Fluxys natural gas transport services in Belgium Indicative Conditions & Tariffs

Transcription

1 Fluxys natural gas transport services in Belgium Indicative Conditions & Tariffs Page 1 of 51

2 Contents 1. Introduction Natural gas transport services in Belgium: scope Regulated tariffs Tariffs Code of Conduct 5 2. Conditions & Tariffs Capacity services Main characteristics Enhanced Entry/Exit Basic concepts Transport Capacity: Entry Capacity Services and Tariffs Firm Entry Capacity Conditional Entry Capacity Interruptible Entry Capacity Interruptible Entry Capacity level Interruptible Entry Capacity level Operational Interruptible Entry Capacity Day-ahead Interruptible Entry Capacity Adjustment of the First Committed, First Served rule Support of Secondary Market Transport Capacity: tariffs for Supply Capacity SLP customers and Non-SLP customers: definition Firm non-slp Supply Capacity Firm SLP Supply Capacity Firm Capacity for injection in the storage facility in Loenhout Conditional Supply Capacity Conditional HUB Supply Capacity Switch H/L Supply Capacity Interruptible Supply Capacity Interruptible Supply Capacity for injection in the storage facility in Loenhout Operational Interruptible Supply Capacity for injection in the storage facility in Loenhout NDM Supply Capacity Main base load Supply Transport Capacity Capacity for periods of less than one year: seasonal tariff Capacity for periods of less than 30 days: short-term Capacity tariff Transit-Transport Synergy ARF (Additional Rate Flexibility) Capacity Support of Secondary Market Transport Capacity: Transfer between two BAPs Automatic Reservation System (ARS) Direct line Capacity service 28 Page 2 of 51

3 2.1.7 ZEE Platform Capacity service Additional Flexibility Services Additional CIT - non SLP Additional CIT SLP Additional DIT Monthly settlements Support of Secondary Market Pressure Reducing Services at the Supply Point (Dedicated Pressure Reducing Station DPRS) Odorisation Services Connection and Disconnection Services Capacity Discontinuance based on CREG decisions Quality Conversion Services: Quality Conversion Units Conversion Service Additional Start-up Service Natural gas quality conversion: L-inject Tarification of Transport Services to Aggregated Receiving Stations (ARS) for Public Distribution Tariff Supplements applicable in Tariff Supplements related to Transport Capacity Principles and definitions Calculation of tariff supplements for peak exceedings Calculation of tariff supplements for non-peak exceedings Tariff Supplements related to balancing obligations Hourly Imbalance above HIT upper limit Hourly Imbalance below HIT lower limit Daily Imbalance above DIT upper limit Daily Imbalance below DIT lower limit Cumulated Imbalance above CIT upper limit Cumulated Imbalance lower than CIT lower limit Entry Tolerance Scheduling Fee Supply Tolerance Scheduling Fee Supply Tolerance Scheduling Fee Renomination Supply Tolerance Scheduling Fee Connection agreement tariff supplement Tariff supplement related to the non-confirmation of a Capacity Tariffs 2009: application examples Example Example Tariffs 2009: Synthesis Entry points to the Fluxys Grid Indicative available capacities at the Entry points Contact 51 Page 3 of 51

4 1. Introduction 1.1 Natural gas transport services in Belgium: scope The Fluxys transport services cover a range of services for redelivery of natural gas at a Supply point in Belgium on the Fluxys grid (consumption point or connection with distribution grid) upon delivery of an equivalent quantity of natural gas at one of the Entry points to the grid. In order to become a Grid User, 2 conditions need to be met: 1. Obtaining a valid authorization for furniture from the federal Ministry of Energy ; 2. Accepting conditions by signing the Master Agreement of Transport and Related Services. 1.2 Regulated tariffs The amendments of 16 July 2001 to the Belgian federal Gas Act of 12 April 1965 and the Royal Decree of 8 June 2007 (Tariff Act) provide that the following transport services are to be offered at regulated tariffs: Capacity services Flexibility Services Pressure reduction services Odorisation services Quality conversion services The regulated tariffs are cost-based. For that purpose the costs for Fluxys are divided over the various services that the company offers on the basis of objective criteria. According to the Royal Decree of 8 June 2007, Fluxys has to submit each 4 years its budget and tariff proposal for the 4 coming years to the Regulator, the Commission for Regulation of Electricity and Gas (CREG). 1.3 Tariffs In accordance with the Royal Decree of 8 June 2007, Fluxys submitted its revised budget and Tariff Proposal for to the CREG on 26 November On the 19th of December 2007, the CREG has refused the proposed tariffs and conditions for the years introduced by FLUXYS in its role of combined network operator (natural gas transport and storage operator) The national regulator has decided to impose tariffs in line with the regulated tariffs in application during the year Page 4 of 51

5 Legal proceedings, requesting suspension and cancellation, are instituted by Fluxys against CREG s decision of June 6, 2008, in our view illegally imposing for the second time interim tariffs. Pending the Court s decision, Fluxys invoices will have a provisional nature, based on the interim tariffs imposed by the CREG on December 19, 2007, which are applied to the present contracts. Please note that as a consequence, the invoices and the corresponding payments made under these contracts are to be considered as a provision subject to final account.for all other Services, FLUXYS refers to the PITs and to the regulated tariffs applicable in Fluxys wishes to draw the attention of the Grid Users to the fact that the tariffs imposed by the CREG are temporarily and are not definitively binding for Fluxys. They can be modified, as the case may be retroactively, following a CREG s decision and/or a court decision. All questions related to the present notice and to the Service offer during the imposed tariffs period may be addressed to the attention of Commercial Department (info.transport@fluxys.net). All services are described in detail into the Indicative Transport Programme, approved by CREG on 13 December This Indicative Programme is also available on our website: Code of Conduct The Royal Decree of 4 April 2003 relating to the Code of Conduct includes a number of operational and administrative guidelines for natural gas transport companies and the companies that use their services. On the 11 July 2003 and in line with the Royal Decree Fluxys submitted its proposal to the CREG for approval of the Main conditions for access to the transport infrastructure. The Main conditions version of 13 December 2004 has been approved by CREG on 20 December The Main conditions are available on the Fluxys website: They are also available at simple request to our Commercial Department. Page 5 of 51

6 2. Conditions & Tariffs 2.1 Capacity services Main characteristics Enhanced Entry/Exit The Enhanced Entry/Exit transport model proposed by Fluxys guarantees that the subscribed Firm capacities remain Firm and meanwhile offers the flexibility of an Entry/Exit system: Fluxys guarantees the Firm character of the subscribed Firm Capacities as far as the Grid User nominates according to the contractual route; Moreover, the Grid User has the option to deviate from his contractual route as in an Entry/Exit system. Fluxys offers the Grid User this additional flexibility on a reasonable endeavour basis Basic concepts Entry zone Zeebrugge PSP ZPT IZT LNG HUB Entry zone Zelzate BAP ZBG Zelz 1 Zelz 2 Entry zone Zandvliet H Entry zone Loenhout Transfo Entry zone Antwerp Zandvliet L Poppel BAP L-CAL Dilsen s Gravenvoeren Entry zone GRA Eynatten 1 Eynatten 2 Entry zone EYN Entry zone BLA BAP BLA BAP GRA Quevy Blaregnies H Blaregnies L Bras Pétange Page 6 of 51

7 a) Balancing zone In the Enhanced Entry/Exit -system that Fluxys uses to offer its transport services, the Transport grid consists of four Balancing zones or Balancing Points (BAP) (three points for H-gas and one for L-gas). Each Supply point is connected to a single Balancing zone. Fluxys maximizes the Firm Capacity and Flexibility Services offer with this configuration. b) Entry zone The Entry points are grouped into Entry zones (e.g. the Entry points IZT, ZPT, PSP, HUB, and LNG Terminal are grouped in the Entry zone Zeebrugge). Each Entry point belongs to one Entry zone and each Entry zone is connected to a single Balancing zone. c) Capacity subscription and Nominations The principle of Transport Capacity subscription between an Entry point and a Supply point is represented schematically below: If the Supply point is situated in the same Balancing zone as the Balancing zone to which the Entry zone is connected: Entry point The Transport Capacity between the Entry 1 Entry zone 2 point and the Supply point consists of: 1 Entry Capacity: capacity between the Supply point Entry point and the Balancing zone Zone in which Entry zone (linked to the BAP) Imbalances are accumulated 2 Supply Capacity: capacity between the BAP and the Supply point The Grid User nominates the quantities of energy that he wants to transport at the Entry point and the Supply point. The objective is to achieve a balance on a daily basis within the permitted tolerances between the quantity of energy that is delivered at the Entry point and that redelivered at the Supply point. Page 7 of 51

8 If the Supply point is situated in a Balancing zone other than the Balancing zone to which the Entry zone is connected: Entry point Entry zone Balancing zone A The Transport Capacity between the Entry point and the Supply point consists of: 1 Entry Capacity 2 Transfer Capacity 1 Entry Capacity: capacity between the Entry point and the Entry zone (linked to the Balancing zone A) 3 Supply Capacity Supply point Balancing zone B 2 Transfer Capacity between the Balancing zones (Balancing zone A to B) 3 Supply Capacity: capacity between Balancing zone B and the Supply point The Grid User nominates the quantities of energy that he wants to transport at the Entry point, the transfer point (if applicable) and the Supply point. The objective is to achieve a balance on a daily basis within the permitted tolerances between the quantity of energy that is delivered at the Entry point and that redelivered at the Supply point per Balancing zone. Page 8 of 51

9 Subscription of transport Capacity between multiple Entry points and Supply points Entry point (1) Entry point (2) Balancing Entry zone zone A Supply point Transfer Capacity Balancing Supply point zone B On the basis of the principle reasonable endeavour Fluxys allows Supply points to be supplied by either Entry point 1 or 2. Nominations are made within the limits of accumulated capacities per Entry point and per transfer point The Grid User nominates the quantities of energy he wants to transport for the Entry points and the Transfer points (if applicable) in an aggregated way so that he can use the flexibility of an Entry/Exit system optimally. d) Capacity matching between subscribed Entry and Supply capacities The capacity matching rule applies on a daily basis for each Entry zone and for the Supply points that are connected to this Entry zone, as follows: Entry capacities (1) Entry Capacities (Primary and Secondary market) (2) Entry Capacities (Primary and Secondary market) (3) Entry Capacities (Firm, Primary market)1 With, in 2009, X = 90 % and Y = 100 % Supply capacities Y * [ Supply non-slp Capacities + Supply SLP Capacities ] X * Supply non-slp Capacities + Am * Firm SLP Capacity Supply SLP Capacities With Am = coefficient of month m (cf. table below). 1 Under the restriction that simulations showed satisfactorily that such Capacity can be used for feeding the concerned Supply points, Fluxys will also consider to apply this rule on Capacity acquired on the Secondary market for the Entry Points for which capacity is no more available on the Primary Market.. Page 9 of 51

10 m jan feb mar apr mai jun jul aug sep oct nov dec A m 100% 99% 75% 61% 49% 36% 27% 26% 39% 62% 76% 97% The first part of the capacity matching rule relates to the basic principle to avoid a possible hoarding of Capacity at Entry Points ( Entry Capacity hoarding ). This rule fixes the maximum level of Entry Capacity on the Primary and Secondary Market according to the Supply Capacities. Thanks to the second part of the capacity matching rule, the Grid User accesses to Entry Capacity at a lower level than the Supply Non-SLP Capacity according to a minimum of X% of the Supply Capacity. For the Supply SLP Capacity, the Grid User may sell part of its Entry Capacity, at least to the level of the coefficient of month Am. On the Primary market, the Supply SLP Capacity needs fully to be matched by an Entry Firm Capacity. This is to be found under the third part of the capacity matching rule. Following cases are not considered in this capacity matching rule : 1. the Supply Capacity Injection Storage Loenhout (Firm and Interruptible, a total Capacity of m³(n)/h), is excluded from the capacity matching rule ; 2. the Supply conditional HUB Capacity. e) Balancing system and tolerances Fluxys applies a daily balancing system with hourly tolerances per Balancing zone. The imbalances are put on an imbalance account. For each Grid User the imbalances are aggregated and cumulated per Balancing zone and per hour. The availability of basic data (provisional hourly allocations) required to follow up the balance positions is included in the basic services. The Grid User has to balance on each Balancing zone between the quantity of energy delivered at the Entry points and that redelivered at the Supply points. The transfers of imbalances from one Balancing zone to another is done automatically, within his subscribed transfer rights. Fluxys optimise on a continious bases the usage of the available transfer rights of the Grid users by a dynamic pooling of these rights. In order to facilitate the daily balancing, Fluxys offers the following hourly and daily tolerance levels: Daily Imbalance Tolerances (also called DIT). The Grid User's daily imbalance has to be within the daily imbalance tolerances for each Balancing zone; Page 10 of 51

11 Cumulated Imbalance Tolerances (also called CIT). The Grid User's cumulated imbalance during the day has to be within the cumulated imbalance tolerances for each Balancing zone; Hourly Imbalance Tolerances (also called HIT). The Grid User's hourly imbalance has to be within the hourly imbalance tolerances for each Balancing zone; A summary of these three tolerances is given in the diagram below: Excess CIT CIT + Excess HIT HIT + 6AM 12AM 6PM Excess HIT DIT + HIT - Hourly imbalance 12PM Shortfall HIT DIT - CIT - Shortfall HIT Cumulated imbalance Shortfall CIT Transport Capacity: Entry Capacity Services and Tariffs Firm Entry Capacity The Firm Entry Capacity tariff consists of a capacity component, which is a function of the subscribed Firm Entry Capacity (in m³(n)/h). The tariff for a standard contract of 1 (one) year is 7,8 per (m³(n)/h) of subscribed Firm Entry Capacity Conditional Entry Capacity If the transport cannot be assured under all conditions, Fluxys offers the Grid User the possibility to subscribe Conditional Capacity. This Transport Capacity can be considered as Firm Capacity except if the agreed, well-defined conditions are fulfilled. In case those agreed, well-defined conditions occur, Fluxys can interrupt this Capacity. The tariff for Conditional Capacity is composed of a capacity element, which is function of the subscribed Conditional Entry Capacity (in m³(n)/h). The tariff for a standard contract of 1 (one) year is 7,0 per (m³(n)/h) of subscribed Conditional Entry Capacity. Page 11 of 51

12 Interruptible Entry Capacity Interruptible Entry Capacity level 1 Fluxys offers a specific quantity of Interruptible Entry Capacity per Entry point. These offered quantities are determined according to the capacity utilization at the considered Entry point, during the preceding Gas year. This is the Interruptible Entry Capacity level 1. The interruption of these Entry Capacities is determined by the nominations for the Entry Capacity at this Entry point. The Interruptible Entry Capacity is not submitted to the capacity matching rule. This Capacity can be subscribed on top of the Entry Capacities that are considered in this matching rule. This allows Grid Users to optimise their portfolio and increases the liquidity of the market. This Interruptible Entry Capacity is offered to the market in two subscription rounds: In a first subscription round, a maximal subscription Capacity per Entry point is communicated to each Grid User, and a deadline for first round subscription. This maximum is calculated pro rata the market share of the Grid User on 01/11/n. All subscriptions during this first subscription round are for the period from 01/01/n to 31/12/n. Interruptible Entry Capacities that were not subscribed during the first subscription round, are offered to the market during the entire year n on a first committed first served basis. During this second subscription round, the Interruptible Entry Capacity can also be subscribed for shorter periods than a year, as long as the end date is not later than 31/12/n. The tariff for Interruptible Entry Capacity level 1 is composed of a capacity element which is function of the subscribed first level Interruptible Entry Capacity (in m³(n)/h). The tariff for a standard contract of 1 (one) year is 6,2 per (m³(n)/h) of subscribed Interruptible Entry Capacity level Interruptible Entry Capacity level 2 Fluxys also offers a second level of Interruptible Entry Capacity. Subscription to this Capacity is unlimited, at the condition that no more Interruptible Entry Capacity level 1 is available at the considered Entry Point. Interruptible Entry Capacity level 2 is interrupted before interruption of the Interruptible Entry Capacity level 1. The tariff for Interruptible Entry Capacity level 2 is composed of a capacity element which is function of the subscribed Interruptible Entry Capacity level 2 (in m³(n)/h). The tariff for Page 12 of 51

13 a standard contract of 1 (one) year is 4,7 per (m³(n)/h) of subscribed Interruptible Entry Capacity level Operational Interruptible Entry Capacity Fluxys offers Grid User the possibility to subscribe to Operational Interruptible Entry Capacity. Interruption of this Operational Interruptible Entry Capacity depends on the utilization of this Capacity by Fluxys for its own operating needs. The subscribed Operational Interruptible Entry Capacity has to be matched with the subscribed Interruptible Capacity at the installations. The tariff for this Operational Interruptible Entry Capacity is composed of a capacity element which is function of the subscribed Operational Interruptible Entry Capacity (in m³(n)/h). The tariff for a yearly standard contract is 4,7 per (m³(n)/h) of subscribed Operational Interruptible Entry Capacity Day-ahead Interruptible Entry Capacity Fluxys offers Grid Users per Entry Point the daily Entry Capacities for the next day on an interruptible basis according to the Nominations. Such Entry Capacities are reduced or interrupted according to the Nominations on the concerned Entry Point. The Grid Users that wishes access to this service has to register as a day-ahead User. The day-ahead Users have Nomination rights that exceed their subscribed Capacities on the Entry Points. This service is valid for one year. The Nominations on this Capacity may be reduced and/or interrupted with a two full hours (full H+2) notification delay. The available Capacities are dependent of the Nominations of all Grid Users on the Entry Point. There are no limits set on Capacities to be nominated. The tariff for the Day-ahead Interruptible Entry Capacity is composed of one subscription fee and one capacity element. The subscription fee for a standard contract Day-ahead Interruptible Entry Capacity is of per year on all Entry Points of the Transport Network. The capacity component for a yearly standard contract Day-ahead Interruptible Entry Capacity is of 7,8 /m³(n)/h per year with invoicing on a daily basis for all Entry Points of the Transport Network. Page 13 of 51

14 Adjustment of the First Committed, First Served rule When the First Committed, First Served rule needs to be used and there are no capacities available on the Primary Market on the concerned Entry Point, the following rule regarding the treatment of demands as described here below shall apply to all running demands as soon as Capacity becomes available 2 : 1. Demands for extension of Supply Capacity having as Supply Point a Public Distribution and having the same link between the Entry Point and the Supply Point ; 2. Demands for extension of Supply Capacity having as Supply Point an Industrial Customer or a Power Plant having the same link between the Entry Point and the Supply Point ; 3. Demands for increase of Supply Capacity having as Supply Point a Public Distribution ; 4. Demands for increase of Supply Capacity for an Industrial Customer or a Power Plant ; 5. Demands of change of Entry Point coming from a new Grid User ; 6. Demands of change of Entry Point coming from an existing Grid User Support of Secondary Market Fluxys provides a platform on the Fluxys website ( in order to facilitate the Secondary Market. All Entry Capacities can be transferred on the Secondary Market. The rules for assignments on the Secondary Market are described in the Network Code for Transport. The tariff for using the Secondary Market platform shall be 200 per transaction and per Grid User Transport Capacity: tariffs for Supply Capacity SLP customers and Non-SLP customers: definition The End Customers connected to the distribution grid are divided into two categories, depending on the consumption profile: 2 In case of a Grid User loses a Customer, Fluxys automatically releases the Capacity associated to this Customer and offers it on the Primary Market. Fluxys accepts furthermore the demands related to reduction in Capacity on the Entry Points as long as there is no possibility to subscribe Capacity on those Entry Points on the Primary Market. Page 14 of 51

15 Non-SLP End Customers have a consumption profile that is established via an hourly registration system with tele-transmission installed on the measuring equipment. Currently every End Customer who consumes over 1 million m³(n) per year is considered a non-slp End Customer. The End Customers who are connected directly to the transport grid are non-slp End Customers. SLP End Customers have a consumption profile that is defined by periodical measurements and on the basis of an estimated consumption profile that is applied by the distribution system operator (SLP - Synthetic Load Profile). The consumption profile of SLP End Customers depends essentially on the temperature. Fluxys has developed Flexibility Services that are tuned to the specific needs of this End Customer profile Firm non-slp Supply Capacity The Firm Supply Capacity to supply a non-slp End Customer consists of: a Rate Flexibility-basic (RF) Capacity equal to 10% of the subscribed Supply Capacity ; a basic HIT + and a basic HIT (Hourly Imbalance Tolerance), both being equal to ½ of the subscribed Supply Capacity for the part below m³(n)/h, and to 1/6 of the subscribed Supply Capacity for the part above m³(n)/h ; a basic CIT (Cumulative Imbalance Tolerance) corresponding to 1 hour of the subscribed Supply Capacity (the CIT + and the CIT are equals to ½ CIT); a basic DIT + and a DIT (Daily Imbalance Tolerance), each being equal to 1/6 of the subscribed Supply Capacity. The tariff for the Firm non-slp Supply Capacity consists of two components: a capacity component based on the subscribed Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. The capacity component depends on the nature of the Supply Point: in order to supply a Supply Point that is connected to the high-pressure (HP) grid, the tariff for a Firm non-slp standard one year contract is 22,6 per m³(n)/h of subscribed non-slp Supply Firm Capacity, in order to supply a Supply Point connected to the medium pressure (MP) grid, the tariff for a Firm non-slp standard one year contract is 22,6 per m³(n)/h for the Firm non- SLP Supply Capacity subscribed on the HP-grid, increased by 10,5 per m³(n)/h for the Firm non-slp Supply Capacity subscribed on the MP-grid. The commodity component is 0,20% of the actual energy transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys. Page 15 of 51

16 Firm SLP Supply Capacity The Capacity subscribed to supply an SLP End Customer, is always Firm SLP Supply Capacity. The Firm SLP Supply Capacity cannot be used to supply a non-slp End Customer. The Firm Supply SLP Capacity is a Capacity for which the Transport can be guaranteed at any time during the contract period in normal working conditions. This Capacity is firm and consists of: a Rate Flexibility-basic (RF) Capacity equal to 10% of the subscribed Supply Capacity ; a basic HIT + and a basic HIT (Hourly Imbalance Tolerance), both being equal 1/6 of the subscribed Supply Capacity ; a basic CIT (Cumulative Imbalance Tolerance) corresponding to 1 hour of the subscribed Supply Capacity (the CIT + and the CIT are equals to ½ CIT); a basic DIT + and a DIT (Daily Imbalance Tolerance), each being equal to 1/6 of the subscribed Supply Capacity. The exact rules relating to the flexibility for the SLP rights are defined in the transport contract. The tariff for the Firm SLP Supply Capacity consists of two components: a capacity component based on the subscribed Firm SLP Supply Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. Page 16 of 51

17 The capacity component depends on the nature of the Supply Point: in order to supply a Supply point that is connected to the high pressure (HP-) grid, the tariff for a Firm SLP standard one year contract is 22,6 per m³(n)/h subscribed Firm SLP supply Capacity; to supply a Supply Point connected to the medium pressure (MP-) grid, the tariff for a Firm SLP-standard one year contract is 22,6 per m³(n)/h for the Firm SLP Supply Capacity subscribed on the HP-grid, increased by 10,5 per m³(n)/h for the Firm SLP Supply Capacity subscribed on the MP-grid. The commodity component is 0,20% of the actual energy transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys Firm Capacity for injection in the storage facility in Loenhout The Supply Capacity for gas injection in the storage facility in Loenhout is managed by a specific firm service and a specific tariff. Nor basic RF (Rate Flexibility), nor basic HIT, nor basic CIT, nor basic DIT are included in this Supply Capacity. There is no possibility to subscribe additional CIT, nor additional DIT, nor additional RF. The tariff for the Firm Supply Capacity for injection in Loenhout consists of two components: a capacity component that depends on the subscribed Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. The capacity component for a standard one year contract is 18,2 per m³(n)/h subscribed Firm Capacity for injection in the storage facility in Loenhout. The commodity component is 0,20% of the energy actually transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys Conditional Supply Capacity Fluxys offers in the context of its proactive congestion management of the Transport Network the possibility to subscribe to Conditional Supply Capacity. The reductions or interruptions of the Nominations on the Conditional Capacities only happens when conditions of extreme saturation of the Transport Network is being met. Such situation is characterized by well-defined conditions : an equivalent ambient temperature lower or equalling Y C. The Y factor will each year be determined according to the results of the Page 17 of 51

18 simulations made on the Transport Network for the coming year, and shall be communicated to the Grid Users. Supply Conditional Capacity also includes : a basic RF (Rate Flexibility) Capacity equal to 10% of the subscribed Supply Capacity; a basic HIT + and a HIT corresponding to 1/2 of the subscribed Supply Capacity for that part of MTSR below m³(n)/h and 1/6 of the subscribed Supply Capacity for that part MTSR above m³(n)/h ; a basic CIT corresponding to 1 hour of the subscribed Supply Capacity (the CIT + and the CIT are equals to ½ CIT) ;. a basic DIT + and a DIT corresponding each to 1/6 hour of the subscribed Supply Capacity. Remark : the basic-rf, the basic-hit, the basic-cit and the basic-dit are not available when the interruption occurs. The tariff for the Conditional Capacity consists of two components: a capacity component that depends on the subscribed Conditional Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. The capacity component depends on the nature of the Supply point: in order to supply a Supply point connected to the high pressure (HP-) grid, the tariff for a Conditional standard one year contract is 20,4 per (m³(n)/h) subscribed Conditional Capacity, in order to supply a End Customer connected to the medium pressure (MP-) grid, the tariff for a Conditional standard one year contract is 20,4 per m³(n)/h for the Conditional Capacity on the HP-grid, increased by 9,5 per m³(n)/h for the Conditional Capacity subscribed on the MP-grid. The commodity component is 0,20% of the energy actually transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys Conditional HUB Supply Capacity Fluxys offers the possibility to subscribe to Conditional HUB Supply Capacity. This Capacity allows the Grid User to transport gas from the Zeebrugge Balancing zone (BAP Zeebrugge) to the HUB. The gas exchange on the HUB is submitted to the rules as published in the HUB Service Agreement by Huberator. A Grid User who delivers gas to an End Customer that has an unforeseen shut down can nominate this excess gas within-day to the HUB and remain balanced on the BAP. However, finding a counterparty on the HUB for this excess of gas is of the responsibility of Page 18 of 51

19 the Grid User. The operational rules of this Transport service are well aligned on such specific demand so that all risks regarding the integrity of the Network are avoided. Only the within-day Nominations are accepted for this Supply Conditional Capacity. The Conditionality of this Capacity is linked to the gas quality balance of VTN that are different to the gas quality specified on the different Supply Points. Fluxys may then under certain well defined conditions, reduce and/or interrupt such Capacity to the HUB. The conditions for the subscription of Supply Conditional HUB Capacities are determined at the time of the Capacity Demand, according to the conditions on the Network. The Conditional HUB Supply Capacity is not included in the capacity matching rule, and does not include nor any basic RF, nor basic HIT, nor basic CIT nor basic DIT. There is no possibility to subscribe additional CIT, nor additional DIT, nor additional RF. The Supply Conditional HUB Capacity is to be reduced and/or interrupted with a notification period of two full hours (full H+2). The tariff for the Conditional Capacity consists of two components: a capacity component that depends on the subscribed Conditional Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. The capacity component is 16,3 per (m³(n)/h) subscribed Conditional HUB Capacity. The commodity component is 0,20% of the energy actually transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys Switch H/L Supply Capacity Some End Customers on the transport grid are connected to both the H grid and the L grid and are able to use both gas types. In order to deliver gas to this type of End customers, Grid Users can subscribe Conditional switch H/L Supply Capacity, as long as a switch does not influence the other End Customers. The Capacity matching of this Supply Capacity is on the H grid. This Capacity is and interruptible on the L grid. If congestion occurs on the L grid, Fluxys can ask the Grid User to switch back to H gas. Switch H/L Supply Capacity includes: A basic RF (Rate Flexibility) Capacity equal to 10% of the subscribed Supply Capacity, (remark: if the switch H/L Supply Capacity is interrupted, the corresponding RF will be interrupted as well) Page 19 of 51

20 A basic HIT corresponding to 1/2 of the subscribed Supply Capacity if it is smaller or equal than m³(n)/h and 1/6 of the subscribed Supply Capacity if it is bigger than m³(n)/h. A basic CIT corresponding to 1 hour of the subscribed Supply Capacity (remark: this CIT shall not be available anymore at the time of interruption). A basic DIT corresponding to 1/6 hour of the subscribed Supply Capacity (remark: this DIT shall not be available anymore at the time of interruption). The tariff for the switch H/L Capacity consists of two components: a capacity component that depends on the subscribed switch H/L Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. The capacity component depends on the nature of the Supply Point: the tariff for a switch H/L standard one year contract is 24,7 per m³(n)/h subscribed switch H/L Capacity, The commodity component is 0,20% of the energy actually transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys Interruptible Supply Capacity Fluxys offers in the context of its proactive congestion management of the Transport Network the possibility to subscribe to Supply Interruptible Capacity. The Supply Interruptible Capacities are determined according to the results of the simulations made on the Transport Network at end of the year for the coming year. The Nominations of this Capacity may be reduced and/or interrupted when Fluxys is not able to guarantee the contractual pressure on the Supply Points of the Transport Network. Supply Interruptible Capacity also includes : A basic RF (Rate Flexibility) Capacity equal to 10% of the subscribed Supply Capacity; A basic HIT + and a HIT corresponding to 1/2 of the subscribed Supply Capacity for that part of MTSR below m³(n)/h and 1/6 of the subscribed Supply Capacity for that part MTSR above m³(n)/h ; A basic CIT corresponding to 1 hour of the subscribed Supply Capacity (the CIT + and the CIT are equals to ½ CIT) ;. A basic DIT + and a DIT corresponding each to 1/6 hour of the subscribed Supply Capacity. The Nominations on the Supply Interruptible Capacities are reduced or interrupted according to the load on the Transport Network. Page 20 of 51

21 Remark : the basic-rf, the basic-hit, the basic-cit and the basic-dit are reduced and/or interrupted at the time of the interruption proportionnally to the reduced and/or interrupted Capacity. The tariff for the Interruptible Capacity consists of two components: a capacity component that depends on the subscribed Interruptible Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. The capacity component depends on the nature of the Supply Point: in order to supply a Supply Point connected to the high pressure (HP-) grid, the tariff for an interruptible standard one year contract is 13,6 per (m³(n)/h) subscribed Interruptible Capacity, in order to supply a customer connected to the medium pressure (MP-) grid, the tariff for an interruptible standard one year contract is 13,6 per m³(n)/h for the Interruptible Capacity on the HP-grid, increased by 6,3 per m³(n)/h for the Interruptible Capacity subscribed on the MP-grid. The commodity component is 0,20% of the energy actually transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys Interruptible Supply Capacity for injection in the storage facility in Loenhout The Supply Interruptible Capacity for gas injection in the storage facility in Loenhout is managed by a specific service and a specific tariff. Such Capacity may be reduced and/or interrupted according to the gas consumption in the region of Antwerpen. No basic RF (Rate Flexibility), no basic HIT, CIT and DIT are included in this Supply Interruptible Capacity. There is no possibility to subscribe additional CIT, nor additional DIT, nor additional RF. The tariff for the Interruptible Supply Capacity for injection in Loenhout consists of two components: a capacity component that depends on the subscribed Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. The capacity component for a standard one year contract is 10,9 per m³(n)/h subscribed Interruptible Capacity. Page 21 of 51

22 The commodity component is 0,20% of the energy actually transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys Operational Interruptible Supply Capacity for injection in the storage facility in Loenhout The Operational Interruptible Supply Capacity for injection in the storage facility in Loenhout is managed by a specific service and a specific tariff. Such Capacity is offered to Grid Users that are Users of the Storage Facility in Loenhout or has as a counterpart a User of the Storage Facility in Loenhout. Such Capacities are allocated proportionally to the by the Grid User or its counterpart subscribed Injection Firm Capacity of the Storage Facility in Loenhout. No basic RF (Rate Flexibility), no basic HIT, CIT and DIT are included in this Supply Capacity. This Capacity can be interrupted for balancing purposes of the grid. The tariff for the Operational Interruptible Supply Capacity for injection in the storage facility in Loenhout consists of two components: a capacity component that depends on the subscribed Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. The capacity component for a standard one year contract is 10,9 per m³(n)/h subscribed Operational Interruptible Supply Capacity for injection in the storage facility in Loenhout. The commodity component is 0,20% of the energy actually transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys NDM Supply Capacity On the transport grid most of the End Customers are provided with hourly volume metering registration equipment. Some End Customers however are not provided with this hourly registration equipment and are de facto not submitted to the balancing tolerance system. In order to take into account this specificity, a specific service and tariff for these End Customers is offered: the NDM Supply Capacity service. The subscribed Capacity to supply a NDM End Customer has to be a Supply Capacity of type NDM. This Capacity is Firm and does not include RF, basic CIT, basic DIT. For this Page 22 of 51

23 type of End Customer, the Grid User does not have the possibility to subscribe additional CIT or additional DIT. The tariff for NDM Supply Capacity consists of two components: a capacity component which is function of the subscribed Capacity (in m³(n)/h) and a commodity component that relates to the energy actually transported. The capacity component is function of the nature of the Supply point: for a NDM Supply Point connected to the high pressure (HP-) grid, the tariff for a NDM standard one year contract is 27,7 per m³(n)/h subscribed NDM Supply Capacity. for a NDM Supply Point connected to the medium pressure (MP-) grid, the tariff for a NDM standard one year contract is 27,7 per m³(n)/h for the NDM subscribed Capacity, increased by 10,5 per m³(n)/h for the subscribed NDM Supply Capacity on the medium pressure grid. The commodity component is 0,20% of the energy actually transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys Main base load Supply Transport Capacity Certain End Customers who have a high yearly average gas consumption per hour and who, moreover, show a constant consumption profile, will be defined as MBT End Customers, according to well-defined criteria. In order to deliver gas to these End Customers, the Grid User can obtain a specific Supply Capacity tariff, called MBT Supply tariff. The MBT tariff is limited to Non-SLP Supply Points. The MBT tariff can only be applied on Firm Non-SLP Capacity. For the Interruptible or Conditional Capacity subscribed to redeliver gas to the MBT End Customer, the MBT tariff will not be applied. The associated flexibility rights (HIT, CIT, DIT) of MBT Supply Capacity are the same the Firm Non-SLP Supply service. After having identified an End Customer as an MBT End Customer, Fluxys will determine in which bracket of MBT tariff the End Customer is located. There are four levels of the MBT tariff, depending on the yearly average subscribed Capacity per hour for the MBT End Customer: Level 1: m³(n)/h: 25% discount Level 2: m³(n)/h: 40% discount Level 3: m³(n)/h: 55% discount Level 4: m³(n)/h and more: 70% discount. Page 23 of 51

24 Capacity for periods of less than one year: seasonal tariff A Grid User who wants to subscribe to Firm non-slp Supply Capacity, Supply Capacity for injection in Loenhout, Conditional Supply Capacity, Interruptible Supply Capacity, NDM Supply Capacity or MBT Supply Capacities for periods of less than 12 months, can subscribe to Capacity at the seasonal Capacity tariff for at least 30 consecutive days (with the exception of February: during this month a subscription for the entire month 28 or 29 days, depending on the year is accepted). Seasonal Capacity cannot be reserved more than one year in advance of the Capacity being made available. The seasonal Capacity tariff consists of two components: a capacity component based on the subscribed Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. The capacity component for a standard seasonal contract is equal to the annual tariff for the Capacity concerned (Firm non-slp Supply Capacity, Supply Capacity for gas injection in the storage facility in Loenhout, Interruptible Supply Capacity, Conditional Supply Capacity, NDM Supply Capacity or MBT Supply Capacity), divided by 365 days, multiplied with the number of days that the service is subscribed and multiplied with a coefficient that varies depending on the month in accordance with the table shown below. If the period covers several months, the sum will be taken for all months for which the service has been subscribed for. Seasonal Capacity tariff coefficients January February March April May June July August September October November December Seasonal tariff N T year = m = days x D m x SC m with D m = Number of days subscribed during month m with SC m = Seasonal coefficien t of month m with N = Number of months Seasonal Capacity The commodity component is 0,20% of the energy actually transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys. Page 24 of 51

25 Capacity for periods of less than 30 days: short-term Capacity tariff A Grid User who wants to subscribe to Firm non-slp Supply Capacity, to Supply Capacity for gas injection in the storage facility in Loenhout, Interruptible Supply Capacity, Conditional Supply Capacity, NDM Supply Capacity, or MBT Supply Capacity for a period of less than 30 days, may subscribe to Capacity at the short-term Capacity tariff for at least 1 day. Short-term Capacity cannot be reserved more than three months in advance of the Capacity being made available. The short-term Capacity tariff consists of two components: a capacity component based on the subscribed Capacity (in m³(n)/h), a commodity component that relates to the energy actually transported. The capacity component for a standard short term contract is equal to the annual tariff for the Capacity concerned (Firm non-slp Supply Capacity, Supply Capacity for gas injection in the storage facility in Loenhout, interruptible Supply Capacity, Conditional Supply Capacity, NDM Supply Capacity or MBT Supply Capacity), divided by 365 days, multiplied with the number of days for which the service is subscribed, multiplied with the seasonal coefficient of the month concerned and multiplied with 1,2. Short term tariff = N m = 1 T yearly 365 days x D m x SC m x 1, 2 with D m with SC = Number of days during month m m = Seasonal coefficient of month m with N = Number of months Short term capacity The commodity component is 0,20% of the actual energy transported, valued on the basis of the Dow Jones publications published for the market in Zeebrugge. Fluxys reserves the right to change this reference if this price is no longer representative for the price of the natural gas supplied by Fluxys Transit-Transport Synergy A Grid User may under certain conditions use its subscribed Transit Capacities in order to feed a end-customer on the Transport Network, meaning that the Grid User will be entitled to nominate from its Delivery Point (Transit) to a Supply Point (Transport). Page 25 of 51

26 Following conditions need to be met: Transit Capacity is considered as an Entry Capacity in the Transport capacity matching rule if there is no Firm Capacity available on the Primary Market for the concerned Entry Point (Transport). This means that a Supply Point needs to be linked to the Transit Capacity; The Transport capacity matching rule does not consider the Transit Capacity if Transport Firm Capacity is still available on that Entry Point; This service, like all Capacity Demand, is subject to the results of simulations made on Capacity; The sum of the Nominations of the Grid User on Transport and on Transit on the concerned Entry Point may not excess the total of its subscribed Capacities, as indicated in the graph here below; The Nomination on Transit may not exceed its subscribed Transit Capacity, as indicated in the graph here below; Subscribed Capacity Nominations Synergy Transit Transit + Transport Transport ARF (Additional Rate Flexibility) Capacity A Grid User who subscribes Firm SLP, Firm non-slp Supply Capacity, Interruptible or Conditional Supply Capacity or Switch H/L Supply Capacity, can subscribe to Additional RF (Rate Flexibility) Capacity for a maximum quantity corresponding to: 5% of the subscribed Firm SLP Capacity, 20% of the subscribed Firm non-slp, Interruptible, Conditional and Switch H/L Supply Capacity (injection Loenhout, Conditional HUB and NDM excluded). Additional RF (Rate Flexibility) Capacity is always reduced and/or interrupted at the same time that Interruptible, Conditional, MBT and Switch H/L is reduced and/or interrupted. The tariff for the subscribed additional RF for a standard one year contract is 13,0 per m³(n)/h subscribed additional RF. Page 26 of 51