ANNEX IU.K.GUIDELINES ON

1.Third-party access services concerning transmission system operatorsU.K.

1.Transmission system operators shall offer firm and interruptible services down to a minimum period of one day.U.K.

2.Harmonised transport contracts and common network codes shall be designed in a manner that facilitates trading and re-utilisation of capacity contracted by network users without hampering capacity release.U.K.

3.Transmission system operators shall develop network codes and harmonised contracts following proper consultation with network users.U.K.

4.Transmission system operators shall implement standardised nomination and re-nomination procedures. They shall develop information systems and electronic communication means to provide adequate data to network users and to simplify transactions, such as nominations, capacity contracting and transfer of capacity rights between network users.U.K.

5.Transmission system operators shall harmonise formalised request procedures and response times according to best industry practice with the aim of minimising response times. They shall provide for online screen-based capacity booking and confirmation systems and nomination and re-nomination procedures F1....U.K.

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6.Transmission system operators shall not separately charge network users for information requests and transactions associated with their transport contracts and which are carried out according to standard rules and procedures.U.K.

7.Information requests that require extraordinary or excessive expenses such as feasibility studies may be charged separately, provided the charges can be duly substantiated.U.K.

8.Transmission system operators shall cooperate with other transmission system operators [F2, and endeavour to cooperate with non-UK TSOs in connected member States and connected third countries, ] in coordinating the maintenance of their respective networks in order to minimise any disruption of transmission services to network users and transmission system operators in other areas and in order to ensure equal benefits with respect to security of supply including in relation to transit.U.K.

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9.Transmission system operators shall publish at least annually, by a predetermined deadline, all planned maintenance periods that might affect network users' rights from transport contracts and corresponding operational information with adequate advance notice. This shall include publishing on a prompt and non-discriminatory basis any changes to planned maintenance periods and notification of unplanned maintenance, as soon as that information becomes available to the transmission system operator. During maintenance periods, transmission system operators shall publish regularly updated information on the details of and expected duration and effect of the maintenance.U.K.

10.Transmission system operators shall maintain and make available to the competent authority upon request a daily log of the actual maintenance and flow disruptions that have occurred. Information shall also be made available on request to those affected by any disruption.U.K.

2.Principles of capacity-allocation mechanisms and congestion-management procedures concerning transmission system operators and their application in the event of contractual congestionU.K.

2.1.Principles of capacity-allocation mechanisms and congestion-management procedures concerning transmission system operatorsU.K.

1.Capacity-allocation mechanisms and congestion-management procedures shall facilitate the development of competition and liquid trading of capacity and shall be compatible with market mechanisms including spot markets and trading hubs. They shall be flexible and capable of adapting to evolving market circumstances.U.K.
2.Those mechanisms and procedures shall take into account the integrity of the system concerned as well as security of supply.U.K.
3.Those mechanisms and procedures shall neither hamper the entry of new market participants nor create undue barriers to market entry. They shall not prevent market participants, including new market entrants and companies with a small market share, from competing effectively.U.K.
4.Those mechanisms and procedures shall provide appropriate economic signals for efficient and maximum use of technical capacity and facilitate investment in new infrastructure.U.K.
5.Network users shall be advised about the type of circumstance that could affect the availability of contracted capacity. Information on interruption should reflect the level of information available to the transmission system operator.U.K.
6.Should difficulties in meeting contractual delivery obligations arise due to system integrity reasons, transmission system operators should notify network users and seek a non-discriminatory solution without delay.U.K.

Transmission system operators shall consult network users regarding procedures prior to their implementation and agree them with the [F3national] regulatory authority.

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[F42.2. Congestion management procedures in the event of contractual congestion U.K.

2.2.1. General Provisions U.K.
1.The provisions of point 2.2 shall apply to interconnection points between adjacent entry-exit systems, irrespective of whether they are physical or virtual, between [F5Great Britain or Northern Ireland and— U.K.

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(a)the other part of the United Kingdom or a connected member State; or

(b)if the national regulatory authority so directs, a connected third country,

in so far as the points are subject to booking procedures by users.]U.K.

F6...U.K.

2.F7...U.K.

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3.Any additional capacity made available through the application of one of the congestion-management procedures as provided for in points 2.2.2, 2.2.3, 2.2.4 and 2.2.5 shall be offered by the respective transmission system operator(s) in the regular allocation process.U.K.
4.F8...U.K.

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2.2.2. Capacity increase through oversubscription and buy-back scheme U.K.
1.Transmission system operators shall propose and, after approval by the national regulatory authority, implement an incentive-based oversubscription and buy-back scheme in order to offer additional capacity on a firm basis. Before implementation, the national regulatory authority shall consult with the national regulatory authorities of [F9connected countries or territories] and take account of the [F10those] authorities’ opinions. Additional capacity is defined as the firm capacity offered in addition to the technical capacity of an interconnection point calculated on the basis of Article 16(1) of this Regulation.U.K.

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2.The oversubscription and buy-back scheme shall provide transmission system operators with an incentive to make available additional capacity, taking account of the technical conditions, such as the calorific value, temperature and expected consumption, of the relevant entry-exit system and the capacities in adjacent networks. Transmission system operators shall apply a dynamic approach with regard to the recalculation of the technical or additional capacity of the entry-exit system.U.K.
3.The oversubscription and buy-back scheme shall be based on an incentive regime reflecting the risks of transmission system operators in offering additional capacity. The scheme shall be structured in such a way that revenues from selling additional capacity and costs arising from the buy-back scheme or measures pursuant to paragraph 6 are shared between the transmission system operators and the network users. [F11The national regulatory authority] shall decide on the distribution of revenues and costs between the transmission system operator and the network user.U.K.

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4.For the purpose of determining transmission system operators’ revenues, technical capacity, in particular surrendered capacity as well as, where relevant, capacity arising from the application of firm day-ahead use-it-or-lose-it and long term use-it-or-lose-it mechanisms, shall be considered to be allocated prior to any additional capacity.U.K.
5.In determining the additional capacity, the transmission system operator shall take into account statistical scenarios for the likely amount of physically unused capacity at any given time at interconnection points. It shall also take into account a risk profile for offering additional capacity which does not lead to excessive buy-back obligation. The oversubscription and buy-back scheme shall also estimate the likelihood and the costs of buying back capacity on the market and reflect this in the amount of additional capacity to be made available.U.K.
6.Where necessary to maintain system integrity, transmission system operators shall apply a market-based buy-back procedure in which network users can offer capacity. Network users shall be informed about the applicable buy-back procedure. The application of a buy-back procedure is without prejudice to the applicable emergency measures.U.K.
7.Transmission system operators shall, before applying a buy-back procedure, verify whether alternative technical and commercial measures can maintain system integrity in a more cost-efficient manner.U.K.
8.When proposing the oversubscription and buy-back scheme the transmission system operator shall provide all relevant data, estimates, and models to the national regulatory authority in order for the latter to assess the scheme. The transmission system operator shall regularly report to the national regulatory authority on the functioning of the scheme and, upon request of the national regulatory authority, provide all relevant data. The national regulatory authority may request the transmission system operator to revise the scheme.U.K.
2.2.3. Firm day-ahead use-it-or-lose-it mechanism U.K.
1. [F12The national regulatory authority] shall require transmission system operators to apply at least the rules laid down in paragraph 3 per network user at interconnection points with respect to altering the initial nomination if F13... at interconnection points demand exceeded offer, at the reserve price when auctions are used, in the course of capacity allocation procedures in [F14the most recent year for which the national regulatory authority has the relevant information] for products for use in either that year or in one of the subsequent two years, U.K.
(a)

for at least three firm capacity products with a duration of one month or

(b)

for at least two firm capacity products with a duration of one quarter or

(c)

for at least one firm capacity product with a duration of one year or more or

(d)

where no firm capacity product with a duration of one month or more has been offered.

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2.[F15If the national regulatory authority considers] that a situation as defined in paragraph 1 is unlikely to reoccur in the following three years, for example as a result of capacity becoming available from physical expansion of the network or termination of long-term contracts, the relevant [F16national regulatory authority] may decide to terminate the firm day-ahead use-it-or-lose-it mechanism.U.K.

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3.Firm renomination is permitted up to 90 % and down to 10 % of the contracted capacity by the network user at the interconnection point. However, if the nomination exceeds 80 % of the contracted capacity, half of the non-nominated volume may be renominated upwards. If the nomination does not exceed 20 % of the contracted capacity, half of the nominated volume may be renominated downwards. The application of this paragraph is without prejudice to the applicable emergency measures.U.K.
4.The original holder of the contracted capacity may renominate the restricted part of its contracted firm capacity on an interruptible basis.U.K.
5.Paragraph 3 shall not apply to network users F17... holding less than 10 % of the average technical capacity in the preceding year at the interconnection point. [F18For this purpose, any capacity which is held by a person controlled by a network user is to be treated as capacity held by that network user.]U.K.

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6.On interconnection points where a firm day-ahead use-it-or-lose-it mechanism in accordance with paragraph 3 is applied, an evaluation of the relationship with the oversubscription and buy-back scheme pursuant to point 2.2.2 shall be carried out by the national regulatory authority, which may result in a decision by the national regulatory authority not to apply the provisions of point 2.2.2 at those interconnection points. F19...U.K.

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7.[F20The] national regulatory authority may decide to implement a firm day-ahead use-it-or-lose-it mechanism pursuant to paragraph 3 on an interconnection point. Before adopting its decision, the national regulatory authority shall consult with the national regulatory authorities of [F21connected countries or territories]. In adopting its decision the national regulatory authority shall take account of [F22those] authorities’ opinions.U.K.

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2.2.4. Surrender of contracted capacity U.K.

Transmission system operators shall accept any surrender of firm capacity which is contracted by the network user at an interconnection point, with the exception of capacity products with a duration of a day and shorter. The network user shall retain its rights and obligations under the capacity contract until the capacity is reallocated by the transmission system operator and to the extent the capacity is not reallocated by the transmission system operator. Surrendered capacity shall be considered to be reallocated only after all the available capacity has been allocated. The transmission system operator shall notify the network user without delay of any reallocation of its surrendered capacity. Specific terms and conditions for surrendering capacity, in particular for cases where several network users surrender their capacity, shall be approved by the national regulatory authority.

2.2.5. Long-term use-it-or-lose-it mechanism U.K.
1. [F23The national regulatory authority] shall require transmission system operators to partially or fully withdraw systematically underutilised contracted capacity on an interconnection point by a network user where that user has not sold or offered under reasonable conditions its unused capacity and where other network users request firm capacity. Contracted capacity is considered to be systematically underutilised in particular if: U.K.
(a)

the network user uses less than on average 80 % of its contracted capacity both from 1 April until 30 September and from 1 October until 31 March with an effective contract duration of more than one year for which no proper justification could be provided; or

(b)

the network user systematically nominates close to 100 % of its contracted capacity and renominates downwards with a view to circumventing the rules laid down in point 2.2.3(3).

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2.The application of a firm day-ahead use-it-or-lose-it mechanism shall not be regarded as justification to prevent the application of paragraph 1.U.K.
3.Withdrawal shall result in the network user losing its contracted capacity partially or completely for a given period or for the remaining effective contractual term. The network user shall retain its rights and obligations under the capacity contract until the capacity is reallocated by the transmission system operator and to the extent the capacity is not reallocated by the transmission system operator.U.K.
4.Transmission system operators shall regularly provide [F24the national regulatory authority] with all the data necessary to monitor the extent to which contracted capacities with effective contract duration of more than one year or recurring quarters covering at least two years are used.]U.K.

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[F253. Definition of the technical information necessary for network users to gain effective access to the system, the definition of all relevant points for transparency requirements and the information to be published at all relevant points and the time schedule according to which this information shall be published U.K.

3.1. Definition of the technical information necessary for network users to gain effective access to the system U.K.

3.1.1. Form of publication U.K.
(1) Transmission system operators (TSOs) shall provide all information referred to under paragraph 3.1.2 and paragraph 3.3(1) to 3.3(5) in the following manner: U.K.
(a)

on a website accessible to the public, free of charge and without any need to register or otherwise sign on with the transmission system operator;

(b)

on a regular/rolling basis; the frequency shall be according to the changes that take place and the duration of the service;

(c)

in a user-friendly manner;

(d)

in a clear, quantifiable, easily accessible way and on a non-discriminatory basis;

(e)

[F4in a downloadable format that has been agreed between transmission system operators and the national regulatory [F26authority]F27... and that allows for quantitative analyses;]

(f)

in consistent units, in particular kWh (with a combustion reference temperature of 298,15 K) shall be the unit for energy content and m 3 (at 273,15 K and 1,01325 bar) shall be the unit for volume. The constant conversion factor to energy content shall be provided. In addition to the format above, publication in other units is also possible;

(g)

F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(h)

F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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(2)Transmission system operators shall provide details on actual changes to all information referred to under paragraph 3.1.2 and paragraph 3.3(1) to 3.3(5) in a timely manner as soon as available to them.U.K.
3.1.2. Content of publication U.K.

Transmission system operators shall publish at least the following information about their systems and services:

(a)

a detailed and comprehensive description of the different services offered and their charges;

(b)

the different types of transportation contracts available for these services;

(c)

the network code and/or the standard conditions outlining the rights and responsibilities of all network users including:

1.

harmonised transportation contracts and other relevant documents;

2.

if relevant for access to the system, for all relevant points as defined in paragraph 3.2 of this Annex, a specification of relevant gas quality parameters, including at least the gross calorific value and the Wobbe index, and the liability or costs of conversion for network users in case gas is outside these specifications;

3.

if relevant for access to the system, for all relevant points information on pressure requirements;

4.

the procedure in the event of an interruption of interruptible capacity, including, where applicable, the timing, extent, and ranking of individual interruptions (for example pro-rata or first-come-last-interrupted);

(d)

the harmonised procedures applied when using the transmission system, including the definition of key terms;

(e)

provisions on capacity allocation, congestion management and anti-hoarding and reutilisation procedures;

(f)

the rules applicable for capacity trade on the secondary market vis-à-vis the transmission system operator;

(g)

rules on balancing and methodology for the calculation of imbalance charges;

(h)

if applicable, the flexibility and tolerance levels included in transportation and other services without separate charge, as well as any flexibility offered in addition to this and the corresponding charges;

(i)

a detailed description of the gas system of the transmission system operator and its relevant points of interconnection as defined in paragraph 3.2 of this Annex as well as the names of the operators of the interconnected systems or facilities;

(j)

the rules applicable for connection to the system operated by the transmission system operator;

(k)

information on emergency mechanisms, as far as it is the responsibility of the transmission system operator, such as measures that can lead to the disconnection of customers groups and other general liability rules that apply to the transmission system operator;

(l)

procedures agreed upon by transmission system operators at interconnection points, of relevance for access of network users to the transmission systems concerned, relating to interoperability of the network, agreed procedures on nomination and matching procedures and other agreed procedures that set out provisions in relation to gas flow allocations and balancing, including the methods used;

(m)

transmission system operators shall publish a detailed and comprehensive description of the methodology and process, including information on the parameters employed and the key assumptions, used to calculate the technical capacity.

3.2. Definition of all relevant points for transparency requirements U.K.

(1) Relevant points shall include at least: U.K.
(a)

all entry and exit points to and from a transmission network operated by a transmission system operator, with the exception of exit points connected to a single final customer, and with the exception of entry points linked directly to a production facility of a single producer that is located within [F29Great Britain or Northern Ireland];

(b)

all entry and exit points connecting balancing zones of transmission system operators;

(c)

all points connecting the network of a transmission system operator with an LNG terminal, physical gas hubs, storage and production facilities, unless these production facilities are exempted under (a);

(d)

all points connecting the network of a given transmission system operator to infrastructure necessary for providing ancillary services F30....

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(2)Information for single final customers and for production facilities, that is excluded from the definition of relevant points as described under 3.2(1)(a), shall be published in aggregate format, at least per balancing zone. The aggregation of single final customers and of production facilities, excluded from the definition of relevant points as described under 3.2(1)(a), shall for the application of this Annex be considered as one relevant point.U.K.
(3)Where points between two or more transmission operators are managed solely by the transmission operators concerned, with no contractual or operational involvement of system users whatsoever, or where points connect a transmission system to a distribution system and there is no contractual congestion at these points, transmission system operators shall be exempted for these points from the obligation to publish the requirements under paragraph 3.3 of this Annex. The national regulatory authority may require the transmission system operators to publish the requirements under paragraph 3.3 of this Annex for groups or all of the exempted points. In such case, the information, if available to the TSO, shall be published in an aggregated form at a meaningful level, at least per balancing zone. This aggregation of these points shall for the application of this annex be considered as one relevant point.U.K.

3.3. Information to be published at all relevant points and the time schedule according to which this information should be published U.K.

(1) At all relevant points, transmission system operators shall publish the information as listed in paragraphs [F31(a) to (k)], for all services and ancillary services provided (in particular information on blending, ballasting and conversion). This information shall be published on a numerical basis, in hourly or daily periods, equal to the smallest reference period for capacity booking and (re-)nomination and the smallest settlement period for which imbalance charges are calculated. If the smallest reference period is different from a daily period, information as listed in paragraphs [F31(a) to (k)] shall be made available also for the daily period. This information and updates shall be published as soon as available to the system operator (‘near real time’). U.K.
(a)

the technical capacity for flows in both directions;

(b)

the total contracted firm and interruptible capacity in both directions;

(c)

the nominations and re-nominations in both directions;

(d)

the available firm and interruptible capacity in both directions;

(e)

actual physical flows;

(f)

planned and actual interruption of interruptible capacity;

(g)

planned and unplanned interruptions to firm services as well as the information on restoration of the firm services (in particular, maintenance of the system and the likely duration of any interruption due to maintenance). Planned interruptions shall be published at least 42 days in advance[F4;]

(h)

[F32occurrence of unsuccessful, legally valid requests for firm capacity products with a duration of one month or longer including the number and volume of the unsuccessful requests; and

(i)

in the case of auctions, where and when firm capacity products with a duration of one month or longer have cleared at prices higher than the reserve price;

(j)

where and when no firm capacity product with a duration of one month or longer has been offered in the regular allocation process;

(k)

total capacity made available through the application of the congestion-management procedures laid down in points 2.2.2, 2.2.3, 2.2.4 and 2.2.5 per applied congestion-management procedure;

(l)

F33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

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[F34(2)At all relevant points, the information under paragraph 3.3(1)(a), (b) and (d) shall be published for a period at least 24 months ahead.]U.K.

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(3)At all relevant points, transmission system operators shall publish historical information on the requirements of paragraph 3.3(1)(a) to (g) for the past 5 years on a rolling basis.U.K.
(4)Transmission system operators shall publish measured values of the gross calorific value or the Wobbe index at all relevant points, on a daily basis. Preliminary figures shall be published at the latest 3 days following the respective gas day. Final figures shall be published within 3 months after the end of the respective month.U.K.
(5)For all relevant points, transmission system operators shall publish available capacities, booked and technical capacities, on an annual basis over all years where capacity is contracted plus 1 year, and at least for the next 10 years. This information shall be updated at least every month or more frequently, if new information becomes available. The publication shall reflect the period for which capacity is offered to the market.U.K.

3.4. Information to be published regarding the transmission system and the time schedule according to which this information should be published U.K.

(1) Transmission system operators shall ensure the publication on a daily basis and updated every day the aggregated amounts of capacities offered, and contracted on the secondary market (i.e. sold from one network user to another network user), where the information is available to the TSO. This information shall include the following specifications: U.K.
(a)

interconnection point where the capacity is sold;

(b)

type of capacity, i.e. entry, exit, firm, interruptible;

(c)

quantity and duration of the capacity usage rights;

(d)

type of sale, e.g. transfer or assignment;

(e)

the total number of trades/transfers;

(f)

any other conditions known to the transmission system operator as mentioned in 3.3.

In so far such information is provided by a third party, transmission system operators shall be exempted from this provision.

(2) Transmission system operators shall publish harmonised conditions under which capacity transactions (e.g. transfers and assignments) will be accepted by them. These conditions must at least include: U.K.
(a)

a description of standardised products which can be sold on the secondary market;

(b)

lead time for the implementation/acceptation/registration of secondary trades. In case of delays the reasons have to be published;

(c)

the notification to the transmission system operator by the seller or the third party as referred to under 3.4(1) about name of seller and buyer and capacity specifications as outlined in 3.4(1).

In so far such information is provided by a third party, transmission system operators shall be exempted from this provision.

(3)Regarding the balancing service of its system, each transmission system operator shall provide to each network user, for each balancing period, its specific preliminary imbalance volumes and cost data per individual network user, at the latest 1 month after the end of the balancing period. Final data of customers supplied according to standardised load profiles may be provided up to 14 months later. In so far such information is provided by a third party, transmission system operators shall be exempted from this provision. The provision of this information shall respect confidentiality of commercially sensitive information.U.K.
(4)Where flexibility services, other than tolerances, are offered for third party access, transmission system operators shall publish daily forecasts on a day-ahead basis of the maximum amount of flexibility, the booked level of flexibility and the availability of flexibility for the market for the next gas day. The transmission system operator shall also publish ex-post information on the aggregate utilisation of every flexibility service at the end of each gas day. If the national regulatory authority is satisfied that such information could give room to potential abuse by network users, it may decide to exempt the transmission system operator from this obligation.U.K.
(5)Transmission system operators shall publish, per balancing zone, the amount of gas in the transmission system at the start of each gas day and the forecast of the amount of gas in the transmission system at the end of each gas day. The forecast amount of gas for the end of the gas day shall be updated on an hourly basis throughout the gas day. If imbalance charges are calculated on an hourly basis, the transmission system operator shall publish the amount of gas in the transmission system on an hourly basis. Alternatively, transmission system operators shall publish, per balancing zone, the aggregate imbalance position of all users at the start of each balancing period and the forecast of the aggregated imbalance position of all users at the end of each gas day. If the national regulatory authority is satisfied that such information could give room to potential abuse by network users, it may decide to exempt the transmission system operator from this obligation.U.K.
(6)Transmission system operators shall provide user-friendly instruments for calculating tariffs.U.K.
(7)Transmission system operators shall keep at the disposal of the relevant national authorities, for at least 5 years, effective records of all capacity contracts and all other relevant information in relation to calculating and providing access to available capacities, in particular individual nominations and interruptions. Transmission system operators must keep documentation of all relevant information under point 3.3(4) and (5) for at least 5 years and make them available to the [F35national] regulatory authority upon request. Both parties shall respect commercial confidentiality.]U.K.

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ANNEX IIU.K.CORRELATION TABLE

Regulation (EC) No 1775/2005This Regulation
Article 1Article 1
Article 2Article 2
F36. . . F36. .
F36. . . F36. .
F36. . . F36. .
—Article 6
—Article 7
F36. . . F36. .
F36. . . F36. .
F36. . . F36. . .
F36. . . F36. . .
F36. . . F36. . .
Article 3Article 13
Article 4Article 14
—Article 15
Article 5Article 16
—Article 17
Article 6Article 18
—Article 19
—Article 20
Article 7Article 21
Article 8Article 22
F36. . . F36. . .
Article 10Article 24
F36. . . F36. . .
F36. . . F36. . .
Article 13Article 27
F36. . . F36. . .
F36. . . F36. . .
Article 16Article 30
—Article 31
Article 17Article 32
AnnexAnnex I

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