EU Gas Balancing Code – Nomination Update [Revised to reflect action TX1002]
Action TX1002: EU Balancing Code/Nominations: Provide an overview of what areas/decisions National Grid has autonomy over, and those that must be agreed with other parties.
Nomination Process at IPs
2
Balancing Code Defines:
1.Nomination Deadline
2.Nomination Confirmation Deadline
3.Renomination Process Timings
NG Impact Assessment [May 2013]Impacts Action
Major • New Nomination procedure at Interconnection Points (IPs) is a significant impact for GB
• Nomination related procedures contained in Gas Balancing, CAM, CMP and Interoperability Codes
• NTS have been investigating the interactions between these codes
• A number of policy/implementation issues have been analysed and our initial view on them has been defined
• Where possible consistency with the GB regime [non IPs] has been maintained
• NG NTS is happy to discuss any of these issues in further detail
• The end to end process/system needs to be mapped• Nomination process and policy views to also be discussed
with Adjacent TSOs. No code requirement to conduct a specific industry consultation on EU Nominations rules.
Nomination Policy – NG Current View
Nominations can be submitted from D-30 as per the UNC (the EU Balancing Code is silent on this point) [Application TBC with adjacent TSOs]
National Grid will not be offering a Pre-nomination cycle [TSOs may agree to offer]
Over-nomination requests for within-day interruptible capacity will not be offered: [TSO may reject nom if allocated capacity is exceeded and/or may treat over-nom as a request for interruptible capacity]
The GB regime will continue whereby Nominated gas quantities will not be validated by National Grid against any prevailing Entry or Exit Capacity Entitlement except in the case of an Exceptional Event
Any quantities of gas allocated to NTS Users in excess of Entry or Exit Capacity Entitlement will accrue Overrun Charges
Nomination Policy – NG Current View (2)
A User holding both Bundled Capacity and Unbundled Capacity at an IP may submit separate Single Sided Nominations and Double Sided Nominations [CAM/Bal is only concept level – application TBC with adjacent TSOs]
A ‘Single Sided Nomination’ is a notice issued by a User to an Initiating Transporter, who forwards this to the Matching TSO
A ‘Double Sided Nomination’ is a notice issued by the User/s either side of an IP to their respective Transporters
National Grid intends to maintain the requirement for the provision of flow notifications from operators at NTS entry and exit points (i.e DFNs and OPNs) [TSO may require network users to provide further information]
Nomination Assumptions
Prior to the implementation of the Nomination rules, National Grid and the adjacent Transporter will agree (and specify within the IA):
Identity of Initiating Transporter and the Matching Transporter
The harmonised information contained within the data exchange for the matching process - ‘EDIGAS xml’ messages will be utilised
The agreed method to ensure that the Processed Quantities for the National Grid User and the User’s Counterparty are equal (which by default shall be the ‘Lesser Rule’)
The adjacent TSO will be; Interconnector UK (IUK), BBL & Gas Link (subject to outcome of two way/three way capacity bundling discussions)
Nomination Process Overview
Content of a Daily Nom
Units (kWh)
Shipper submits nom no later than 13:00 (latest nom will be
used)
D-1 13:00 D-1 13:00
Within 2 hrs
D-1 15:00
Revised Confirmed Quantity sent by TSO[s] in Confirmation Notice (before gas flow change comes
into effect)
On hour bar
Shippers may submit a renom
From D-1 15:00 to D 02:00
Renomprocess
Rejection Rules
It does not comply with requirement for content
Submitted by incorrect body
Results in negative flow rate
Capacity Allocation Exceeded for remaining hrs [only expected to be to be used in
Exceptional Events]
SHALL NOT REJECT (if nom inputs do not = nom outputs)
No later than 2 hrs
If nom or renom rejected TSO shall use Users last Confirmed Quantity
If no valid nom sent before deadline the TSOs default shall apply - zero
45 mins to calc and send Processed Quantity by Initiaiting
TSOMatching Process / Interop
45 mins to calc and send Confirmed Quantity by Matching
TSO
Confirmation Notice issued to Shipper no later than 15:00
Renom cycle starts at every hour bar (latest renom will be
used)
Nomination against bundled capacity may be submitted
via a single sided nomination
30 mins for Confirmation to Shippers
No later than 2 hrs
Renomination only
Nomination & renom
Exceeds Shippers allocated capacity [only expected to be used in Exceptional Events]
NOTE
In Exceptional Events NG may amend the gas quantity requested in nom/renom in
accordance with National Rules
Nomination against unbundled capacity shall be submitted via a double sided
nomination
Matching Process Principles Single sided Nom – Processed Quantity
= Confirmed QuantityDouble sided Nom – “Lesser rule” used
to determine Confirmed Quantity
Nominationprocess
Within 2 hrs
45 mins to calc and send Processed Quantity by Initiaiting
TSOMatching Process / Interop
45 mins to calc and send Confirmed Quantity by Matching
TSO
Matching Process Principles Single sided Renom – Processed
Quantity = Confirmed QuantityDouble sided renom – “Lesser rule”
used to determine Confirmed Quantity
Start
1
2
3
4
5
Example 1 – “Easy” match (Double Sided Nom)
National Grid Transmission Network Adjacent Transporter's Transmission Network
User A Charges20 Capacity, 18 Commodity, 0 Overrun
User B ChargesAs per Adjacent Transporter arrangements
Interconnection Point
User A Nomination18
User A NTS Exit Capacity Entitlement20 (Unbundled)
Confirmed Quantity (to User B)18
Confirmed Quantity (to User A)18
User B Nomination18
20 (Unbundled)
18Processed Quantity MATCH
User B Entry Capacity Entitlement
Processed Quantity 18
Example 2 – “Easy” match (Single Sided Nom)
National Grid Transmission Network Adjacent Transporter's Transmission Network(In this example, the Initiating Transporter) (In this example, the Matching Transporter)
Interconnection Point
User A Nomination User A Nomination (forwarded)18 18
User A NTS Exit Capacity Entitlement User A Entry Capacity Entitlement
20 Capacity, 18 Commodity, 0 Overrun As per Adjacent Transporter arrangements
Forwarded by National Grid
Confirmed Quantity (to User A) Confirmed Quantity (to User B)18 18
User A Charges User A Charges
20 (Bundled) 20 (Bundled)
Processed Quantity MATCH Processed Quantity 18 18
Example 3 – “Easy” match (Multiple Double Sided Nom)
National Grid Transmission Network Adjacent Transporter's Transmission Network
* one single Capacity Charge levied for 20 units, one single Commodity Charge levied for 20 units
15 Capacity*, 15 Commodity*, 0 Overrun As per Adjacent Transporter arrangements
Confirmed Quantity (to User A) Confirmed Quantity (to User C)15 15
User A Charges User C Charges
User A NTS Exit Capacity Entitlement User C Entry Capacity Entitlement20 (Unbundled) 15 (Unbundled)
Processed Quantity MATCH Processed Quantity 15 15
5 Capacity*, 5 Commodity*, 0 Overrun As per Adjacent Transporter arrangements
User A Nomination 2 User C Nomination15 15
Confirmed Quantity (to User A) Confirmed Quantity (to User B)5 5
User A Charges User B Charges
20 (Unbundled) 5 (Unbundled)
Processed Quantity MATCH Processed Quantity 5 5
User A NTS Exit Capacity Entitlement User B Entry Capacity Entitlement
Interconnection Point
User A Nomination 1 User B Nomination5 5
Example 4 – Lesser Rule (Double Sided Nom)
National Grid Transmission Network Adjacent Transporter's Transmission Network
Interconnection Point
User A Nomination User B Nomination18 15
User A NTS Exit Capacity Entitlement User B Entry Capacity Entitlement
Matching rule applied as specified
default 'Lesser in Interconnection Agreement
Confirmed Quantity (to User A) Confirmed Quantity (to User B)15 15
20 (Unbundled) 20 (Unbundled)
Processed Quantity NO MATCH Processed Quantity 18 15
Rule' used in this example.
User A Charges20 Capacity, 15 Commodity, 0 Overrun
User B ChargesAs per Adjacent Transporter arrangements
Example 5 – Overrun (Double Sided Nom)
National Grid Transmission Network Adjacent Transporter's Transmission Network
User A NTS Exit Capacity Entitlement User B Entry Capacity Entitlement
User A Charges20 Capacity, 25 Commodity, 5 Overrun
User B ChargesAs per Adjacent Transporter arrangements
20 (Unbundled) 25 (Unbundled)
Processed Quantity MATCH Processed Quantity 25 25
Confirmed Quantity (to User A) Confirmed Quantity (to User B)25 25
Interconnection Point
User A Nomination User B Nomination25 25