demand is placed on the transport network. In addition, wheeling services should have no consequences for the capacity quantity to be offered at auction. It is crucial for shippers to know that it is not possible to transfer gas on the TTF without a wheeling contract. A yearly tariff is set for wheeling and the normal system of monthly and daily factors applies to contracts of less than one year. The tariff for interruptible wheeling is expressed as a percentage of the fixed wheeling tariff and applies if no more fixed capacity is available at one or both points of the wheeling combination. Shift of capacity services imply that a shipper can request a customized shift of capacity implying that the capacity already booked at an exit point can be transferred to another exit point for a certain period of time. Standard tariffs do not apply to this service as it is not a customized service. Each request for shift of capacity services is looked at individually and evaluated by GTS and a calculation of costs is provided. 14

15 Overshoot agreements can be put in place where two or more shippers are active at an industrial exit point and one or more shippers exceed the individual contracted capacity, whilst the offtake is less than the sum of the booked capacities on this point. An agreement can be made with the connected party at this point by which the connected party will bear the risk of the overshoot. Surrender of capacity services allows shippers to surrender their capacity to GTS. This surrendered capacity will be sold only after GTS has sold its available capacity. This mechanism can lead to the offering by GTS of capacity unbundled at interconnection points with other TSOs. If a shipper surrenders bundled capacity where GTS still have capacity available but the neighbouring network operator (NNO) does not, then GTS will sell capacity on its side while the NNO will sell the surrendered capacity. This results in (partial) unbundling of a bundled capacity contract. Shorthaul services are custom services offered by GTS to feed gas at a specific entry point and withdraw gas from a specific exit point on the GTS network with a total distance of maximum 50 km. The shorthaul service is registered in a separate portfolio and the hourly volume of gas fed in needs to be the same as the volume withdrawn. Shorthaul has a minimum contract period of three years and a maximum contract period of 7 years. Access to hub services The Title Transfer Facility (TTF) is a virtual market place which offers the possibility for shippers to transfer gas that is already in the GTS system to another party in the GTS system. Parties only willing to trade on the TTF will require a license C and a TTF registration. Parties wanting to trade on the TTF as well as transport natural gas at points within the GTS system will need a license A and a TTF registration. They can consequently book capacity in the GTS system (see above). Gas trades are registered in the form of nominations of trades which are electronic notifications stating the volume of transferred gas, the period and the quality of the gas as well as the buying and selling parties. Although parties can trade gas amongst themselves, a notification of such trade to GTS is required in order for the system operator to be aware of the ownership of gas in their system at all times. A subscription to TTF services is required before parties are able to trade gas 14. An overview of the process for trading gas at the TTF is shown below (source GTS): 14 Forms required to register and deregister from the TTF are available at the following link: 15

16 In addition, gas exchange operators are also active on the market allowing a shipper to trade natural gas at the TTF without the other party in the exchange being known. The operator is responsible for bringing together the volumes of gas that is offered and bought as well as for carrying out nominations for gas bought or sold on behalf of shippers. A TTF subscription with GTS is required to trade on the gas exchange. A number of companies have been appointed as gas exchange operators for the Dutch gas market by the Ministry of Economic Affairs, namely ICE ENDEX and ECC B.V. ICE ENDEX operates as a physical, short-term exchange with delivery on the TTF. Futures contracts are traded on ICE ENDEX, also with delivery on the TTF. Fees Fees for transmission Tariffs for services in the GTS system are calculated based on the annual tariff. This applies to contracts with a flat capacity profile for a period of 12 months. Long-term contracts can be concluded for multiple one year contracts. Tariffs applicable for long and short-term products (see above) are approved by the Dutch regulator and are part of the TSC (general conditions for gas transmission) published by GTS (appendix 1a and 1b). The tables below provide an overview of the tariffs applicable for entry and exit points (source: GTS). For more information, please visit (where, besides the general Terms and Conditions, it is possible to find listed all the relevant tariffs for the current and previous years). 16

17 Entry Border Points Network point description Wobbe label Entry tariff 2017 in /kwh/hour/year Balancing tariff 2017 in /kwh/hour/year QC tariff 2017 in /kwh/hour/year Entry tariff 2017 including balancing and QC in /kwh/hour/year HILVARENBEEK (FLUXYS) L 0,616 0,038 0,293 0,947 + HILVARENBEEK (FLUXYS) L 0,616 0,038 0,293 0,947 + ZEVENAAR L 0,854 0,038 0,293 1,185 + WINTERSWIJK (OGE) L 0,854 0,038 0,293 1,185 + OUDE STATENZIJL (GTG NORD-G) G 0,667 0,038 0,293 0,998 + TEGELEN (OGE) G+ 0,738 0,038 0,293 1,069 + BOCHOLTZ TENP (OGE - FLX TENP) H 0,616 0,038 0,293 0,947 + VLIEGHUIS (RWE) H 1,104 0,038 0,293 1,435 + S-GRAVENVOEREN (FLUXYS) H 0,616 0,038 0,293 0,947 + S-GRAVENVOEREN (FLUXYS) H 0,616 0,038 0,293 0,947 + OUDE STATENZIJL (GUD-G)[OBEBG] G 0,667 0,038 0,293 0,998 + OUDE STATENZIJL (OGE) H 0,502 0,038 0,293 0,833 OUDE STATENZIJL (GUD-H)[OBEBH] H 0,502 0,038 0,293 0,833 OUDE STATENZIJL (GASCADE-H) H 0,502 0,038 0,293 0,833 ZELZATE (FLUXYS) H 1,072 0,038 0,293 1,403 EMDEN EPT (GASSCO) H 0,502 0,038 0,293 0,833 ZANDVLIET (FLUXYS-H) H 0,914 0,038 0,293 1,245 + JULIANADORP (BBL) H 0,899 0,038 0,293 1,230 + BOCHOLTZ VETSCHAU (THYSSENGAS) H 0,616 0,038 0,293 0,947 + Based on backhaul 17

18 Border Exit Points Network point description Wobbe label Exit tariff 2017 in /kwh/hour/year Balancing tariff 2017 in /kwh/hour/year QC tariff 2017 in /kwh/hour/year Exit tariff 2017including balancing and QC in /kwh/hour/year HILVARENBEEK (FLUXYS) L 1,263 0,038 0,293 1,594 HILVARENBEEK (FLUXYS) L 1,263 0,038 0,293 1,594 ZEVENAAR L 0,916 0,038 0,293 1,247 WINTERSWIJK (OGE) L 0,916 0,038 0,293 1,247 OUDE STATENZIJL (GTG NORD-G) G 0,425 0,038 0,293 0,756 Based on backhaul TEGELEN (OGE) G+ 1,255 0,038 0,293 1,586 BOCHOLTZ TENP (OGE - FLX TENP) H 1,070 0,038 0,293 1,401 DINXPERLO (BEW) G+ 0,782 0,038 0,293 1,113 HAANRADE (THYSSENGAS) G+ 1,396 0,038 0,293 1,727 VLIEGHUIS (RWE) H 0,229 0,038 0,293 0,560 S-GRAVENVOEREN (FLUXYS) H 1,070 0,038 0,293 1,401 S-GRAVENVOEREN (FLUXYS) H 1,070 0,038 0,293 1,401 OUDE STATENZIJL (GUD-G)[OBEBG] G 0,425 0,038 0,293 0,756 OUDE STATENZIJL (OGE) H 0,441 0,038 0,293 0,772 OUDE STATENZIJL (GUD-H)[OBEBH] H ,038 0,293 0,772 OUDE STATENZIJL (GASCADE-H) H 0,441 0,038 0,293 0,772 ZELZATE (FLUXYS) H 1,286 0,038 0,293 1,617 EMDEN EPT (GASSCO) H 0,522 0,038 0,293 0,853 + ZANDVLIET (FLUXYS-H) H 1,441 0,038 0,293 1,772 JULIANADORP (BBL) H 0,634 0,038 0,293 0,965 ZANDVLIET (WINGAS-H) H 1,441 0,038 0,293 1,772 BOCHOLTZ VETSCHAU (THYSSENGAS) H 1,070 0,038 0,293 1,401 18

19 The costs for a yearly FIRM capacity booking can be calculated as: cost ( /year) = booked yearly capacity (kwh/h) * yearly tariff ( /kwh/h/year) Info box: capacity booking <1 year Capacity booked for less than 12 months will have a tariff applicable with specific monthly factors (percentage of the annual tariff which may differ from month to month). The table below provides an overview of the monthly factors applicable to the annual tariff If a shipper books capacity for a period of less than 12 months, the tariff for the whole period forward transport capacity is booked for, is calculated as follows: The sum of the monthly factors for the individual months (which can never exceed 100%) is multiplied by the annual tariff, or, if this is lower, (81.25% plus 3% of the number of winter months plus 1.5% of the number of spring and autumn months together plus 0.75% of the number of summer months) multiplied by the annual tariff. For the standard capacity products (quarter, month and day) offered on PRISMA, the correct monthly and daily factors are included in the tariffs. (source GTS 15 )

20 Info box: daily tariff calculation Daily capacity products tariffs are calculated according to the following: Daily factor is always 1/30 Monthly factor: * In case of forward flow capacity, the monthly factor depends on the month: - 0,3 for December, January, February (winter months) - 0,15 for March, April, October, November (shoulder months) - 0,075 for May, June, July, August, September (summer months) * In case of backhaul capacity: - Monthly factor is 1/12 for all months The costs for a daily firm capacity booking can be calculated as: cost ( /day) = booked daily capacity (kwh/h) * daily tariff ( /kwh/h/day). If the booking is interruptible, then a discount of 30% will be applied: cost ( /day) = 0,7 * booked daily capacity (kwh/h) * daily tariff ( /kwh/h/day) (source GTS 16 ) Info box: monthly tariff calculation Monthly capacity product tariffs are calculated according to the following 17 : monthly tariff = monthly factor * yearly tariff Monthly factor: in case of forward flow capacity, the monthly factor depends on the month: - 0,3 for December, January, February (winter months) - 0,15 for March, April, October, November (shoulder months) - 0,075 for May, June, July, August, September (summer months) * in case of backhaul capacity: - Monthly factor is 1/12 for all months The costs for a monthly firm (no interruptible) capacity booking can be calculated as: cost ( /month) = booked daily capacity (kwh/h) * monthly tariff ( /kwh/h/month). 16 See above. 17 See above. 20

21 Info box: quarterly tariff calculation Quarterly capacity product tariffs are calculated according to the following: quarterly tariff = quarterly factor * yearly tariff Quarterly factor: * in case of forward flow capacity, the quarterly factor depends on the quarter of a gas year (Oct Oct): - 0,6 for Q1 (October, November, December) - 0,75 for Q2 (January, February, March) - 0,3 for Q3 (April, May, June) - 0,225 for Q4 (July, August, September) The costs for a quarterly firm capacity booking can be calculated as: cost ( /quarter) = booked quarterly capacity (kwh/h) * quarterly tariff ( /kwh/h/quarter) No quarterly product is offered as an interruptible or backhaul product. In case shippers use capacity in excess of their bookings (above a margin of 2%), a surcharge is applicable (only to the highest capacity overshoot of the gas day). The amount of the surcharge is calculated based on the difference in value between the booked and the actual capacity used multiplied by the monthly factor multiplied by the annual network point tariff (transport tariff + balancing tariff + quality conversion tariff valid at the network point concerned). (source: GTS 18 ) Moreover, the following fees are applied to the other services mentioned above (from 1 st July 2017): Diversion fee is Transfer of capacity rights or usage rights fee is Wheeling tariff is 0.111per kwh per hour per year See above bc1d015b259?rand=41 21

22 Operational framework The Netherlands has also implemented the requirements of REMIT (Regulation (EC) N.1227/2011). The Dutch regulator ACM has, however, opted not to create a national platform for the registration of market participants for REMIT purposes leaving the collection of information on market participants to ACER and the related European platform. Relevant platforms The following platforms have been identified above are relevant for parties willing to operate on the Dutch market: PRISMA: and GTS: (portal to access all the information for shippers The Dutch Title Transfer Facilitator: REMIT reporting platform: Shipper Trader registration: process overview 22