17th IG Meeting
South Gas Regional Initiative
VI. MIBGAS
Madrid, 2nd Nov 2011
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VI. MIBGAS
VI.1 Proposal to achieve an integrated market
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VI.1 Proposal to achieve an integrated market
Regulators common position concerning the priorities for MIBGAS
development
 ERSE and CNE approved a common position document concerning the
priorities for MIBGAS development
 This common position document was sent to the Portuguese and Spanish
Governments on 27 September
 This common position document was triggered by the Memorandum of
Understanding signed by the European Commission, the European Central
Bank, the International Monetary Fund and the Portuguese Government , where
it is stated that “In the gas market, the Government will take measures to
accelerate the establishment of a functioning Iberian market for natural gas
(MIBGAS), in particular through regulatory convergence. Take up political
initiatives with Spanish authorities with the aim of eliminating the double tariff.
[Q3-2011]”.
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VI.1 Proposal to achieve an integrated market
Regulators common position concerning the priorities for MIBGAS
development
 The priorities identified are foreseen
Work Plan 2011-2014
in the South Gas Regional Initiative
 4 priorities were identified:
 CAM harmonization between Spain and Portugal
 Proposal for the harmonization of the access tariffs applied in the
interconnections between Spain and Portugal, towards the elimination of
pancaking effects
 Proposal for the harmonization of the balancing mechanisms between
Portugal and Spain
 Proposal of models for the integration of the Spanish and Portuguese gas
markets into an Iberian Natural Gas HUB
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VI.1 Proposal to achieve an integrated market
Regulators common position concerning the priorities for MIBGAS
development
 CAM harmonization between Spain and Portugal
 Approval by the Regulators (ERSE and CNE) of a common Capacity
Allocation Mechanism to be applied in the interconnections between
Portugal and Spain in a harmonized way by the TSO’s (REN and ENAGAS)
in line with the ACER framework guidelines. TSO’s have presented to the
regulatory authorities a CAM proposal for public consultation. (Conclusion:
January 2012)
 Development of a common Congestion Management Procedure to be
applied to the interconnections between Portugal and Spain. (Conclusion:
January 2013)
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VI.1 Proposal to achieve an integrated market
Regulators common position concerning the priorities for MIBGAS
development
 Proposal for the harmonization of the access tariffs applied to the
interconnections between Spain and Portugal, towards the elimination of
pancaking effects
 Presentation by the Regulatory Authorities (ERSE and CNE) of an action
proposal for the harmonization of the access tariffs in the interconnections
between Portugal and Spain that enhance and facilitate market
development avoiding tariffs pancaking effects on cross border flows.
Taking into account the dispositions foreseen in the directives these tariffs
and/or the methodologies for their calculation shall be approved and
implemented by the National Regulators. (Conclusion December 2011)
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VI.1 Proposal to achieve an integrated market
Regulators common position concerning the priorities for MIBGAS
development
 Proposal for the harmonization of the balancing mechanisms between
Portugal and Spain
 Presentation by the Regulatory Authorities (ERSE and CNE) of an action
proposal for the harmonization of the balancing mechanisms applied in the
natural gas infrastructures, on the available flexibility to suppliers in each
infrastructure, on the available balancing information and on the role of the
market, the users and the TSO’s on the resolution of the unbalance
situations. This proposal has to be in line with 3rd Package developments
and a roadmap should be also presented, in line with the other actions
necessary to the implementation of MIBGAS. (Conclusion: June 2013)
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VI.1 Proposal to achieve an integrated market
Regulators common position concerning the priorities for MIBGAS
development
 Proposal of models for the integration of the Spanish and Portuguese gas
markets in an Iberian Natural Gas HUB
 Presentation by the Regulatory Authorities (ERSE and CNE) of an analyses
of the possible models for the integration of the Spanish and Portuguese
gas markets in a common Iberian Natural Gas HUB (National Market Areas,
Regional Market Zones or Supra National Market), analyzing the
advantages and drawbacks, the regulatory harmonization requisites for its
implementation and a proposal roadmap for its entry into force.
(Conclusion: December 2013).
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VI. MIBGAS
VI.2 Update of the ERSE-CNE study on cross
border tariffs between Portugal and Spain
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VI.2 Update of the ERSE-CNE study on cross
border tariffs between Portugal and Spain
Assessment of case studies based on the supply of a
CCGT/industrial cons. from a MIBGAS entry point (LNG
terminal/interconnection).
For each case study:
•
•
•
Entry costs into the transmission network are assessed as well as
regasification costs
Transmission costs include one country or two countries depending on the
origin and destiny of the supply
Costs for using underground storage or for balancing purposes are not
considered
Coherence check with the Target Model and the FGs under
discussion
•
Discussion on CBT target scenario and consultation on interim steps
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VI.2 Update of the ERSE-CNE study on cross
border tariffs between Portugal and Spain
Next steps
1. Completing the study and submission to public
consultation
2. Stakeholders will be asked to identify most needed
developments to cross border transit tariffs
3. NRAs will issue a proposal on short term measures
to foster market integration through cross border
tariff harmonization
4. Long term European target model for market
integration will provide guidance for short term
developments
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