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

Code Modification Forum Clayton Hotel, Cork Wednesday, 6 March 2018

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. Intra-day Nomination Patterns and Profiles / Cod Mod Proposal A086-Incentives for Intra-day Balancing 6. Code Modification Proposal A089 – Proposal to return to pre-A074 Second Tier Imbalance Multipliers 7. Code Modification Proposal A087- Implementing a new framework for Suppliers to contract their payment channels for PPM customers 8. Code Modification Proposal A088 – Implementing a Capacity Conversion Service for Shippers holding mismatched Unbundled Capacity on one side of IP 2

Agenda (2 of 3) 9. Code Modification Proposal A090- Proposed new Invoice Dispute Resolution Procedure 10. Code Modification Proposal A091-Modification of oxygen content limits for Renewable Natural Gas (RNG) injected from RNG Entry Points 11. Biogas Update 12. GNI Trading Platform Business Rules /Timelines of review and consultation process on potential amendments to cashout prices and tolerances after commencement of trading on platform 13 Draft Trading Platform Transactions Agreement 14 Gas /Electricity Interaction interaction 15 VRF Tariffing Structure 16 Brexit and ROI Gas Market 17 Transparency Data Update 3

Agenda (page 3 of 3) 18. GNI Website Features for Shippers Presentation 19. W5 Survey- shipper/Supplier Update 20. AOB Next Code Modification Forum Meeting 4

1. Review of minutes from last meeting 5

2. Review of Action Items from last meeting 6

Code Modification Forum – Open Actions (Slide 1 of 2) ID Action Responsibility Status Priority Open High C530 Release revised Version 5.02 of the Code of Operations which reflects any outstanding Transporter Code Modifications approved by the CER subsequent to the 1 St October 2015 C538 Transporter to continue consultation process surrounding intra-day nomination patterns Transporter Open High and profiles Open Medium C539 Transporter to further provide timelines of next steps to further review and consult on Transporter potential amendments to cashout prices and tolerances, after finalisation of the tender process to secure a Trading Platform Service Provider. Industry to provide its views on potentially amending the 2 Nd tier imbalance multipliers Propose to C548 Industry High close (75% and 125%) previously introduced via Code mod A074 7

Code Modification Forum – Open Actions (Slide 2 of 2) ID Action Responsibility Status Priority C553 Industry to provide feedback on draft Bilateral Contract, Industry Open High C554 Industry to provide response(s) specifying any fundamental changes to the key principles of Industry Propose to High the Proposed Amended VRF Business Rules and specifying how much booked capacity would close be available C558 Transporter to proceed with the legal drafting of Code Modification Proposal A088 Transporter Propose to Medium close 8

Code Modification Forum 3. General Items Update 9

Code of Operations 5.02 • Version 5.02 will be released in due course, to reflect: ‒ Code Mods A071, A079, A080, A081, A082 A088 and A089 (all of which have been approved by the CRU). 10

Code Modification Forum 4. GNI Scheduled Maintenance Update 11

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 (Subject Duration Location Nature of Works Points entry/exit points to change) (days) Affected affected NOTHING TO REPORT 12

2017/ 2018 GNI Proposed Maintenance Days Maintenance Programme Gas Year 2017/2018 Entry Date Duration Commentary Points 1 day Corrib Not required 7th Feb 2018 1 day Inch Not required 1 day Corrib Not scoped yet. 9th May 2018 In-Line Inspection (ILI) run between Inch, Lochcarrig Lodge and Caherlag. Date to be finalised with pigging 1 day Inch contractor/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 13

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 14

Code Modification Forum 5. Intra-day Nomination Patterns and Profiles /Code Mod Proposal A086 – Incentives for intra-day Balancing 15

Outline of proposed GNI Modification A086 • Modification Raised by GNI to address concerns that the aggregate system imbalance intra-day is creating operational difficulties. • At times, there are large deviations between the prevailing exit nominations on the system and the prevailing entry nominations. GNI wish to introduce an incentive to encourage more alignment of entry and exit • PROPOSAL: At check points during the gas day (11:00, 17:00, 23:00) a shippers portfolio Nomination Imbalance position will be recorded. • A tolerance will be applied at each point • Worked Example: A shipper has 24 units of Aggregate Exit Nomination at 11:00. ‒ Deemed flow at Exit = (24 units * 6hrs/24hrs) = 6 units ‒ Total Entry Nomination = 4 units ‒ Apply a 10% tolerance: Adjusted Nomination Imbalance Position  Nomination Imbalance Position = (6 * 90 %) – 4 = 1.4 units ‒ The Adjusted Nomination Imbalance Position at the 3 time checks will be added ‒ The total for the day will be multiplied by [SAP] * [x%] 16 ‒ The amounts for each day in a month will be invoiced at month end.

Impact if Code Mod A086 was applied in November 2017 – February 2018 • There was a marked improvement in Shipper Nominations following discussions of the proposed modification at recent code mod forums. • However, during February late day nominations have resulted in almost hourly batches late in the gas day, causing operational difficulties once again for both GNI and National Grid. Financial Impact if Code Mod was applied November 2017 – January 2018 • Assume 10% Exit Tolerance and charging of 5% of SAP • November 2017 ‒ 8 shippers would have received charges ranging from € 365 to € 148k ‒ Total charges: € 334k ‒ 92% of charges attributable to 3 shippers • December 2017 ‒ 5 shippers would have received charges ranging from € 17 to € 124k ‒ Total charges: € 162k ‒ 96% of charges attributable to the same 3 shippers 17

Impact if Code Mod A086 was applied in November 2017 – February 2018 • January 2018 ‒ 5 shippers would have received charges ranging from € 18 to € 30k ‒ Total charges: € 67k ‒ 96% of charges attributable to 3 shippers 18

Code Modification Forum 6. Code modification Proposal A089- Proposal to return to pre-A074 Second Tier Imbalance Multipliers 19

Code Mod 89 – Second Tier Imbalance Prices • Recap of Code Modification: ‒ This modification was proposed by CRU and seeks to reinstate the second tier imbalance regime that was in operation pre code mod 74, which had set new multipliers of 75% and 125% respectively against the UK SAP in terms of pricing second tier imbalances • Industry Feedback: ‒ Supported by IOOA, Vermillion and Energia. GNI , Tynagh Energy and BG Energy advocated a more staggered return to previous multipliers, opposed by Aughinish . • Status of Code Modification: ‒ This code modification has been approved by the CRU and became effective on 01 March 2018 ‒ New second tier imbalance regime is as follows:  Shipper Long Gas – second tier imbalance will be a credit of:  The lower of [SMP Sell less Transportation Costs, SAP * 0.95 less Transportation Costs]  Shipper Short Gas – second tier imbalance will be a credit of:  The lower of [SMP Buy plus Transportation Costs, SAP * 1.05 plus Transportation Costs] 20

Code Modification Forum 7. Code Modification Proposal A087-,Implementing a new framework for Suppliers to contract their own payment channels for PPM customers 21

Code Mod 87 – Front Office PAYG Contracts • Recap of Code Modification: ‒ Raised by GNI, this modification seeks to revise the provisions in the Code of Operations related to Prepayment Metering so that Suppliers contract their own payment channels for gas prepayment meter customers rather than be required to be a party to a Front Office Services agreement agreed by the Transporter with third party service providers. • Status of Code Modification: ‒ This code modification is fundamentally a retail issue and it has been agreed that it should be further discussed at the retail (GMARG) forum 22

Code Modification Forum 8. Code Modification Proposal A088 – Implementing a Capacity Conversion Service for Shippers holding mismatched Unbundled Capacity on one side of IP 23

Code Mod 88 – Capacity Conversion Service • Recap of Code Modification: ‒ Raised by GNI, this modification was proposed to align with recent EU regulations on how shippers could convert unbundled capacity at an interconnection point to a bundled product • Industry Feedback: None • Status of Code Modification: ‒ This code modification has been approved by the CRU and legal drafting has been issued to the CRU for approval 24