NATURAL GAS MARKET MODEL IN CROATIA

Transcription

1 New York State Public Service Commission (NYS PSC) and Croatian Energy Regulatory Agency (HERA) Zagreb, Croatia, June 2-5,2008 NATURAL GAS MARKET MODEL IN CROATIA Nikola Vištica, BSc Head of the Department for Gas and Oil Systems and Quality of Service Goran Babić, BSc Associate in Department for Gas and Oil Systems and Quality of Service

2 Subordinate legislation in the gas sector new Act on the Gas Market (AGM) Market opening for non-household customers Market opening for all customers Regulation on the security of natural gas supply General Conditions of Natural Gas Supply Rulebook on the Natural Gas Market Organisation Network Rules for the Transmission System Network Rules for the Distribution System Rules for the Use of Gas Storage System Rules for the Use of LNG Facility Ordinance on delivery of data on investment projects Ordinance on the fee for connection to the gas network and for connected power increase Metodology for provision of natural gas balancing services in the gas pipeline system Tariff systems for regulated energy activities in gas sector Decision on tariff items amounts for regulated energy activities in the gas sector Decision on price of natural gas for wholesale suppliers of suppliers of tariff customers

3 Gas market participants pursuant to AGM 1 gas procurement undertaking 1+ gas producer 1 storage system operator 38+ suppliers representative GAS MARKET 1 transmission system operator 38 distribution system operator mediator LNG system operator ~ tariff customers ~ eligible customers

4 New gas market participants Gas balancing group representative INA GPZ, HEP, Energo, Termoplin (suppliers) Gas market operator HROTE Gas system administrative undertaking Plinacro

5 1 st st stage one balancing group

6 Balancing group Balancing group - virtual association Each supplier has to pertain to a balancing group or establish it s own group. Customer becomes a member of a balancing group: - directly by concluding a membership agreement with balancing group representative (large customers) - indirectly by concluding a supply agreement with supplier A member of the balancing group is not allowed to pertain to another balancing group at the same time Each balancing group has it s representative Balancing group representative can be any member of the balancing group Members of the balancing group elect their representative

7 Balancing Group Representative - duties Calculates planned energy consumption of it s balancing group and planned energy exchange with other balancing groups Delivers data on planned consumption of it s group to Gas Market Operator Pays for balancing energy of it s group to Gas Market Operator Forwards a cost of balancing energy to members of the group that actually caused lack of energy balance INA GPZ, HEP, Termoplin, Energo,

8 Gas Market Operator - duties Collects offers for balancing energy Forms a priority list for offered balancing energy ( merit order list ) Delivers the priority list to Gas System Administrative Undertaking Criteria for priority of offers: 1. price 2. quantity 3. receiving time Accounts on monthly basis costs of balancing energy on the basis of delivered planned energy consumption of each balancing group and measured parameters HROTE

9 Gas System Administrative Undertaking - duties Administrates transmission system on the basis of online data on network status at relevant points Conducts physical balancing of gas system in line with delivered priority list for offered balancing energy Presupposes congestion case and take measures to prevent it Take prescribed measures in crisis situations PLINACRO GSAU

10 Transmission System Operator - duties Besides duties prescribed by AGM, according to the Rulebook the TSO: forwards a real time data on status of transmission system to PLINACRO - GSAU on daily basis delivers hourly measured data for entry and exit points to Gas Market Operator and Balancing Group Representative on monthly basis delivers hourly measured data for exit points to distribution system operators delivers approved nominations to Balancing Group Representative PLINACRO-TSO

11 Distribution System Operator - duties Besides duties prescribed by AGM, according to the Rulebook the DSO: receives historical hourly measured data from PLINACRO-TSO prepares standard load diagram of distribution system once (or twice) a year makes correction of standard load diagrams on the basis of historical hourly measured data (received from PLINACRO-TSO) once (or twice) a year performs checks of standard load diagrams by measuring real hourly consumption of certain number of customers delivers approved nominations for each supplier to Balancing Group Representative

12 Storage system operator / LNG system operator Besides duties prescribed by AGM, according to the Rulebook the Storage system operator / LNG system operator: delivers approved nominations to Balancing Group Representative

13 Gas Producer Besides duties prescribed by AGM, according to the Rulebook the Gas Producer: delivers it s own planned load diagram to PLINACRO GSAU delivers approved nominations for each supplier to Balancing Group Representative

14 Supplier (trader( trader) Act on the Gas Market (Art. 40., Item 13.) IN ITS BUSINESS RECORDS, PURSUANT TO THE RULES OF INTERNAL ACCOUNTING, KEEP SEPARATE RECORDS FOR THE SUPPLY OF ELIGIBLE CUSTOMERS AND THE SUPPLY OF TARIFF CUSTOMERS besides duties prescribed by AGM, according to the Rulebook the Supplier : provides required quantities of gas by concluding contracts with gas producer, gas procurement undertaking and/or other gas supplier sends nominations to system operators on a daily basis plans consumption of it s own customers on the basis of standard load diagrams of the distribution area and hourly load diagrams for large customers pays for balancing energy to Balancing Group Representative based on mutual contractual obligations Offers unused capacity on secondary gas market

15 Customers Eligible customer from 1 August > all customers except households from 1 August > all customers right to choose a gas supplier of his/her choice, including the right to switch to a new gas supplier duty to pay for used balancing energy based on mutual contractual obligations with supplier Large customer defined by the Rolebook -> consumption 1 bm 3 /y and/or m 3 /h obliged to install hourly consumption gas meters and to create load diagrams (diagram can be also made by supplier if that is defined by contract) connected to distribution or transmission system Tariff customer not permitted to change a supplier right to be supplied with gas according to regulated prices pays a balancing energy fee comprised in final price (TS for supply)

16 1 st st stage one balancing group

17 2 ndt ndt stage two or more balancing groups

18 Proposal for natural gas market model in Croatia BEFORE ENTERING INTO FORCE OF THE ROLEBOOK REGULATORY AGENCY DAY BEFORE GAS DAY AFTER GAS DAY HROTE - GMO 7 BALANCING ENERGY BIDDER 8 1. HISTORICAL HOURLY MEASURED DATA (PREVIOUS 2 YEARS) PLINACRO - GSAU STANDARD LOAD DIAGRAM FOR DISTRIBUTION AREA GAS BALANCING GROUP REPRESENTATIVE 3. LOAD DIAGRAM FOR LARGE CUSTROMER 4. NOMINARIONS AND RE-NOMINATIONS GAS PROCUREMENT UNDERTAKING GAS PRODUCER 5. APPROVED NOMINATIONS FOR EACH SUPPLIER 6. PLANNED ENERGY CONSUMPTION (EXCHANGE) OF BALANCING GROUP PLINACRO - TSO 4 SUPPLIER 7. BALANCING ENERGY OFFER PRIORITY LIST FOR OFFERED BALANCING ENERGY 9. MEASURED DATA FOR BALANCING GROUP MEMBERS 10. COST OF BALANCING ENERGY OF THE BALANCING GROUP STORAGE SYSTEM OPERATOR BALANCING GROUP 1 ELIGIBLE AND TARIFF CUSTOMERS LARGE CUSTOMER DISTRIBUTION SYSTEM OPERATOR 3 5

19 Reservation of gas system capacity System operators obliged to announce available firm capacity of the system Supplier right to reserve only firm capacity - contractually guaranteed by the system operator Reservations are submitted to: 1. PLINACRO-TSO 2. Distribution System Operator (only upon connection approval) 3. Storage System Operator 4. LNG System Operator (2011???) Priority at the reservation: 1. supply of tariff customers 2. supply of eligible customers 3. tranzit In case of capacity shortage, partial capacity is reserved

20 Nomination procedure Supplier sends nominations a day before gas day Nominations are sent to: 1. PLINACRO-TSO 2. LNG System Operator (2011???) 3. Storage System Operator Nomination - prior reporting by the user to the system operator of the: daily gas quantity (m 3 ) that he wishes to inject into or withdraw from the system Expected maximum capacity (m 3 /h) and the actual hour of it s occurrence Hourly load diagram (large customer) At later stage of the market functioning nominations are made on hourly basis planned capacity (m 3 /h) for each hour of a gas day FIRST PRVE NOMINATIONS NOMINACIJE APPROVAL OR REJECTION POTVRDA ILI OF ODBITAK FIRST PRVIH NOMINATIONS NOMINACIJA RE-NOMINATIONS RENOMINACIJA POTVRDA APPROVAL ILIOR REJECTION ODBITAK OF RENOMINACIJA, RE-NOM., NOMINATION OBJAVA ANNOUNCEMENT NOMINACIJA EXTRA RE- NAKNADNA NOMINATIONS RENOMINACIJA REJECTION ODBITAK ILI OR SUBSEQUENT NAKNADNA ANNOUNCEMENT OBJAVA OF NAKNADNIH EXTRA RE- RENOMINACIJA NOMINATIONS 06:00 13:00 14:00 15:00 16:00 17:00

21 Load Diagrams households STANDARD large customers STANDARD + RELATIV

22 Primary and secondary market of gas system capacity PRIMARY MARKET market of the capacity traded directly by PLINACRO-TSO using use it or lose it principle If PLINACRO-TSO identifies unused reserved capacity, supplier is obliged to offer it on secondary market (otherwise PLINACRO-TSO revokes supplier s right on unused capacity and offers it on secondary market) SECONDARY MARKET Supplier offers it s own unused capacity for specific time period to rent capacity on secondary market a supplier needs PLINACRO-TSO s approval in order to prevent system congestions

23 Switching supplier procedure to switch supplier an eligible customer has to sign contract with new supplier until pre-defined day in a month switching supplier procedure is led by Gas Market Operator when switching, the new supplier takes over the right on the capacity reserved for supplying the customer

24 Conclusion (1) 1 ST STAGE of market regime: roles, duties and rights of the new market participants defined by AGM and subordinate legislation new roles and duties of the existing market participants defined by AGM and subordinate legislation all participants qualified for their roles one balancing group set up Reservation (month, year, a few years) and nomination (hourly based with maximum capacity (m 3 /h) and the actual hour of it s occurrence) introduced balancing energy accounting introduced if there is insufficient number of balancing energy bidders the price of balancing energy defined by Metodology / Goverment decision transitional period for accounting costs of balancing energy without real charge - 3 / 6 / 12 months

25 Conclusion (2) 2 ND STAGE of market regime : possible establishment of two or more balancing group price of energy as well as balancing energy formed on market basis (more balancing energy bidders needed) all nominations and load diagrams hourly based (implementation deadline depends on provisions of General Conditions of Natural Gas Supply and other subordinate legislation on installing hourly consumption gas meters) More complex roles and duties of Gas Market Operator and Gas Balancing Group Representative due to energy exchange between balancing groups establishment of gas stock market

26 Conclusion (3) Planned target dates: sending the Rolebook in adoption procedure (all expert and public hearings 15 th Jul 2008 the Rolebook implementation 1 th Jan 2009 Real charge for the cost of balancing energy 1 th Jun 2009 (1 th Jan 2010) Nomionations on hourly basis 1 th Jan 2012

27 THANK YOU FOR YOUR ATTENTION!