Network Code
Regulatory framework
REGULATORY FRAMEWORK
1)
THE REGULATION OF THE GAS MARKET IN EUROPE ............................................................... 2
2)
THE LAW DECREE N°164/00 .................................................................................................................. 2
3)
THE AUTHORITY’S RESOLUTIONTIONS RELEVANT TO THE NETWORK CODE .............. 2
3.1)
3.2)
4)
RESOLUTION N°120/01 ......................................................................................................................... 3
RESOLUTION N°137/02 ......................................................................................................................... 3
THE REGULATORY FRAMEWORK...................................................................................................... 3
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Network Code
1)
Regulatory framework
THE REGULATION OF THE GAS MARKET IN EUROPE
The regulation of the gas market within the EU started with the Directive n°98/30/CE
by the European Parliament and Committee issued June 22, 1998 (“Gas Directive”),
covering the internal gas market (transportation, distribution, supply and storage).
This rule started a process of liberalisation of the sector with the aim of creating a
single European gas market, incorporating equality of treatment and nondiscriminatory access for all users of the system.
This Gas Directive has been implemented in Italy via Law 17 May 1999, n°144 (“Legge
Delega”) and the Law Decree 23 May 2000, n° 164 (“Letta Decree”). The Letta Decree
contain rules for the internal gas market, in line with the Legge Delega.
2)
THE LAW DECREE N°164/00
The Law Decree introduced rules defining the timing and methods for the
liberalisation of the Italian gas market in line with the Gas Directive, identifying and
defining the roles of the different segments of the natural gas “chain” such as import,
production, export, transportation and dispatching, storage, distribution and sale.
In respect of transportation activities, the Law Decree foresees (among other things):
 regulation of transportation and dispatching activities, in order to offer such
services on equitable terms and at regulated tariffs;
 corporate separation of transportation/dispatching activities and all other activities
of the gas sector. The exception to this is storage, which will, however, be
separated from transportation/dispatching in accounting and management terms;
 the customer eligibility principle, with the associated consumption thresholds and
the extension, from 1 January 2003, of this principle to all Final Customers;
 definition, by a Resolutiontion (“Resolution”) from the Authority of electricity and
gas, of the “criteria which assure that all network users have access on equitable
terms, maximum impartiality of transportation/dispatching activities in normal
conditions and the obligations of parties which carry out gas transportation/
dispatching activities”;
 development by gas transporters of a Network Code – within three months from
the publication of the Resolution by the Authority. The draft Network Code should
then be sent to the Authority, who will check its consistency with the Resolution after a further three month period, should no modifications be required by the
Authority, the Network Code is assumed approved.
3)
THE AUTHORITY’S RESOLUTIONTIONS RELEVANT TO THE NETWORK
CODE
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Network Code
Regulatory framework
3.1) Resolution n°120/01
In line with Article 23 of the Law Decree, the Authority has defined – in Resolution
n°120/01 – the criteria to determine gas transportation tariffs. This document also
included urgent provisions concerning transportation capacity allocation at the RN
Entry and Exit points and the Redelivery Points, together with the balancing charges to
be applied until the provisions described in Art.24.5 of the Law Decree are issued.
3.2) Resolution n°137/02
To give effect to Article 24.5 of the Law Decree, the Authority published Resolution
n°137/02, which defines “the framework for the definition by transporters of
transportation access conditions, within the criteria set by the Authority”, thereby
allowing the verification of the draft Network Code against the Authority’s criteria.
The Network Code is the set of rules, which must be transparent and nondiscriminatory, governing access to the transportation system. It applies to all the gas
transported and includes reference to all parties (Shippers) with whom the
transportation company signs the Transportation Contract (“Contratto di Trasporto”).
Further, the Network Code specifies the rules for transportation capacity booking and
the related capacity transactions, and defines the framework that allows gas
transportation services to be provided in a safe, transparent and financially neutral (as
far as the transporter is concerned) manner – this framework includes processes such
as transportation programmes/nominations, balancing, measurement, invoicing and
emergencies.
4)
THE REGULATORY FRAMEWORK
The regulatory framework relevant to the Network Code comprises the following laws:
- Law 14 November 1995, n°481 – Rules to support the market and to regulate the
public utility services. Establishment of the Authority to regulate public utility
services;
- Decree n°98/30/CE of the European Parliament and Committee, 22 June 1998,
containing common rules for the gas market;
- Law 17 May 1999, n°144 – Rules regarding investments, power assigned to the
Government to restructure incentives for employment and the rules regarding INAIL,
as well as provisions to restructure the labour institutes (Article 41);
- Law Decree 23 May 2000, n°164 to apply the European Decree n° 98/30/CE
containing common rules for the gas market, in line with Article 41 of the law 17 May
1999, n°144;
- Ministry Decree 22 December 2000 – Identification of the National Pipeline Network
in line with Article 9 of the Law Decree 23 May 2000, n°164;
- Ministry Decree 27 March 2001 – Criteria to authorise gas importations from non-EU
countries, in line with Article 3 of the Law Decree 23 May 2000, n°164;
- Ministry Decree 26 September 2001 – Rules to determine and to withdraw gas from
strategic storage, provisions covering gas system emergencies, transitional rules to
assure the start of the withdrawal phase 2001/2002 from national gas storage;
- Resolution n°120/01 – Criteria determining gas transportation, dispatching and LNG
terminal utilisation tariffs;
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Network Code
Regulatory framework
- Resolution n°184/01 – Provisions covering the ability of eligible customers to
withdraw from gas supply contracts;
- Resolution n°193/01 – Provisions relating to gas transportation, dispatching and LNG
terminal utilisation tariffs, in line with the Authority’s decree 30 May 2001, n°120/01;
- Resolution n°26/02 – Criteria determining storage tariffs;
- Decree 24 June 2002 – Authorisation for the sale of gas;
- Resolution n°127/02 – Correction of mistakes in the Authority’s decree 30 May 2001,
n°120/01;
- Resolution n°137/02 – Rules assuring equitable access to transportation services and
rules for writing the Network Code;
- Resolution n°146/02 – Application of the Authority’s Decree 30 May 2001, n°120/01,
concerning gas transportation and dispatching tariffs;
- Resolution n° 207/02 – Provisions concerning natural gas sellers to final customers, as
provided for by Article 2 comma 12 letter h) of Law 14 November 1995, n°481.
- Directive n° 03/55/EC of the European Parliament and of the Council of 26 June 2003
concerning common rules for the internal market in natural gas and repealing
Directive 98/30/EC;
- Resolution n° 75/03 – Approval of the network code prepared by the company Snam
Rete Gas, in accordance with article 24, paragraph 5, of Law Decree no. 164, 23 May
2000;
- Resolution n° 91/03 – Start of proceedings to draw up the provision as of article 13 of
the Resolution of the Authority of electricity and gas no. 137/02 of 17 July 2002,
concerning the regulated capacity and gas market and amendment of Resolution no.
137/02 of 17 July 2002;
- Resolution n° 127/03 – Approval of the regulation concerning arbitration procedures
with the Authority of electricity and gas;
- Resolution n° 144/03 – Approval of the network code prepared by the company
Edison T&S Spa, in accordance with article 24, paragraph 5, of Law Decree no. 164 of
23 May 2000;
- Resolution n° 145/03 – Urgent provisions for the management of interconnection
points between the gas transport networks managed by the companies Snam Rete
Gas Spa and Edison T&S Spa;
- Resolution n° 22/04 – Provisions concerning the regulated capacity and gas market as
of article 13 of Resolution no. 137/02 of 17 July 2002 of the Authority of electricity and
gas;
- Ministerial decree of 25th June 2004 – Approval of the emergency procedure for
managing the failure to cover the natural gas requirement in the event of adverse
weather conditions;
- Resolution n° 113/04 – Approval of the tariff proposals for the transportation and
dispatch of natural gas, in implementation of Resolution n°120/01 issued by the
Authority for Electricity and Gas on 30th May 2001;
- Resolution n° 138/04 – Adoption of guarantees for free access to the natural gas
distribution service and rules for elaborating distribution codes;
- Resolution n° 144/04 – Integration and modification of Resolution n° 120/01 issued
by the Authority for Electricity and Gas on 30th May 2001 for cases of start-up;
- Resolution n°180/04 – Provisions concerning the regulated market of capacities and
gas and approval of modifications of the network code of Snam Rete Gas S.p.A. in
accordance with Resolution n° 22/04 issued by the Authority for Electricity and Gas
on 26th February 2004;
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Regulatory framework
- Resolution n°5/05 – Integration and modification of Resolution n° 120/01 issued by
the Authority for Electricity and Gas on 30th May 2001 for cases of start-up;
- Resolution n°6/05 – Provisions about the natural gas transportation service in cases
of withdrawals concentrated in off-peak periods;
- Resolution n°23/05 – Elimination of clauses of the network codes of Snam Rete Gas
S.p.A. and Società Gasdotti Italia S.p.A., in respect of sentences n. 2643/04 of 22nd
June 2004 and n.116/05 of 18th January 2005 passed by the Regional Administrative
Court of Lombardy;
- Resolution n°24/05 – Start of procedure for elaborating measures on the highest
calorific power of natural gas in accordance with article 2, clause 12, letters g) and h),
of law no. 481 of 14 November 1995.
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