DTe: Market consultation on regulation of flexibility services for gas
The Office of Energy Regulation (DTe) of the NMa is currently assessing whether the validity of the method decision of November 2005 (NMa Decision on regulatory method for flexibility services GTS) needs to be prolonged after 2008. The method decision outlines a regulatory method for the provision of flexibility services by GTS. These services make it possible to offset peaks and lows in the gas offtake of customers. Currently, GasTerra holds a dominant position in the market for flex services. In such a case, the Gas Act stipulates that GTS shall provide flexibility services as operator of the national gas transmission network. In its proposal for the supply of such services to GTS, GasTerra is under the obligation to set reasonable tariffs and conditions.
The regulator is currently looking into whether GasTerra will also hold a dominant position in the market for flexibility services after 2008. On request of DTe, the British consultancy bureau Frontier Economic has carried out a study, focusing particularly on the position of GasTerra in the market for flexibility services as provided in the gas wholesale market. Based on provisional conclusions, it is likely for GasTerra also to hold a dominant position in the period 2009-2011. The provisional conclusions provide sufficient ground for initiating procedures for prolonging the method decision. Indicatively, the process will be as follows and will result in timely action – for GTS and the market – for issuing tenders for the supply year 2009.
- Prolongation decision on Method Decision: to be initiated, possibly resulting in a draft decision as of April 2008 and a final decision as of July 2008.
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Study into dominant position GasTerra (Frontier): is being carried out, completion anticipated for April 2008. Will provide basis for DTe/NMa findings, to be included as an Annexe to '1'.
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Revision of the Interpretative Note ("Beleidsregel") on the Regulation of Flexibility Services; to be initiated in March 2008 and completion anticipated for June 2008.
Appeal
The regulator calls on all market parties and branch associations to respond to the provisional conclusions. In order to structure the consultation, DTe has drawn up a number of consultation questions. The study report may be downloaded from the DTe website as of today.
Market parties are kindly requested to respond to the consultation before 22 February 2008. You may do so by regular mail or by email. Please state reference no. 102651 in all correspondence.