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ShipOnline no.100 - November 09, 2017 Version française
Single market place: the CRE deliberates over the implementation modalities of both TRF and PEG

On October 26th, 2017, the French Energy Regulatory Commission (CRE) has published its deliberation regarding the creation of a single market place for gas in France in November 1st, 2018. The deliberation follows on the public consultation the CRE launched this summer. This one was based on joint proposals submitted by GRTgaz and TIGF and shared with the market during the Gas Concertation.

The deliberation approves the general operating principle based on the one of the Trading Region South (TRS) for this future single market place. Called Trading Region France (TRF), it will have a single Entry/Exit zone with two balancing areas (one for TIGF and another one for GRTgaz) and a Gas Exchange Point: the PEG.

Throughout the last 18 months, several co-construction working sessions took place through the Gas Concertation. Thus, both TSOs and the market have built together an optimised offer that complements the reasoned investments1 of “Val de Saône” and “Renforcement Gascogne Midi” (RGM). They have analysed contractual mechanisms to ensure the use of firm capacities subscribed during the residual cases when limits exceptionally occur. Those mechanisms are designed to modify in time or in space the flows that are planned upstream and/or downstream of the limit. After assessing the proposals, the CRE have selected in its deliberation the mechanisms with the best costs/benefits ratio for the shippers, and have ranked them in a priority order of activation:

  • Agreements with adjacent TSOs,
  • Interruption in interruptible capacities in D-1
  • Non-commercialization of unsubscribed capacities in D-1 and D
  • Locational Spread: incentive mechanism to make a call on the market. The goal is to prevent that a limit happens - or at least lower its impact - by reducing the quantity of gas that is transported where the limit occurs. The transporter must make simultaneously:
    • a locational purchase of gas, upstream of the limit
    • a locational sale of gas, downstream of the limit
  • Mutualised restriction of nominations: this mechanism must be used as a last resort if the other mechanisms aren’t sufficient. Transporters may restrict their capacities on one side of the limit and at superpoints scale. Like this, shippers will have to rebalance on the other side of this limit.
In the deliberation, the CRE also records the principles for maintenance management of the Trading Region France by both TSOs. They are mainly based on superpoints and mutualised management of nominations in order to maximise the available capacity according to the shippers’ choice instead of imposing restriction rates on each point of the network. Furthermore, the concertation between both TSOs during the creation of the maintenance schedule will be increased in order to end in the less constraining solution for shippers. Besides, maintenance works with an estimated <30GWh/d impact could be managed thanks to mechanisms designed to avoid congestions and/or reduce their impact on firm capacities availability.

Moreover, an increased monitoring of the network – and particularly of level of the storages located upstream/downstream of the limit – will be carried out by the TSOs.

Now, the co-construction continues with the stakeholders to achieve the operational implementation of the operating principles selected by the CRE.

In parallel, the construction of both “Val de Saône” and “Renforcement Gascogne Midi” (RGM) is going on according to the schedule. On their respective internet websites, the TSOs regularly inform the market about how works are progressing.

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1 Deliberation of May 7th, 2014 by the CRE relating to the creation of the single gas market place in France in 2018
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