Code Modification Forum Clayton Hotel, Cork Wednesday, 6 th - PowerPoint PPT Presentation

Code Modification Forum Clayton Hotel, Cork Wednesday, 6 th December 2017

Agenda (1 of 2) 1. Review of minutes from last meeting 2. Review of Action Items from last meeting 3. General Items Update 4. GNI Scheduled Maintenance Update 5. Code Modification Proposal ‒ A080 Option to Provide Monthly Settlement from Disbursements Accounts 6. Code Modification Proposal ‒ A083 Interruptible Capacity at Non IP Entry Points 7. Intra-day Nomination Patterns and Profiles 2

Agenda (2 of 2) 8. Balancing 9. Proposed Amended VRF rules 10. Gas Electricity Interaction 11. BrExit and ROI Gas Market 12. Transparency Data 13. EBI Trading Platform Activity Presentation 14 AOB Next Code Modification Forum Meeting 3

1. Review of minutes from last meeting 4

2. Review of Action Items from last meeting 5

Code Modification Forum – Open Actions (Slide 1 of 2) ID Action Responsibility Status Priority Transporter is to investigate adding further enhancements to the VRF product: 1. Notification if additional VRF capacity available. C483 Transporter Open High 2. Within-day auctions 3. Interruption time-stamping Release revision Version 5.02 of the Code of Operations which reflects any outstanding C530 Transporter Open High Code Modifications approved by the CRU subsequent to the 1st of October 2015 Transporter to consult with each shipper about issues surrounding their nomination patterns and profiles. Propose to C538 Transporter High close Transporter to provide an overview on the outcomes of such industry consultation at the August CMF Meeting. Transporter to further provide timelines of next steps to further review and consult on C539 potential amendments to cashout prices and tolerances, after finalisation of the tender Transporter Open Medium process to secure a Trading Platform Service Provider. 6

Code Modification Forum – Open Actions (Slide 2 of 2) ID Action Responsibility Status Priority Upstream Operator(s) asked to look into Entry Point Procedures and contractual Upstream Propose to C543 arrangements at domestic entry points, and revert back to the Regulator/CMF High Operator(s) close regarding same C551 Transporter to revert back with a final decision re whether there is a requirement for Propose to Transporter High close Financial Security for Trading Platform transactions C552 Transporter to circulate a draft Bilateral Contract for industry consultation Transporter High Open C553 Industry to provide feedback on draft Bilateral Contract, once circulated Industry Open High C554 Industry to provide feedback on the Proposed Amended VRF Business Rules and Propose to Industry High associated illustrative Model circulated Close C555 Transporter to circulate an overview of Day-ahead Forward Flow Nominations at the Transporter Open Medium Moffat IP in recent months 7

Code Modification Forum 3. General Items Update 8

Code of Operations 5.02 • Version 5.02 will be released in due course, to reflect: ‒ Code Mods A071, A079, A080, A081 and A082 (all of which have been approved by the CRU). 9

Code Modification Forum 4. GNI Scheduled Maintenance Update 10

Network Maintenance Update 1. Upstream Operator Maintenance GNI have been advised of the following scheduled Maintenance Upstream of Entry Points: Entry/Exit Impact on flows at Planned Timings Duration Location Nature of Works Points entry/exit points (Subject to change) (days) Affected affected Nothing to Report 11

2017/ 2018 GNI Proposed Maintenance Days Maintenance Programme Gas Year 2017/2018 Entry Date Duration Commentary Points 8 th November Planned installation of new UPS at Midleton deferred until February due to delay in acquiring 1 day Inch materials 1 day Corrib Not scoped yet. 7th Feb 2018 1 day Inch ILI run between Inch, Lochcarrig Lodge and Caherlag. Date to be finalised with the pigging contractor. 1 day Corrib Not scoped yet. 9th May 2018 1 day Inch Odorant tank refill at Inch. Zero flow whilst this takes place. 1 day Corrib Fuel gas skid connection at Cappagh South. May not affect flow 4th Jul 2018 1 day Inch Not scoped yet 1 day Corrib Not scoped yet 12th Sep 2018 1 day Inch Not scoped yet Note: Dates and maintenance programme may be subject to change 12

IT Maintenance Update Nature of Works Planned Timings (Subject to change) Duration (days) Systems Affected Nothing to report Please note the above works/timings/duration are subject to change 13

Code Modification Forum 5. Code Modification Proposal A080: ‘Option to Provide Monthly Settlement from Disbursements Account’ 14

Update on A080 • Commission Instruction circulated, approving A080 and directing GNI to proceed to legal drafting. • Legal Drafting has been finalised. • Transporter has established the Oracle and IT interface requirements to implement A080. • A080 has been implemented since 1 st October 2017.

Monthly Disbursement Account Regime • Disbursement Account credit notes will be paid on a month in arrears basis where there is no Shipper default on disbursement invoices on that month. All individual invoices to be paid within a month. Shippers should NOT offset credits against any invoices from within a month or from a previous month. If there is a default(s) in a month credit notes will issue but will not be paid. • Where any default continues for three months then, at that stage, within four months of the due date, the deficit will be smeared across the other Shippers and any credit balance is paid to the non- defaulting Shippers on a pro-rata basis after any credit due to a defaulting Shipper has been set against its deficit • At the end of the Gas Year the above process is carried out (even though it may be less than a three month period). 16

Monthly Disbursement Account Regime (cont.) • At the end of the Gas Year any Balancing Action Refund due to a defaulting shipper will be credited against its Disbursement Account Deficit • Any late payment of a Disbursement Invoice by a Shipper (after the monthly Disbursement Account Reconciliation) will be dealt with at the annual end-of-Gas Year Reconciliation) 17

Code Modification Forum 6. Code Modification Proposal A083: ‘Interruptible Capacity at Non IP Entry Points’ 18

A083: Update from Upstream Operator • An agreement currently exists between the Operator of the Bellanaboy Entry Point and a number of Shippers who have entitlement to be allocated gas at the Entry Point (“The Bellanaboy Administration Agreement”). ‒ Pursuant to this agreement the Operator acts as the Allocation Agent and advises the TSO of the amounts to be allocated to each Shipper • Pursuant to Part H (Operations), Section 3.8 (Administrative Procedures at an Entry Point), the parties to the Bellanaboy Administration Agreement propose as follows; 1. It has been agreed that the parties to the Bellanaboy Administration Agreement will write to GNI requesting that only the parties to that agreement shall be entitled to book Entry Capacity at the Point 2. GNI to ensure that this request is given effect to within GTMS by only assigning Bookable Contracts to the parties. 3 It will be the responsibility of parties to inform GNI of any changes to the Shippers entitled to book Entry Capacity at the point. 4 This new requirement shall come into effect on a date that GNI notifies to the parties following receipt of the instructing letter. 19 •

Overview of Status of Active Code Modifications Code Description of Code Modification Current Status Mod No. Legal Drafting is currently being finalised (But Option to Provide Monthly Settlement from A080 provisions of this code modification are already Disbursements Account put into effect) 20

Code Modification Forum 7. Intra-day Nomination Patterns and Profiles 21

GNI Proposed Code Modification • Despite continued engagement with Shippers to encourage more timely with-in day nominations the pattern of significant upward Entry Nominations at Moffat late in the gas day is persisting • GNI will shortly raise a Code Modification Proposal to incentivise shippers to at least nominate their Metered/Deemed Exit flows at particular points during a gas day. • The reasons for raising this modification are: 1. Continued operational stress on the system, compressors • Reduction in flows having significant impact on operation of compressor stations in Scotland. • Compressor stations designed to accommodate steady flows and not a ramping up and down pattern of operation (such as batching). • High flow periods are during the night when stations are generally unmanned. • Stop-start nature of operation leading to additional venting and increased emissions. 2. Concerns expressed by National Grid as to the erratic flows causing system issues and sub-optimal balancing actions on their system (see next slide) 3. Unnecessary transactional costs on the Disbursements account 4. Distortion of VRF product availability/offering 22

GNI Nominations Material from National Grid

Moffat Notifications Trend (01 Nov – 22 Nov) 20 18 16 14 EoD Notification, mcm/d 12 10 8 6 4 Typical National Grid Trading hours 20:00 2 – 00:00 0 Time of Day