Natural gas transmission networks

SUMMARY OF:

Regulation (EC) No 715/2009 on conditions for access to the natural gas transmission networks

WHAT IS THE AIM OF THE REGULATION?

It lays down rules for access to:

natural gas transmission* networks;
gas storage; and
liquefied natural gas facilities.

These rules aim to counteract barriers to competition in the European Union’s (EU) market for natural gas and to ensure its smooth operation.

KEY POINTS

The regulation determines:

how tariffs (solely for access to networks) are set;
the services to be offered;
the allocation of capacity to gas transmission system operators (TSOs)*;
transparency requirements (such as rules on publishing how TSOs or relevant national authorities arrive at their tariffs and their tariff structure); and
balancing* rules and imbalance charges on the market.

Certification of transmission system operators

National regulatory authorities must notify the European Commission of decisions relating to certifying a TSO. The Commission has 2 months to deliver its opinion to the authority, which then adopts the final decision concerning the TSO’s certification. This decision and the Commission’s opinion are both published.

Certification of storage system operators

Amending Regulation (EU) 2022/1032 requires EU Member States’ authorities to certify all underground gas storage site operators. This aims to avoid the potential risks of external influence on critical storage infrastructures, which could jeopardise the security of the EU’s energy supply and other essential security interests. Any operator not obtaining this certification will have to give up ownership or control of gas storage facilities within the EU.

Creation of the European Network of Transmission System Operators for Gas

The gas TSOs had to submit, to the Commission and to the Agency for the Cooperation of Energy Regulators (ACER), the draft statutes for the European Network of Transmission System Operators for Gas (ENTSOG), a list of members and draft rules of procedure by 3 March 2011.

Network codes

The Commission must consult ACER and ENTSOG in order to establish an annual list of the priorities for developing sets of rules known as network codes. These codes are developed using a non-binding guideline submitted to the Commission by ACER. The codes relate in particular to:

capacity allocation and congestion-management* rules;
interoperability rules between TSOs;
balancing rules;
the transparency of rules;
harmonised transmission tariff structures.

ENTSOG’s tasks

ENTSOG is responsible for adopting:

common network operation tools;
a 10-year network development plan;
recommendations for coordinated technical cooperation between EU TSOs;
an annual work programme;
an annual report;
annual summer and winter supply outlooks.

Costs and tariffs

The regulatory authorities determine tariffs or methodologies for their calculation. Member States may take decisions relating to tariffs such as fixing auction arrangements.

Third-party access services

TSOs must offer their services in a non-discriminatory manner to all network users. Detailed allocation rules are established in the network code on capacity allocation mechanisms.
Liquefied natural gas and storage facility operators must also offer their services on a non-discriminatory basis and make them compatible with the use of interconnected gas transport networks. Member States may decide whether access to storage is to be regulated or negotiated.

Congestion management

All market participants must have access to maximum network capacity as well as to storage and LNG facilities.
TSOs must practise and publish transparent congestion-management procedures which ensure that cross-border exchanges in gas are on a non-discriminatory basis.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 3 March 2011. It repealed Regulation (EC) No 1775/2005 from 3 March 2011.

BACKGROUND

For further information, see:

Market legislation (European Commission)
European Network of Transmission System Operators for Gas – ENTSOG (ENTSOG).

KEY TERMS

Transmission. Transport of gas from production areas to end-consumers by underground pipelines.

Transmission system operator (TSO). A body that transports energy such as natural gas, either nationally or regionally, using fixed infrastructure.

Balancing. Making receipts and deliveries of gas into or withdrawals of gas from a company equal. Balancing may be accomplished daily, monthly or seasonally, with penalties generally assessed for excessive imbalance.

Congestion management. Congestion arises when the transmission system is not sufficient to transfer power according to market requirements. Congestion management ensures the use of the power available without violating the system constraints.

MAIN DOCUMENT

Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005 (OJ L 211, 14.8.2009, pp. 36–54).

Successive amendments to Implementing Regulation (EC) No 715/2009) have been incorporated in the original text. This consolidated version is of documentary value only.