Commission Regulation (EU) 2015/703Show full title

CHAPTER II U.K. INTERCONNECTION AGREEMENTS

Article 3 U.K. General provisions

[F1 Adjacent TSOs] shall ensure that at least the following terms and conditions detailed in Articles 6 to 12 are covered by an interconnection agreement in respect of each interconnection point:

(a)

rules for flow control;

(b)

measurement principles for gas quantities and quality;

(c)

rules for the matching process;

(d)

rules for the allocation of gas quantities;

(e)

communication procedures in case of exceptional events;

(f)

settlement of disputes arising from interconnection agreements;

(g)

amendment process for the interconnection agreement.

Textual Amendments

F1 Words in Art. 3 substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 4; 2020 c. 1, Sch. 5 para. 1(1)

Article 4 U.K. Information obligation

1. The transmission system operators shall identify the information contained in interconnection agreements that directly affects network users and shall inform them thereof.

2. Before concluding or amending an interconnection agreement which contains the rules referred to in Article 3(c), (d) and (e), transmission system operators shall invite network users to comment on the proposed text of those rules at least two months before the agreement is concluded or amended. The transmission system operators shall take the network users' comments into account when concluding or amending their interconnection agreement.

3. The mandatory terms of interconnection agreements listed in Article 3 or any amendments thereof concluded after the entry into force of this Regulation shall be communicated by the transmission system operators to their national regulatory authority F2 ... within 10 days after conclusion or amendment of the agreement. Transmission system operators shall also communicate interconnection agreements upon request of competent national authorities F3 ... within 10 days.

Textual Amendments

F2 Words in Art. 4(3) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 5(2); 2020 c. 1, Sch. 5 para. 1(1)

F3 Words in Art. 4(3) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 5(3); 2020 c. 1, Sch. 5 para. 1(1)

F4 Article 5 U.K. Interconnection agreement template

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Art. 5 omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 6; 2020 c. 1, Sch. 5 para. 1(1)

Article 6 U.K. Rules for flow control

1. In respect of flow control, the [F5 adjacent TSOs] shall:

(a) ensure that rules are established in order to facilitate a controllable, accurate, predictable and efficient gas flow across the interconnection point;

(b) ensure that rules are established for steering the gas flow across the interconnection point and for minimising the deviations from the flow pursuant to the matching process;

(c) designate the transmission system operator who is responsible for steering the gas flow across the interconnection point. If the [F5 adjacent TSOs] fail to agree on this designation, the transmission system operator that operates the flow control equipment shall, in cooperation with the other transmission system operator(s), be responsible for steering the gas flow across the interconnection point.

2. In order to steer the gas flow, the [F5 adjacent TSOs] shall decide on the quantity and direction of the gas flow for each interconnection point and for each hour of the gas day.

The transmission system operator designated pursuant to point (c) of paragraph 1 shall be responsible for steering the gas flow across the interconnection point provided that contractual obligations regarding pressure are complied with by all [F5 adjacent TSOs]:

(a) at a level of accuracy sufficient to minimise the steering difference; and

(b) at a level of stability in line with the efficient use of the gas transmission networks.

3. The quantity and direction of the gas flow decided by the [F5 adjacent TSOs] shall reflect:

(a) the result of the matching process;

(b) the operational balancing account correction;

(c) any efficient flow control arrangements between the [F5 adjacent TSOs] for purposes such as ramp-up, ramp-down, minimum flow, split of the flow at the virtual interconnection point if any, and/or switch of flow direction or operational cost efficiency;

(d) any arrangement managing cross-border trade restrictions due to gas quality differences pursuant to Article 15 and/or odourisation practices pursuant to Article 19.

4. A transmission system operator may decide to alter the quantity of gas or the gas flow direction or both, if this is needed, in order to:

(a) comply with provisions laid down in F6 ... safety legislation applicable to the interconnection point;

(b) comply with requirements laid down in Emergency Plans and Preventive Action Plans developed in accordance with Regulation (EU) No 994/2010 of the European Parliament and of the Council(1)[F7 as it has effect in EU law immediately before IP completion day];

(c) react in case the operator's system is affected by an exceptional event.

Textual Amendments

F5 Words in Art. 6 substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 7(2); 2020 c. 1, Sch. 5 para. 1(1)

F6 Words in Art. 6(4)(a) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 7(3); 2020 c. 1, Sch. 5 para. 1(1)

F7 Words in Art. 6(4)(b) inserted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 7(4) (as amended by S.I. 2020/1016, regs. 1(2), 4(3)(a)); 2020 c. 1, Sch. 5 para. 1(1)

Article 7 U.K. Measurement principles for gas quantity and quality

1. In respect of the measurement principles for volume, energy and gas quality, the [F8 adjacent TSOs] shall ensure that:

(a) the details of the measurement standards applicable at the interconnection point are established;

(b) the transmission system operator responsible for the installation, operation and maintenance of the measurement equipment is identified. This operator shall have the obligation to make all information and data in respect of the measurement of gas flows at the interconnection point available to the other [F9 adjacent TSOs] in a timely manner and at a frequency specified.

2. The installation, operation and maintenance of measurement equipment at an interconnection point shall take into account the technical requirements imposed by national regulations [F10 and the regulations of other countries or territories] on the [F8 adjacent TSOs].

3. The [F8 adjacent TSOs] shall agree on measurement principles which shall at least include:

(a) a description of the metering station including measurement and analysis equipment to be used and details of any secondary equipment that may be used in case of failure;

(b) the gas quality parameters and volume and energy that shall be measured, as well as the range and the maximum permissible error or uncertainty margin within which the measurement equipment shall operate, the frequency of measurements, in what units and according to what standards the measurement shall be made as well as any conversion factors used;

(c) the procedures and methods that shall be used to calculate those parameters which are not directly measured;

(d) a description of the method of calculation in respect of the maximum permissible error or uncertainty in the determination of energy transported;

(e) a description of the data validation process in use for the measured parameters;

(f) the measurement validation and quality assurance arrangements, including verification and adjustment procedures to be agreed between the [F8 adjacent TSOs];

(g) the way data, including frequency and content, is provided among the [F8 adjacent TSOs] in respect of the measured parameters;

(h) the specific list of signals and alarms to be provided by the [F11 adjacent TSOs who operate the measurement equipment to the other adjacent TSOs];

(i) the method of determining a correction to a measurement and any subsequent procedures that may be necessary in a temporary situation where the measurement equipment is found to be or have been in error (either under-reading or over-reading outside of its defined uncertainty range).This transmission system operator shall take appropriate action to end this situation.

(j) rules that shall apply between [F8 adjacent TSOs] in the event of failure of the measurement equipment;

(k) rules that shall apply between the [F8 adjacent TSOs] for:

(i)

access to the measurement facility;

(ii)

additional verifications of measurement facility;

(iii)

modification of the measurement facility;

(iv)

attendance during calibration and maintenance work at the measurement facility.

4. If the [F8 adjacent TSOs] fail to comply with their obligations provided for in paragraphs 1 and 3:

(a) the transmission system operator in control of the measurement equipment shall be responsible for the installation, operation and maintenance of such equipment and for providing the other transmission system operator with the data regarding the measurement of gas flows at the interconnection point in a timely manner;

(b) the European standard EN1776 ‘Gas Supply Natural Gas Measuring Stations Functional Requirements’ F12 ... shall apply.

Textual Amendments

F8 Words in Art. 7 substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 8(2); 2020 c. 1, Sch. 5 para. 1(1)

F9 Words in Art. 7(1)(b) substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 8(3); 2020 c. 1, Sch. 5 para. 1(1)

F10 Words in Art. 7(2) inserted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 8(4); 2020 c. 1, Sch. 5 para. 1(1)

F11 Words in Art. 7(3)(h) substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 8(5); 2020 c. 1, Sch. 5 para. 1(1)

F12 Words in Art. 7(4)(b) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 8(6); 2020 c. 1, Sch. 5 para. 1(1)

Article 8 U.K. Rules for the matching process

1. In respect of the matching process, the [F13 adjacent TSOs] shall establish:

(a) the rules detailing the matching process taking into account daily-hourly nomination arrangements where relevant;

(b) the rules governing the communication and processing of the relevant data among the [F13 adjacent TSOs] in order to calculate the processed quantities and confirmed quantities of gas for network users and the quantity of gas that needs to be scheduled to flow at the interconnection point(s).

2. Nominations and re-nominations shall be managed in accordance with the following:

(a) the application of a matching rule shall lead to identical confirmed quantities for each pair of network users at both sides of the interconnection point when processed quantities are not aligned;

(b) the [F13 adjacent TSOs] may agree to maintain or implement a matching rule other than the lesser rule, provided that this rule is published and network users are invited to comment on the proposed matching rule within a period of time of not less than two months after publication of the matching rule;

(c) the [F13 adjacent TSOs] shall specify their respective roles in the matching process by indicating whether they are the initiating or the matching transmission system operator;

(d) the [F13 adjacent TSOs] shall specify the applicable time schedule for the matching process within the nomination or re-nomination cycle, given that the whole matching process shall not take more than two hours from the starting of the nomination or re-nomination cycle, and shall take into account:

(i)

the data that needs to be exchanged between the [F13 adjacent TSOs] in order to enable them to inform network users of their confirmed quantities before the end of the nomination or re-nomination cycle, including as a minimum the data referred to in paragraph 4(b);

(ii)

the data exchange process defined in point (i) above shall enable the [F13 adjacent TSOs] to perform all calculation and communication steps in an accurate and timely manner.

3. When processing nominations for an interconnection point, the [F13 adjacent TSOs] shall ensure that the gas flow at both sides of the interconnection point is calculated on a consistent basis taking into account any temporary reduction of capacity due to any of the conditions referred to in Article 6(4) on one or both sides of the interconnection point.

4. Each interconnection agreement shall specify in its provisions on data exchange for the matching process:

(a) the use of data exchange between the [F13 adjacent TSOs] for the matching process;

(b) the harmonised information contained within the data exchange for the matching process which shall contain at least the following:

(i)

interconnection point identification;

(ii)

network user identification or if applicable its portfolio identification;

(iii)

identification of the party delivering to or receiving gas from the network user or if applicable its portfolio identification;

(iv)

start and end time of the gas flow for which the matching is made;

(v)

gas day;

(vi)

processed and confirmed quantities;

(vii)

direction of gas flow.

5. Unless otherwise agreed by the [F13 adjacent TSOs] in their interconnection agreement, the following shall apply:

(a) the transmission system operators shall use the lesser rule. The application of the lesser rule as the default rule may only be restricted in case the conditions of point 2.2.3.1 of Annex I of Regulation (EC) No 715/2009 are fulfilled and its application would prevent the offer of firm capacity from the congestion management procedures;

(b) the transmission system operator in control of the flow control equipment shall be the matching transmission system operator;

(c) the transmission system operators shall perform the matching process in the following sequential steps:

(i)

calculating and sending of processed quantities of gas by the initiating transmission system operator within 45 minutes of the start of the nomination or re-nomination cycle;

(ii)

calculating and sending of confirmed quantities of gas by the matching transmission system operator within 90 minutes from the start of the nomination or re-nomination cycle;

(iii)

sending confirmed quantities of gas to network users and scheduling the gas flow across the interconnection point by the [F13 adjacent TSOs] within two hours from the start of the nomination or re-nomination cycle. These sequential steps shall be without prejudice to the rule for minimum interruption lead times referred to in Article 22 of Regulation (EU) No 984/2013 and paragraph 2 (d) of this Article.

Textual Amendments

F13 Words in Art. 8 substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 9; 2020 c. 1, Sch. 5 para. 1(1)

Article 9 U.K. Rules for the allocation of gas quantities

1. In respect of the allocation of gas quantities, the [F14 adjacent TSOs] shall establish rules ensuring consistency between the allocated quantities at both sides of the interconnection point.

2. Unless otherwise agreed in the interconnection agreement, the transmission system operators shall use an operational balancing account. The transmission system operator in control of the measurement equipment shall recalculate the operational balancing account with validated quantities and communicate it to the [F15 adjacent TSOs].

3. Where an operational balancing account applies:

(a) the steering difference shall be allocated to an operational balancing account of the [F14 adjacent TSOs] and the allocations to be provided [F16 by each adjacent TSO] to their respective network users shall be equal to the confirmed quantities;

(b) the [F14 adjacent TSOs] shall maintain an operational balancing account balance that is as close to zero as possible;

(c) the operational balancing account limits shall take into account specific characteristics of each interconnection point and/or the interconnected transmission networks, in particular:

(i)

physical characteristics of the interconnection point;

(ii)

linepack capability of each transmission network;

(iii)

the total technical capacities at the interconnection point;

(iv)

gas flow dynamics at the interconnected transmission networks.

Where the defined limits of the operational balancing account are reached, the [F14 adjacent TSOs] may agree to extend those limits in order to provide allocations to network users that are equal to their confirmed quantities or otherwise allocate quantities to network users proportionally based on the measured quantity.

4. The [F14 adjacent TSOs] may agree to maintain or implement an allocation rule other than the operational balancing account, provided that this rule is published and network users are invited to comment on the proposed allocation rule within at least two months after publication of the allocation rule.

Textual Amendments

F14 Words in Art. 9 substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 10(2); 2020 c. 1, Sch. 5 para. 1(1)

F15 Words in Art. 9(2) substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 10(3); 2020 c. 1, Sch. 5 para. 1(1)

F16 Words in Art. 9(3) substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 10(4); 2020 c. 1, Sch. 5 para. 1(1)

Article 10 U.K. Communication procedures in case of exceptional events

1. The [F17 adjacent TSOs] shall ensure that communication procedures which facilitate fast and simultaneous communication in cases of exceptional events are established. Unless otherwise agreed, the communication between the involved transmission system operators shall be performed by oral communication in English for information, followed by an electronic written confirmation.

2. The transmission system operator affected by an exceptional event shall be required, as a minimum, to inform its network users with respect to point (b) and (c) of this paragraph if there is a potential impact on their confirmed quantities and the [F18 adjacent TSOs] with respect to point (a) and (c) of this paragraph of the occurrence of such exceptional event and to provide all necessary information about:

(a) the possible impact on the quantities and quality of gas that can be transported through the interconnection point;

(b) the possible impact on the confirmed quantities for network users active at the concerned interconnection point(s);

(c) the expected and actual end of the exceptional event.

3. This Article applies without prejudice to the provisions set forth under Regulation (EU) No 1227/2011 of the European Parliament and of the Council(2) and to its implementing acts.

Textual Amendments

F17 Words in Art. 10(1) substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 11(2); 2020 c. 1, Sch. 5 para. 1(1)

F18 Words in Art. 10(2) substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 11(3); 2020 c. 1, Sch. 5 para. 1(1)

Article 11 U.K. Settlement of disputes arising from Interconnection Agreements

1. The [F19 adjacent TSOs] shall endeavour to solve amicably any disputes arising out of or in connection with the interconnection agreement and specify therein a dispute settlement mechanism for disputes which could not be amicably settled.

The dispute settlement mechanism shall at least specify:

(a) the applicable law; and

(b) the court of jurisdiction or the terms and conditions of the appointment of experts either within the framework of an institutional forum or on an ad hoc basis, which may include arbitration.

Where the dispute settlement mechanism is arbitration, the Convention on the Recognition and Enforcement of Foreign Arbitral Awards shall apply.

F20 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F19 Words in Art. 11(1) substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 12(2); 2020 c. 1, Sch. 5 para. 1(1)

F20 Art. 11(2) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 12(3); 2020 c. 1, Sch. 5 para. 1(1)

Article 12 U.K. Amendment process

1. The [F21 adjacent TSOs] shall establish a transparent and detailed amendment process of their interconnection agreement to be triggered by a written notice of one of the transmission system operators.

2. If the [F21 adjacent TSOs] fail to reach an agreement on the amendment process, they may use the dispute settlement mechanisms developed in accordance with Article 11.

Textual Amendments

F21 Words in Art. 12 substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 3 para. 13; 2020 c. 1, Sch. 5 para. 1(1)

(1)

Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply and repealing Council Directive 2004/67/EC (OJ L 295, 12.11.2010, p. 1).

(2)

Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (OJ L 326, 8.12.2011, p. 1).