Code Modification Forum Ashling Hotel, Dublin Wednesday, 8 August - PowerPoint PPT Presentation

Code Modification Forum Ashling Hotel, Dublin Wednesday, 8 August 2018

Agenda (1 of 2) 1. Review of minutes from last meeting 2. Review of Action Items from last meeting 3. GNI Scheduled Maintenance Update – Operational /IT 4. Intra-day Nomination Patterns and Profiles / Cod Mod Proposal A086-Incentives for Intra-day Balancing 5. Code Modification Proposal A087- Implementing a new framework for Suppliers to contract their payment channels for PPM customers 6. Biogas update including review of 1) Code Modification Proposal A091- Modification of oxygen content levels for Renewable Natural Gas (RNG) injected from RNG Entry Points and, 2) Code Modification Proposal A093-RNG Outline Code Modification 2

Agenda (2 of 3) 7. Code Modification Proposal A095- Adjustment of Daily Shipper Imbalance Charges/ Code Modification Proposal A094 – Changes to Shipper Portfolio Tolerances – Industry Response to Questionnaire 8 . Gas /Electricity Interaction interaction 9. Security of Supply Regulation 2017/1938 . Art.14 – Information Exchange 10. Data Sharing Agreement 11. Brexit and ROI Gas Market 12. Transparency Data Update 13. Website Feature Update 14. Trading Platform Update- GNI Participation 15. 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 Open High C538 Transporter to continue consultation process surrounding intra-day nomination patterns and profiles C560 Transporter to draft and circulate and circulate to Industry worked examples on capacity Transporter Propose to High close charging C562 Transporter to furnish Questionnaire to CMF Mailing List with the Minutes of the CMF Transporter Propose to High close Meeting on 13 June in relation to proposed changes to the calculation of the cashout price regime/ retention of Tolerances C563 Transporter to furnish DM and LDM accuracy data in aggregate to the CMF Mailing List Transporter Propose to High close and to subsequently answer specific Shipper queries Propose to C564 Transporter to inform KEL, under their OBA, of the proposal to gradually remove the Inch Transporter High close Entry Point Tolerance Propose to C565 Transporter to organise a telco with the CRU and Industry to consider a Modification for Transporter Medium close the IBP 15 Terms C566 Transporter to circulate to the CMF Mailing List and upload unto its Website the Allowed Transporter Propose to High close Revenues and Tariffs for Distribution and Transmission for 2018/19 6

Code Modification Forum 3. GNI Scheduled Maintenance Update 7

Network Maintenance Update 1. Upstream Operator Maintenance GNI have been advised of the following scheduled Maintenance Upstream of Entry Points: Impact on flows at Planned Timings (Subject Duration Entry/Exit Points Location Nature of Works entry/exit points to change) (days) Affected affected Bellanaboy Bellanaboy Bridge Gas Maintenance 10/9/2018-14/9/2018 5 No Flows Entry Point Terminal 8

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 SCADA signal validation testing . Now postponed due to deferment of SEPIL transition date 31 May-1June In-Line Inspection (ILI) run between Inch, Lochcarrig Lodge and Caherlag. Date to be finalised with pigging 9 May 1 day Inch contractor/Odorant tank refill at Inch. Zero flow whilst this takes place. Fuel gas skid connection at Cappagh South. May not affect flow. Now postponed, was scheduled to tie-in with 1 day Corrib maintenance which is now deferred 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 9

2018/ 2019 Maintenance Days Maintenance Programme Gas Year 2018/2019 Date Duration Entry Points Commentary 8th November 2018 1 Inch Deferred in line inspection. Risk to flow during intelligent pigging run 7th March 2019 1 Bellanaboy Station testing, valve check and validations at Cappagh South. 9th May 2019 1 Inch Odourant injection system planned maintenance 4th Jul 2019 1 Moffat Station testing, valve checks and validations at Beattock and Brighouse Bay compressor station 12th Sep 2019 1 Bellanaboy ESD testing at the Corrib Terminal 10

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 11

Code Modification Forum 4. Intra-day Nomination Patterns and Profiles /Code Mod Proposal A086 – Incentives for intra-day Balancing 12

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%] 13 ‒ The amounts for each day in a month will be invoiced at month end.

Impact if Code Mod was applied in November 2017 – July 2018 • There was a marked improvement in Shipper Nominations following discussions of the proposed modification at recent code mod forums. The estimated monthly financial impact dropped from € 334k (November) to € 67k (January). • However, during Mid February to June late day nominations (attributable to 3 Shippers) has resulted in almost hourly batches late in the gas day, causing operational difficulties once again for both GNI and National Grid. • July has seen an improvement in the behaviour of these 3 Shippers 14

Impact if Code Mod was applied in November 2017 – July 2018 Intraday Imbalance Nov 2017 - July 2018 500000 JUNE, € 451,826.77 450000 400000 NOVEMBER, € 334,187.70 350000 NOVEMBER DECEMBER APRIL, € 264,125.36 300000 JANUARY MARCH, € 252,503.70 FEBRUARY 250000 MARCH APRIL MAY, € 185,562.38 200000 MAY DECEMBER, € 161,895.41 JULY, € 155,892.22 JUNE 150000 JULY FEBRUARY, € 115,850.34 100000 JANUARY, € 67,255.77 50000 0 NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY 15

Impact if Code Mod was applied in November 2017 – July 2018 • Assume 10% Exit Tolerance and charging of 5% of SAP November 2017 December 2017 • 8 shippers would have received charges ranging from € 365 to • 5 shippers would have received charges ranging from € 17 to € 148k € 124k • Total charges: € 334k • Total charges: € 162k • • 92% of charges attributable to 3 shippers 96% of charges attributable to the same 3 shippers • January 2018 February 2018 • 5 shippers would have received charges ranging from € 18 to • 7 shippers would have received charges ranging from € 30k € 15.20 to € 72k • Total charges: € 67k • Total charges: € 116k • • 96% of charges attributable to 3 shippers 93% of charges attributable to 3 shippers • March 2018 April 2018 • 6 Shippers would have received charges ranging from € 86 to • 5 Shippers would have received charges ranging from € 23k € 149k to € 114k • Total charges: € 252k • Total charges: € 264k 16 • • 96% of charges attributable to 3 shippers 91% of charges attributable to 4 shippers

Impact if Code Mod was applied in November 2017 – July 2018 May 2018 • 3 Shippers would have received charges ranging from € 30k to € 101k • Total charges: € 186k • Shipper May to June June to July 99% of charges attributable to 3 shippers Increase/ Decrease Increase/ Decrease 1 191% Increase 92% Decrease June 2018 • 3 Shippers would have received charges ranging from € 52k to € 295k • Total charges: € 452k 2 0% Increase 3% Decrease • 99% of charges attributable to same 3 shippers July 2018 3 229% Increase 26% Decrease • 3 Shippers would have received charges ranging from € 25k to € 73k • Total charges: € 156k • 98% of charges attributable to same 3 shippers 17

Code Modification Forum 5. Code Modification Proposal A087-,Implementing a new framework for Suppliers to contract their own payment channels for PPM customers 18