Welcome to
Shippers’ Forum
Jeppe Danø, 9 March 2017
1
9 March 2017 14/05053-50 Shippers’ Forum 9 March 2017 – agenda/NSN
Sikkerhed i Energinet.dk
Safety at Energinet.dk
Sikkerhedsguide
Host Samlingssted
Meeting point
Hjertestarter
Defibrillator (AED)
Nødudgange
Emergency exit
Agenda
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9 March 2017 14/05053-50 Shippers’ Forum 9 March 2017 – agenda/NSN
12-13 Lunch and networking
13:00 Welcome
Jeppe Danø, Energinet.dk 13:10 Joint Balancing Zone
Camilla Mejdahl Mikkelsen, Energinet.dk
13:20 Status on the Supply Situation 2017 and without Tyra 2018-2021
Christian Meiniche Andersen, Energinet.dk, and Christian Rutherford, Energinet.dk
13:45 Open Season Status
Christian Rutherford, Energinet.dk, and Adam Marzecki, GAZ-SYSTEM S.A.
14:15 Coffee break and networking
14:45 Joint Billing in the Danish Gas Market
Clement Johan Ulrichsen, Danish Gas Distribution A/S 15:05 Tariff Network Code
Nina Synnest, Energinet.dk
15:15 End of Programme
Shipper survey now! Shipper event in June.
- Help PRISMA evaluate how they are doing, and what can be done better.
- This will allow them to better tailor the platform to fit shipper needs.
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https://corporate.prisma-capacity.eu/company-events/shipper-event-2017-brussels/
- Shippers will learn about new
developments within PRISMA, have the chance to share their experience, and meet the PRISMA team.
Internal points at the PRISMA platform?
Energinet.dk considers moving the internal points in the Danish gas system from Energinet.dk online to PRISMA
After consultation with market participants and DERA…
…and IT adjustments in back-end system
Deadline: 1 October 2017
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Development in allocation on GTF and EFT
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Energinet.dk’s analysis assumptions 2017
Klassificering:
Offentlig/Public 7
Workshop about Analysis Assumptions 2017
14 March 2017 10 am - 14 pm
Tonne Kjærs Vej 65, 7000 Fredericia
Sign up
Energinet.dk’s homepage\ABOUT US\Conferences
http://www.energinet.dk/EN/OM-OS/Konferencer/Sider/Konferencer-2015.aspx
Consultation process 17 March to 3 April 2017
Green Gas Forum 15 March 2017
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Themes
• New model for biomethane connection to grid
• Perspectives for new biomethane products and consumer segments
• Status on biomethane development
• Copenhagen vision of 100% biogas delivered to city gas grid
• Green gas from a storage perspective
Speakers from the Danish Energy Authority, HOFOR, HMN, Gas Storage Denmark and Energinet.dk
Participation free of charge. Approx. 80 participants.
Joint Balancing Zone
Camilla Mejdahl Mikkelsen
15/12743-16 Klassificering:
Offentlig/Public 9
15/12743-16 Klassificering:
Offentlig/Public 10
Joint project between Energinet.dk and Swedegas established
Pre-analysis Market
consultation
Result of analysis decision on go /
no go to continue
Further analysis, consultation with the market
and start of an implementation
phase Current
stage
Joint balancing zone
- Status
Exit zone
Denmark Exit zone Sweden
Ellund
Storage points
• Stenlille and Ll. Torup
• Skallen Virtual points
• ETF – Exchange Transfer Facility
• Joint bilateral point
Nybro Dragør
Exit zone
Denmark BNG entry DK
Exit zone Sweden
BNG entry Sweden
30 March 2017 from 13-15, Ballerup 31 March 2017 from 10-12, Gothenburg Sign up at jbz@energinet.dk or
jbz@swedegas.se
Workshop
January 2016 Q2 2017 2017
Shippers’ Forum
Status on supply situation 2017 and without Tyra 2018-2021
Christian Meiniche Andersen
Klassificering: 11
Status on supply situation 2017
Klassificering: 12
0 100.000.000 200.000.000 300.000.000 400.000.000 500.000.000 600.000.000 700.000.000 800.000.000 900.000.000 1.000.000.000
01 January 2017 01 February 2017 01 March 2017 01 April 2017 01 May 2017 01 June 2017 01 July 2017 01 August 2017 01 September 2017 01 October 2017 01 November 2017 01 December 2017
m3
Energinet.dk storage reservations (System operator storage, emergency and filling restrictions)
Maximum storage volume
Volume left in storage, actual
Volume left in storage, expected
Residual volume in storage facilities 2017
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Filled to be prepared for a cold winter ?
May be critical in a cold March/April and/or in a situation of reduced supply
Energinet.dk reservation can only be used when Emergency is declared and customers are interrupted
Supply situation without Tyra 2018-2021
Klassificering: 14
Memorandum August 2016
The main conclusion from the analysis is that Danish and Swedish consumers will continue to benefit from a robust supply situation if Tyra shuts down. If, at the same time, the majority of the Danish production in the North Sea is closed down for a number of years, the system becomes less flexible and more vulnerable to incidents occurring compared to today’s supply situation.
Energinet.dk intends to take various measures both in relation to the market and to infrastructure in order to secure maximum infrastructure capacity. The situation requires preparation and awareness on the part of Energinet.dk, the adjacent systems and the market players if the gas supply is to be secured.
An extremely long and hard winter with disruption of the supply sources will be
challenging. However, careful planning and focusing on the optimal use of the capacity in the system will mitigate the risk of supply failure.
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Supply situation without Tyra 2018-2021
New supply conditions
1. Less commercial storage volume available in 2019:
• 1 cavern less at Lille Torup
• Gas from Germany has a lower gross calorific value and compressibility
• Energinet.dk must reserve further Emergency storage to fullfil the EU N-1 regulation
2. No surplus capacity in the transmission system in Northern Germany
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Supply situation without Tyra 2018-2021
Ellund and storage supply
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0
50.000.000 100.000.000 150.000.000 200.000.000 250.000.000 300.000.000 350.000.000 400.000.000 450.000.000 500.000.000 550.000.000 600.000.000 650.000.000 700.000.000 750.000.000 800.000.000 850.000.000 900.000.000 950.000.000
0 2.000.000 4.000.000 6.000.000 8.000.000 10.000.000 12.000.000 14.000.000
01 April 2019 01 May 2019 01 June 2019 01 July 2019 01 August 2019 01 September… 01 October 2019 01 November… 01 December… 01 January 2020 01 February 2020 01 March 2020 01 April 2020 01 May 2020 01 June 2020 01 July 2020 01 August 2020 01 September… 01 October 2020 Expected storage volume in m3
Dailysupplyat Ellundin m3 /day
Daily supply Ellund cold year
Max. daily supply Ellund
Storage volume capacity
Expected Energinet.dk storage volume reservation Expected volume in storage facilities
Commerciel storage volume capacity used - Only Emergency volume left
Storage facilities must be filled to prepaire for a cold winter
Some flexibility in Ellund June- October and storage facilities can be filled quicker/slower. Max. volume is a limitation
Max. Supply in Ellund. No flexibility November – June and storage facilities used 100% for seasonal balancing
Supply situation without Tyra 2018-2021
Conclusion
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When Tyra closes, the system changes from being in a situation with the highest historical flexibility to a situation with the lowest possible
flexibility:
• Capacity in Germany must be used whenever capacity (firm and interruptible) is available
• Storage facilities must be filled 100% before winter to be prepared for cold winter (20-year incident)
Supply situation without Tyra 2018-2021
Tyra – Market
Upcoming workshop
Christian Rutherford
16/06448-39 Klassificering: Til Arbejdsbrug 19
Efficient use of storage
Our focus – gas enough both yearly and daily
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x %
y %
z % p %
Efficient use of Ellund
Need for close communication and
prospective new measures
Grouping of potential solutions
Instruments to improve the
market in normal operation
Instruments to improve the
market in challenged
operation
Incentives for market participants to
improve the market in
normal operation
Incentives for market participants to
improve the market in challenged
operation
16/06448-39 21
Normal operation Normal operation
Challenged operation
*
Challenged operation
* Instruments
to improve market mechanisms
Instruments to improve
market mechanisms
Incentives for market participants Incentives for
market participants
* Early Warning, Alert, Emergency
User Group on Tyra – Market development
When
• 30 March 2017 from 10 to 12 at our Ballerup offices
• (The workshop on a joint balancing zone between Sweden and Denmark is held in the afternoon from 12 to 15 the same day)
Purpose
• To collect a catalogue of prospective ideas and measures from the market
• To have more clarity as regards the role of Energinet.dk and the market for all participants
How
• We expect the market to come up with the ideas!
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Open Season 2017
Adam Marzecki, GAZ-SYSTEM S.A.
Christian Rutherford, Energinet.dk
Klassificering: 23
Current status
Market consultation completed: On the basis of the collected
feedback from the market consultations, both TSOs are working on the final OS 2017 documentation in close cooperation with the relevant NRAs.
Both TSOs intend to launch the Open Season 2017 procedure by the end of March 2017
The information on launching the Open Season 2017 will be announced by publication of the documents on the TSO’s websites
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Expected timeline for Open Season
Mar 17 End of
March 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17
Shippers’ Forum (today) Open Season Rules (publication of the final,
binding version of the Open Season Rules)
Start of Phase 1
Nov 17
Conditional Capacity Contracts Signing (early 4Q 17)
End of OS Order to
Proceed deadline
Phase 2 (binding bids)
Oct 17
Financial Test
The aim is still 1 October 2022
Main changes in the Open Season documents as the result of market consultation process
Increasing transparency
• Eg improvement of data in the Information Packages 1 and 2
• General improvement of clarity in the Open Season documents
• Information Paper, to explain in further detail specific questions from the consultation
• More details on Fast Track process
Increasing clarity on allocation methodology
• Eg more clarity on how capacity will be allocated in case of excess demand Reducing risk
• Eg increasing information for the Open Season participants during the implementation phase
• Increasing security in relation to the Open Season documentation
• Potential measures to reduce transportation cost risks
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www.energinet.dk/openseason2017
http://en.gaz-system.pl/strefa-klienta/konsultacje-z-
rynkiem/zakonczone-procedury/2017/open-season-baltic- pipe/
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Coffee break and networking We will meet again at 14:25
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Shippers’ Forum March 9 2017
Clement Johan Ulrichsen, Senior Manager Danish Gas Distribution
JOINT BILLING IN THE DANISH GAS MARKET
1.
Introduction to DGD
2.
Strategic Ambition
3.
Current Regulatory Framework
4.
Case Example: SEAS- NVE 5. Regulatory challenges 6. Operational process 7. Key message
Agenda
2
Introduction to DGD
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Danish Gas Distribution (DGD) was established on September 30th 2016 when Energinet.dk took over DONG Gas Distribution.
Approximately 122.000 customers in the southern part of Jutland and west Zealand receive gas distributed by
DGD.
DGD own 6.584 km of pipelines and 456 M/R and DR stations
Around 130 employees based in Søborg (Copenhagen), Stenlille and Skærbæk
Joint Billing - Strategic Ambition
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Aim for a billing model similar to the supplier centric model on the Danish electricity market
DGD sees great advantages in a Joint Billing model:
Joint Billing is a step towards a supplier centric model or similar terms
- Decrease entry barriers - Increase competition
- Fewer invoices to customers of independent - Competitive pricing
- Access to more flexible products
- Enable distribution to focus on core services and asset
operations
Market Customers Distribution
Companies Gas Suppliers
- Becomes the only face towards the customers (except on meter reading) - Competitive advantage
Current Regulatory and Legal Framework
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Background Executive Order no. 691 on Joint Billing from 01/07/2005:
Companies distributing Natural Gas shall upon request from natural gas suppliers, on reasonable and non-discriminating terms, give natural gas suppliers the opportunity to, on behalf of the natural gas distribution companies, invoice
payment for the use of the distribution network and charges facing natural gas customers with a contractual relationship to the natural gas distribution company on transport in the distribution network
Gas suppliers invoices customers on behalf of the distribution company. The customer remains a DGD customer and has a gas distribution contract with DGD.
A Joint Billing contractual basis has been prepared in close cooperation between the three regional distribution
companies based on the Executive Order no. 691 . Gas suppliers in Denmark can negotiate on this basis with the 3 gas distribution companies.
Current DERA approved method sets out payment terms for billing customers for gas distribution. DGD has put forward to DERA an application for broader payment terms when customers have a gas supplier using Joint Billing.
Case Example: SEAS- NVE
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DGD and SEAS- NVE have entered into an agreement on Joint Billing January 31st 2017.
The agreement is the first in the gas market on Joint Billing.
SEAS- NVE is a new gas supplier in the market and wanted to offer their customers fewer invoices.
The agreement and its terms form the basis for future agreements.
Main elements in the Agreement
7. PARTIES RIGHTS AND OBLIGATIONS 8. JOINT BILLING
8.1 Joint Billing Procedure 8.2 Billing Procedure 8.3 Liability
8.4 Payment
8.5 Over due payment 8.6 Disagreement on payment 8.7 Sample testing
8.8 Errors and inaccuracies 8.9 Data storing
9. GURANTEES 9.1 Credit rating
10. EXCHANGE OF INFORMATIONS AND LIABILITIES 11. REVISON OF THE AGREEMENT
12. TERMINATION
13. BREACH OF CONTRACT
Annex to the Agreement
Annex 5: Data Processing Agreement Annex 3: Billing Plan
Annex 4: Distribution company contact data Annex 1: Gas supplier agreement
Annex 2: Distribution Conditions Annex 6: Gas supplier’s Delivery Terms Annex 7: Credit Policy
Annex 8: Parent Company Guarantee Annex 9: Guarantee payable on demand
Regulatory challenges
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The gas supplier has to follow the distribution companies’ terms towards the customer
The supplier must follow the same requirements and regulatory information as a DGD invoice according to the law.
The gas supplier undergoes the dunning procedures according to the distribution companies conditions
The distribution company remains legal subject.
Uncertain regulations on exchange on personal data.
Due to the Supplier Obligation, the supplier cannot request a customer to be shut down, but can terminate the agreement.
Operational process
The gas supplier will be billed by DGD using same payment terms as the terms with end customers
The invoice to gas supplier will use the OUIUBL format. Invoices will be specified per customer.
Meter readings and technical installations remains a matter between customers and DGD.
All suppliers’ customers will be included in the Joint Billing agreement.
Observation points
Due to the OIOUBL format not having standardized all gas distribution invoice information, few data items may be placed differently on the OIOUBL invoice between the three distribution companies
DGD’s current IT setup is planned to change end 2017. Current IT setup handles Joint Billing on a one to one basis – one invoice, one payment
DGD’s new IT system is being developed for accumulated invoices – i.e. that the gas supplier pays a lump sum with customer invoices specified underneath. Final approval is pending.
DGD billing Gas supplier billing
• Format agreed with customer – OIO, “Betalingsservice”, paper invoices etc.
Customer payment DGD Customer payment gas supplier
Standard billing
Joint billing DGD billing
• OIOUBL
Gas supplier payment to
DGD
Gas supplier billing (including
distribution)
• Format agreed with customer
Customer payment for
gas supply and distribution
DGD invites Gas Suppliers supplying gas to customers in DGDs area to contact DGD for a further dialogue about opportunities for Joint Billing.
Clement Johan Ulrichsen Senior Manager
CLEJO@danskgasdistribution.dk +45 25 19 45 08
Margrethe Slørdahl Senior Business Advisor
MARSL@danskgasdistribution.dk +45 25 19 45 19
Key message
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Tariff Network Code
Klassificering: 29
9 March 2017
Nina Synnest (nsy@energinet.dk)
Agenda
• Time line
• Allocation methods
• Shipper Task Force
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Timeline
31
The application re- garding the future tariff methodology is expected to be submitted to DERA by the end of year 2017 (Oct./Nov.)
Comparison of cost allocation methods
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11,98 14,32
11,98
14,01 13,56
6,89
13,6414,86 13,6414,86 13,6414,86
0 5 10 15 20 25 30 35 40
Nybro Entry Ellund Entry BNG Entry
DKK/kWh/h/year Entry
Current CWD Uni. Ex‐ante Uni. Ex.‐post
15,85
11,98
15,85 9,7
12,66
37,61
16,3114,86 16,3114,86 16,3114,86
0 5 10 15 20 25 30 35 40
DK‐Zone Ellund Exit Dragør Exit
DKK/kWh/h/year Exit
Current CWD Uni. Ex‐ante Uni. Ex.‐post 37.61
Invitation to participate in a Shipper Task Force
• Shippers will be involved in the elaboration of a new tariff methodology for the Danish gas market
• Will report to the User Group
• Working group:
• Active participation is required
• Elaborate examples
• Discuss effects and incentives
• First meeting in April 2017
• Sign up by sending an e-mail to gastariffs@energinet.dk Max. 8 participants (one for each company)
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34 8 September 2016 14/05053-39 Shippers’ Forum 8 September 2016 – agenda/NSN
