The New Market Model in Austria a case study

Transcription

1 The New Market Model in Austria a case study Harald Stindl, Joint Managing Director, Gas Connect Austria Vienna, 31 January 2013

2 Gas Connect Austria and the OMV Group Gas &Power Activities OMV Group Activities: Gas & Power / ExplorationProduction / Refining and Markteting EBIT 2011: EUR Mm 2,500 Employees: 30,500 ITO Gas Connect = MAM ITO BOG 51% ISO TAG GmbH 11% Storage nat. + internat. International Logistics Hub, Gas and Power trading Group Strategy Growth guided by E&P equity gas availability supported by portfolio optimization Infrastructure investment supports group integration and enables equity gas monetization in short: integrated equity gas marketer MAM = Market Area Manager, ITO = Independent Transmission Operator, ISO= = Independent System Operator 2

3 Business Model Gas Connect Austria Corporate Values: Responsibility, Fairness, Long-term view Mission Diversified Know-how provider of Gas Transportation in Austria TSO / DSO / MAM Know-how + diversification - Operations & Maintenance Services - Construction Services (Pipeline Knowhow for the group) Participations Strategy of the TSO - Increasing Austria s role as hub, but according to market demand - Optimizing of asset portfolio position; within Austria, there is pipeline competition between TSOs, 3 operational + 3 project companies; Regional / crossborder competition - In-house staffing of 380 people TSO = Transmission System Operator DSO = Distribution System Operator - Price cap regulation - Flexibility for TSO pricing missing 3

4 New market model Benefits / Changes - Balance group system also for transit in total 69 BGs (status quo: ) with balancing on the transmission system unbalanced nominations possible done by MAM - Entry/Exit throughout no flange trading any more different price structure no 50:50 E/E price relationship - Expectation of higher competition and liquidity on the wholesale market due to the virtual trading point - Coordinating body for transmission system MAM (Market Area Manger) - Coordination across transmission and distribution on the basis of close cooperation between MAM and DAM (Distribution Area Manager); exit transmission rolled into distribution tariffs - Some changes in the allocation of distribution system cost 4

5 Responsibility Entry/Exit from January 1st Implementing recent changes in the new Market Model secures a significant improvement of service quality by enhanced services on offer - Free allocable capacities - FZK - Enhanced product quality: access to VTP on firm basis - No usage restrictions to other points in the market area - More than 80% of all GCA capacities in FZK quality available - Dynamically allocable capacities - DZK - Enhancement of service quality compared to P2P transportations via access to VTP on interruptible basis a maximum flexibility in structuring contract durations - Yearly: Starting with 1 October - Quarterly: Starting with 1 January, 1 April, 1 July, 1 October - Monthly: Starts at the beginning of each month - Daily 5

6 Fairness Entry/Exit from January 1st Successful launch of Entry/Exit Booking for our customers A snapshot of the market shows a high level of customer satisfaction due to a user friendly booking system (OCB ) which was transferred with improved functionalities in the new market model constant information updates via an information event and dedicated Key Account Management smooth transferral of contracts from the P2P System to the E/E System carefree Balancing Group Responsible Services a swift handling of increased short-term bookings Since the start of Entry/Exit booking in November, short-term bookings increased by over 600% 6 31 January 2013 European Gas Conference

7 Fairness Entry/Exit from January 1st Successful launch of Entry/Exit Booking for our customers Capacity Bookings in Numbers Bookings per Entry/Exit Points Long Term > 1 Year Short Term < 1 Year Wheeling Überackern Oct Mosonmagyarovar Exit January 2013 Nov Dec Murfeld Exit December 2012 November 2012 until 24.Jan Baumgarten Entry Since December 2012 capacity bookings increased by ~ 600%* - Predominantly daily capacity products are booked at Baumgarten Entry, Mosonmagyarovar Exit and Murfeld Exit * A comparison between December 2011/2012 and January 2012/ January 2013 European Gas Conference

8 Vision Entry/Exit from January 1st Gas Connect Austria continues to innovate capacity booking and bundling activities Gas Connect Austria is a shareholder of the European Auction Platform PRISMA - All products of Gas Connect Austria will be auctioned on the European Platform with the possibility of cross border product bundling - Gas Connect Austria has kicked off the process of product bundling - Gas Connect Austria is actively involved in designing the new booking system for customers Auction Mechanism (according to CAM Network Code) - Ascending Clock (long-term) - Uniform Price (short-term) - Auction mechanism of secondary capacity is under development Planned Customer Information Event 14 February Vienna 8

9 Implementation and first experiences with the new Austrian market model 9

10 Publication of Data - Work in Progress: - Coordination and communication necessary concerning data suppliers - High IT-support and IT-resources necessary 10

11 Experience so far first lessons learnt Market start: well done good cooperation between customers and gas industry All parties are in a learning phase intensive support of our customers Stable operation due to proper behaviour of all market participants IT-systems: stable, further development in progress Use it or lose it Future changes: all stakeholders need more time for implementation 11

12 BGR current overview BG = Balancing group BGR = Balancing Group Responsible - Approved (i)bgrs: 69 on 1 January Registrations under progress:

13 Deadlines for 1 January 2013 (1) - PLAN Request for Energy Identification Code(s) done NU BGR BGR registration finished (Including registration of balance groups and sub balance accounts) done BGR Agreement with BG-members (Allocation authorization for network users) done BGR Assignment of capacity contracts to BGs/SBAs done NU Structure of BG/SBA incl. all capacity assignments are finished done BGR Start of data exchange with system operators (Early pre-tests will be arranged by respective system operators) done BGR Deadline for day-ahead nominations (gas day :00) , 14:00 hr done BGR :00 hr Pre-matching and matching cycle with all system operators , 15:25 / 15:45 (first confirmation / first imbalance notice) Start of physical gas flow in the Market Area East Entry/Exit-System done done

14 Deadlines for 1 January 2013 (2) - ACTUAL STEP 2: BGR registration finished (Including registration of balance groups and sub balance accounts) BGR DONE??? 12 December 2012: 12 approved BGRs (and 9 working days remaining until 1 January!!!) 12 December 2012: remaining BGRs in registration (more than 70!!!) mostly missing registration at CEGH mentalrai - Fotolia.com SOLUTION: ibgr (E-Control ordinance) Agreement with BG-members (Allocation authorization for network users) Assignment of capacity contracts to BGs/SBAs, etc. BGR NU 14

15 Deadlines for 1 January 2013 (3) - ACTUAL Start of physical gas flow in the Market Area East Entry/Exit-System Pre-matching and matching cycle with all system operators , 15:25 / 15:45 (first confirmation / first imbalance notice) Deadline for day-ahead nominations (gas day :00): , 14:00 hrs Start of data exchange with system operators (Early pre-tests will be arranged by respective system operators) Structure of BG/SBA incl. all capacity assignments are finished Assignment of capacity contracts to BGs/SBAs Agreement with BG-members (Allocation authorization for network users) macgyverhh - Fotolia.com 15

16 The First KNEP Experience builds the basis Stipulated time frame for establishment 16 April June 2012 NRA Approval 11 January 2013 Approved projects: - G Reverse Flow - Prolongation of the Pressure Support Agreement (PSV) to provide a short-term resolution of the Oberkappel Criticism/Conditions: - Deliver investment steps targeting the capacity 7 Fields - Provide a holistic overview of the capacity requests on all decisive and non-decisive Entry/Exit Points - Develop a feasibility study, and a reasoning for the respective choices how to resolve the from the Austrian side. for continuous improvement. - A coordinated process plan for the next KNEP is under development - A more active coordination through the Market Area Manager of the parties involved (TSOs and Distribution Area Manager, Market Participants) - Develop a tool for modelling gas flows and analysing scenarios - Include a more profound analysis of the Austrian Energy Policy Goals - Consideration of the national Network Development Plans of adjacent TSOs KNEP = Coordinated Network Development Plan 16

17 Outlook for further integration - Early days to assess impact of the new market model for the Austrian market - Austria`s position in the European network partly dependent on future projects and on market demand - Integration with adjacent markets will proceed - given sufficient liquidity on the CEGH this should be attractive for shippers - Austria, Czech Republik, Slovakia Trading Region not first priority but to be considered alongside other options 17

18 Thank you for your attention! 2012 GAS CONNECT AUSTRIA GmbH floridotower Floridsdorfer Hauptstraße Wien, Vienna, Austria T