Regulation (EC) No 1775/2005 of the European Parliament and of the Council of 28 September 2005 on conditions for access to the natural gas transmission networks   (Text with EEA relevance)
Date: 2005-09-28
Institutions: Council of the European Union, European Parliament
Subjects: competition law, energy grid, energy transport, market access, natural gas, pipeline transport, single market

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I

(Acts whose publication is obligatory)

REGULATION (EC) No 1775/2005 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 28 September 2005

on conditions for access to the natural gas transmission networks

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 95 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and
Social Committee (1),

Following consultation of the Committee of the Regions,

Acting in accordance with the procedure laid down in
Article 251 of the Treaty (2),

Whereas:

(1) Directive 2003/55/EC of the European Parliament and of
the Council of 26 June 2003 concerning common rules
for the internal market in natural gas (3) has made a
significant contribution towards the creation of an
internal market for gas. It is now necessary to provide
for structural changes in the regulatory framework to
tackle remaining barriers to the completion of
the
internal market in particular regarding the trade of gas.
in particular
Additional technical rules are necessary,
regarding third party access
services, principles of
capacity allocation mechanisms, congestion management
procedures and transparency requirements.

(2)

Experience gained in the implementation and monitoring
of a first set of Guidelines for Good Practice, adopted by
the European Gas Regulatory Forum (the Forum)
in
2002, demonstrates that in order to ensure the full
implementation of the rules set out in the Guidelines in
all Member States, and in order to provide a minimum

guarantee of equal market access conditions in practice, it
is necessary to provide for them to become legally
enforceable.

(3) A second set of common rules entitled ‘the Second
Guidelines for Good Practice’ was adopted at the meeting
of
the Forum on 24-25 September 2003 and the
purpose of this Regulation is to lay down, on the basis of
those Guidelines, basic principles and rules regarding
network access and third party access services, conges-
tion management,
transparency, balancing and the
trading of capacity rights.

(4) Article 15 of Directive 2003/55/EC allows

for a
combined transmission and distribution system operator.
Therefore, the rules set out in this Regulation do not
require modification of
the organisation of national
transmission and distribution systems that are consistent
with the relevant provisions of Directive 2003/55/EC
and in particular Article 15 thereof.

(5) High pressure pipelines linking up local distributors to
the gas network which are not primarily used in the
context of local distribution are included in the scope of
this Regulation.

(1) OJ C 241, 28.9.2004, p. 31.
(2) Opinion of the European Parliament of 20 April 2004 (OJ
C 104 E, 30.4.2004, p. 306), Council common position of
12 November 2004 (OJ C 25 E, 1.2.2005, p. 44), position of
the European Parliament of 8 March 2005 (not yet published in
the Official Journal) and Council Decision of 12 July 2005.

(3) OJ L 176, 15.7.2003, p. 57.

(6)

It is necessary to specify the criteria according to which
tariffs for access to the network are determined, in order
to ensure that they fully comply with the principle of
non-discrimination and the needs of a well-functioning
internal market and take fully into account the need for
system integrity and reflect actual costs incurred, insofar
as such costs correspond to those of an efficient and
structurally comparable network operator and are
including appropriate return on
transparent, whilst

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investments, and where appropriate taking account of
the benchmarking of tariffs by the regulatory authorities.

exploit business opportunities occurring within the
framework of the internal market. Common minimum
standards on such transparency
are
necessary. The publication of such information may be
done by different means, including electronic means.

requirements

(7)

it

for access

to networks

is
In calculating tariffs
important
to take account of actual costs incurred,
insofar as such costs correspond to those of an efficient
and structurally comparable network operator and are
transparent, as well as of the need to provide appropriate
return on investments and incentives to construct new
infrastructure. In this respect, and in particular if effective
pipeline-to-pipeline competition exists, the benchmark-
ing of tariffs by the regulatory authorities will be a
relevant consideration.

(8) The use of market-based arrangements, such as auctions,
to determine tariffs has to be compatible with the
provisions laid down in Directive 2003/55/EC.

(9) A common minimum set of third party access services is
necessary to provide a common minimum standard of
access in practice throughout the Community, to ensure
that third party access services are sufficiently compatible
and to allow the benefits accruing from a well-
functioning internal market for gas to be exploited.

(10) References to harmonised transportation contracts in the
context of non-discriminatory access to the network of
transmission system operators do not mean that the
terms and conditions of the transportation contracts of a
particular system operator in a Member State must be the
same as those of another transmission system operator
in that Member State or in another Member State, unless
minimum requirements are set which must be met by all
transportation contracts.

(11) The management of contractual congestion of networks
is an important issue in completing the internal gas
market. It is necessary to develop common rules which
balance the need to free up unused capacity in
accordance with the ‘use-it-or-lose-it’ principle with the
rights of the holders of the capacity to use it when
necessary, while at the same time enhancing liquidity of
capacity.

(12) Although physical congestion of networks is rarely a
problem at present in the Community, it may become
one in the future. It is important therefore to provide the
basic principle for the allocation of congested capacity in
such circumstances.

(13) For network users to gain effective access to gas networks
they need information in particular on technical
requirements and available capacity to enable them to

(14) Non-discriminatory and transparent balancing systems
for gas, operated by transmission system operators, are
important mechanisms, particularly for new market
entrants which may have more difficulty balancing their
overall sales portfolio than companies already established
within a relevant market. It is therefore necessary to lay
down rules to ensure that transmission system operators
operate such mechanisms in a manner compatible with
non-discriminatory,
transparent and effective access
conditions to the network.

(15) The trading of primary capacity rights is an important
part of developing a competitive market and creating
liquidity. This Regulation should therefore lay down basic
rules on that issue.

(16)

It is necessary to ensure that undertakings acquiring
capacity rights are able to sell them to other licensed
undertakings in order to ensure an appropriate level of
liquidity on the capacity market. This approach, however,
does not preclude a system where capacity unused for a
given period, determined at national level, is made re-
available to the market on a firm basis.

(17) National regulatory authorities should ensure compliance
with the rules contained in this Regulation and the
guidelines adopted pursuant to it.

(18)

In the Guidelines annexed to this Regulation, specific
detailed implementing rules are defined on the basis of
the second Guidelines for Good Practice. Where appro-
priate, these rules will evolve over time, taking into
account the differences of national gas systems.

(19) When proposing to amend the Guidelines laid down in
the Annex to this Regulation, the Commission should
ensure prior consultation of all relevant parties con-
cerned with the Guidelines, represented by the profes-
sional organisations, and of the Member States within the
Forum and should request the input of the European
Regulators Group for Electricity and Gas.

(20) The Member States

competent national
authorities
should be required to provide relevant
information to the Commission. Such information
should be treated confidentially by the Commission.

and the

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(21) This Regulation and the guidelines adopted in accordance
with it are without prejudice to the application of the
Community rules on competition.

Article 2

Definitions

(22) The measures necessary for the implementation of this
Regulation should be adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (1).

fair

rules

(23) Since the objective of this Regulation, namely the setting
of
to natural gas
for access conditions
transmission systems, cannot be sufficiently achieved
by the Member States and can therefore, by reason of the
scale and effects of the action, be better achieved at
Community level, the Community may adopt measures
in accordance with the principle of subsidiarity, as set out
in Article 5 of
In accordance with the
principle of proportionality, as set out in that Article, this
Regulation does not go beyond what is necessary in
order to achieve that objective,

the Treaty.

HAVE ADOPTED THIS REGULATION:

Article 1

Subject matter and scope

1. This Regulation aims at setting non-discriminatory rules
for access conditions to natural gas transmission systems
taking into account the specificities of national and regional
markets with a view to ensuring the proper functioning of the
internal gas market.

This objective shall
include the setting of harmonised
principles for tariffs, or the methodologies underlying their
calculation, for access to the network, the establishment of
third party access services and harmonised principles for
capacity allocation and congestion management, the determi-
nation of
transparency requirements, balancing rules and
imbalance charges and facilitating capacity trading.

2. Member States may establish an entity or body set up in
compliance with Directive 2003/55/EC for the purpose of
carrying out one or more functions typically attributed to the
transmission system operator, which shall be subject to the
requirements of this Regulation.

(1) OJ L 184, 17.7.1999, p. 23.

For

1.
definitions shall apply:

the purpose of

this Regulation,

the following

1.

2.

3.

4.

5.

6.

7.

8.

9.

‘transmission’ means the transport of natural gas through
a network, which mainly contains high pressure
pipelines, other than an upstream pipeline network and
other than the part of high pressure pipelines primarily
used in the context of local distribution of natural gas,
with a view to its delivery to customers, but not
including supply;

‘transportation contract’ means a contract which the
transmission system operator has concluded with a
network user with a view to carrying out transmission;

‘capacity’ means the maximum flow, expressed in normal
cubic meters per time unit or in energy unit per time
unit, to which the network user is entitled in accordance
with the provisions of the transportation contract;

‘unused capacity’ means firm capacity which a network
user has acquired under a transportation contract but
which that user has not nominated by the deadline
specified in the contract;

‘congestion management’ means management of
the
capacity portfolio of the transmission system operator
with a view to optimal and maximum use of
the
technical capacity and the timely detection of future
congestion and saturation points;

‘secondary market’ means the market of the capacity
traded otherwise than on the primary market;

‘nomination’ means the prior reporting by the network
user to the transmission system operator of the actual
flow that he wishes to inject into or withdraw from the
system;

‘re-nomination’ means the subsequent reporting of a
corrected nomination;

‘system integrity’ means any situation in respect of a
transmission network including necessary transmission
facilities in which the pressure and the quality of the
natural gas remain within the minimum and maximum
limits laid down by the transmission system operator, so
that the transmission of natural gas is guaranteed from a
technical standpoint;

10.

‘balancing period’ means the period within which the
offtake of an amount of natural gas, expressed in units of
energy, must be offset by every network user by means of
the injection of the same amount of natural gas into the
transmission network in accordance with the transporta-
tion contract or the network code;

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11.

12.

13.

14.

15.

16.

‘network user’ means a customer or a potential customer
of a transmission system operator, and transmission
system operators themselves in so far as it is necessary
for them to carry out their functions in relation to
transmission;

‘interruptible services’ means services offered by the
transmission system operator in relation to interruptible
capacity;

‘interruptible capacity’ means gas transmission capacity
that can be interrupted by the transmission system
operator according to the conditions stipulated in the
transportation contract;

‘long-term services’ means
services offered by the
transmission system operator with a duration of one
year or more;

‘short-term services’ means
transmission system operator with a duration of
than one year;

services offered by the
less

‘firm capacity’ means gas transmission capacity contrac-
tually guaranteed as uninterruptible by the transmission
system operator;

17.

‘firm services’ means services offered by the transmission
system operator in relation to firm capacity;

18.

‘technical capacity’ means the maximum firm capacity
that the transmission system operator can offer to the
network users, taking account of system integrity and the
operational requirements of the transmission network;

19.

‘contracted capacity’ means capacity that the transmis-
sion system operator has allocated to a network user by
means of a transportation contract;

20.

‘available capacity’ means the part of
the technical
capacity that is not allocated and is still available to the
system at that moment;

21.

‘contractual congestion’ means a situation where the level
of firm capacity demand exceeds the technical capacity;

22.

‘primary market’ means the market of the capacity traded
directly by the transmission system operator;

23.

‘physical congestion’ means a situation where the level of
the technical
demand for actual deliveries exceeds
capacity at some point in time.

Regulation,
definition of transmission in point 3 of that Article.

shall also apply with the exception of

the

Article 3

Tariffs for access to networks

1. Tariffs, or the methodologies used to calculate them,
applied by transmission system operators and approved by the
regulatory authorities pursuant to Article 25(2) of Directive
2003/55/EC, as well as tariffs published pursuant to Article 18
(1) of that Directive, shall be transparent, take into account the
need for system integrity and its improvement and reflect
actual costs incurred,
insofar as such costs correspond to
those of an efficient and structurally comparable network
operator and are transparent, whilst including appropriate
return on investments, and where appropriate taking account
of the benchmarking of tariffs by the regulatory authorities.
Tariffs, or the methodologies used to calculate them, shall be
applied in a non-discriminatory manner.

Member States may decide that tariffs may also be determined
auctions,
through market-based arrangements,
provided that such arrangements and the revenues arising
therefrom are approved by the regulatory authority.

such as

Tariffs, or the methodologies used to calculate them, shall
facilitate efficient gas trade and competition, while at the same
time avoiding cross-subsidies between network users and
investment and maintaining or
providing incentives for
creating interoperability for transmission networks.

restrict market
2. Tariffs for network access shall not
liquidity nor distort
trade across borders of different
transmission systems. Where differences in tariff structures
or balancing mechanisms would hamper
across
transmission systems, and notwithstanding Article 25(2) of
Directive 2003/55/EC, transmission system operators shall, in
close cooperation with the relevant national authorities,
actively pursue convergence of tariff structures and charging
principles including in relation to balancing.

trade

Article 4

Third party access services

1. Transmission system operators shall:

2. The definitions contained in Article 2 of Directive
2003/55/EC, which are relevant for the application of this

(a)

ensure that they offer services on a non-discriminatory
In particular, where a
basis
transmission system operator offers the same service to

to all network users.

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it shall do so under equivalent
different customers,
contractual terms and conditions, either using harmo-
nised transportation contracts or a common network
code approved by the competent authority in accordance
with the procedure laid down in Article 25 of Directive
2003/55/EC;

3. When transmission system operators conclude new
transportation contracts or renegotiate existing transportation
contracts, these contracts shall take into account the following
principles:

(b) provide both firm and interruptible third party access
services. The price of interruptible capacity shall reflect
the probability of interruption;

(c)

offer to network users both long and short-term services.

2. Transportation contracts signed with non-standard start
dates or with a shorter duration than a standard annual
transportation contract shall not result in arbitrarily higher or
lower tariffs not reflecting the market value of the service, in
accordance with the principles laid down in Article 3(1).

3. Where appropriate, third party access services may be
granted subject to appropriate guarantees from network users
with respect
to the creditworthiness of such users. Such
guarantees must not constitute any undue market entry
barriers and must be non-discriminatory, transparent and
proportionate.

(a)

in the event of contractual congestion, the transmission
system operator shall offer unused capacity on the
primary market at least on a day-ahead and interruptible
basis;

(b) network users who wish to re-sell or sublet their unused
contracted capacity on the secondary market shall be
entitled to do so. Member States may require notification
or information of the transmission system operator by
network users.

the

4. When capacity contracted under existing transportation
contracts remains unused and contractual congestion occurs,
transmission system operators shall apply paragraph 3 unless
existing
this would infringe
transportation contracts. Where this would infringe the
existing transportation contracts, transmission system opera-
tors
competent
following consultation with the
authorities, submit a request to the network user for the use
on the secondary market of unused capacity in accordance
with paragraph 3.

requirements of

shall,

the

Article 5

In the event

5.
that physical congestion exists, non-
discriminatory, transparent capacity allocation mechanisms
shall be applied by the transmission system operator or, as
appropriate, the regulatory authorities.

Principles of capacity allocation mechanisms and
congestion management procedures

1. The maximum capacity at all relevant points referred to in
Article 6(3) shall be made available to market participants,
taking into account system integrity and efficient network
operation.

Article 6

Transparency requirements

2. Transmission system operators
implement and
publish non-discriminatory and transparent capacity alloca-
tion mechanisms, which shall:

shall

1. Transmission system operators shall make public detailed
information regarding the services they offer and the relevant
conditions applied, together with the technical information
necessary for network users to gain effective network access.

(a)

provide appropriate economic signals for efficient and
maximum use of
technical capacity and facilitate
investment in new infrastructure;

(b) be compatible with the market mechanisms including
spot markets and trading hubs, while being flexible and
capable of adapting to evolving market circumstances;

(c)

be compatible with the network access systems of the
Member States.

In order

2.
to ensure transparent, objective and non-
discriminatory tariffs and facilitate efficient utilisation of the
relevant
gas network,
national authorities shall publish reasonably and sufficiently
detailed information on tariff derivation, methodology and
structure.

transmission system operators or

the services provided, each transmission system
3.
For
operator
information on technical,
shall make public
contracted and available capacities on a numerical basis for
all relevant points including entry and exit points on a regular
and rolling basis and in a user-friendly standardised manner.

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4. The relevant points of a transmission system on which
the information must be made public shall be approved by the
competent authorities after consultation with network users.

avoid cross-subsidisation between network users and shall not
hamper the entry of new market entrants.

5. Where a transmission system operator considers that it is
not entitled for confidentiality reasons to make public all the
data required, it shall seek the authorisation of the competent
authorities to limit publication with respect to the point or
points in question.

Any calculation methodology for imbalance charges as well as
the final
tariffs shall be made public by the competent
authorities or the transmission system operator as appro-
priate.

The competent authorities shall grant or refuse the authorisa-
tion on a case by case basis, taking into account in particular
the need to respect legitimate commercial confidentiality and
the objective of creating a competitive internal gas market. If
the authorisation is granted, available capacity shall be
published without indicating the numerical data that would
contravene confidentiality.

No such authorisation as referred to in this paragraph shall be
granted where three or more network users have contracted
capacity at the same point.

6. Transmission system operators shall always disclose the
information required by this Regulation in a meaningful,
quantifiably clear and easily accessible way and on a non-
discriminatory basis.

Article 7

Balancing rules and imbalance charges

shall be designed in a fair, non-
1. Balancing rules
discriminatory and transparent manner and shall be based
on objective criteria. Balancing rules shall reflect genuine
system needs taking into account the resources available to the
transmission system operator.

2.
In the case of non-market based balancing systems,
tolerance levels shall be designed in a way that either reflects
seasonality or results in a tolerance level higher than that
resulting from seasonality, and that
the actual
technical capabilities of the transmission system. Tolerance
levels shall reflect genuine system needs taking into account
the resources available to the transmission system operator.

reflects

3.
Imbalance charges shall be cost-reflective to the extent
possible, whilst providing appropriate incentives on network
users to balance their input and offtake of gas. They shall

4. Transmission system operators may impose penalty
charges on network users whose input into and offtake from
the transmission system is not in balance according to the
balancing rules referred to in paragraph 1.

Penalty charges which exceed the actual balancing costs
5.
incurred,
insofar as such costs correspond to those of an
efficient and structurally comparable network operator and
are transparent, shall be taken into account when calculating
tariffs in a way that does not reduce the interest in balancing
and shall be approved by the competent authorities.

6.
In order to enable network users to take timely corrective
action, transmission system operators shall provide sufficient,
well-timed and reliable on-line based information on the
balancing status of network users. The level of information
provided shall reflect the level of information available to the
transmission system operator. Where they exist, charges for
the provision of such information shall be approved by the
competent authorities and shall be made public by the
transmission system operator.

7. Member States shall ensure that
transmission system
operators endeavour to harmonise balancing regimes and
streamline structures and levels of balancing charges in order
to facilitate gas trade.

Article 8

Trading of capacity rights

Each transmission system operator shall take reasonable steps
to allow capacity rights to be freely tradable and to facilitate
such trade. Each such operator shall develop harmonised
transportation contracts and procedures on the primary
market to facilitate secondary trade of capacity and recognise
the transfer of primary capacity rights where notified by
network users. The harmonised transportation contracts and
procedures shall be notified to the regulatory authorities.

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Article 9

Guidelines

Article 11

Provision of information

1. Where appropriate, Guidelines providing the minimum
degree of harmonisation required to achieve the aim of this
Regulation shall specify:

(a)

details of
character, duration and other requirements of
services, in accordance with Article 4;

third party access services including the
these

(b) details of the principles underlying capacity allocation
mechanisms and on the application of congestion
management procedures in the event of contractual
congestion, in accordance with Article 5;

(c)

details on the definition of the technical
information
necessary for network users to gain effective access to the
system and the definition of all relevant points for
transparency requirements, including the information to
be published at all relevant points and the time schedule
according to which this information shall be published,
in accordance with Article 6.

2. Guidelines on the issues listed in paragraph 1 are laid
down in the Annex. They may be amended by the
Commission;
this shall be done in accordance with the
procedure referred to in Article 14(2).

3. The application and amendment of Guidelines adopted
pursuant to this Regulation shall reflect differences between
national gas systems, and shall therefore not require uniform
detailed terms and conditions of
third party access at
Community level. They may, however, set minimum require-
ments
to achieve non-discriminatory and
transparent network access conditions necessary for an
internal gas market, which may then be applied in the light
of differences between national gas systems.

to be met

Member States and the regulatory authorities shall, on request,
provide to the Commission all information necessary for the
purposes of Article 9.

The Commission shall fix a reasonable time limit within which
the information is to be provided, taking into account the
complexity of the information required and the urgency with
which the information is needed.

Article 12

Right of Member States to provide for more detailed
measures

This Regulation shall be without prejudice to the rights of
Member States to maintain or introduce measures that contain
more detailed provisions than those set out in this Regulation
and the Guidelines referred to in Article 9.

Article 13

Penalties

the provisions of

to infringements of

1. The Member States shall lay down the rules on penalties
applicable
this
Regulation and shall take all measures necessary to ensure
that they are implemented. The penalties provided for must be
effective, proportionate and dissuasive. The Member States
shall notify those provisions to the Commission by 1 July
2006 at the latest and shall notify it without delay of any
subsequent amendment affecting them.

Penalties provided for pursuant to paragraph 1 shall not

2.
be of a criminal law nature.

Article 14

Article 10

Committee procedure

Regulatory authorities

1. The Commission shall be assisted by the Committee set
up by Article 30 of Directive 2003/55/EC.

When carrying out their responsibilities under this Regulation,
the regulatory authorities of the Member States established
under Article 25 of Directive 2003/55/EC shall ensure
compliance with this Regulation and the Guidelines adopted
pursuant to Article 9 of this Regulation.

2. Where reference is made to this paragraph, Articles 5 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC
shall be set at three months.

Where appropriate they shall cooperate with each other and
with the Commission.

3. The Committee shall adopt its Rules of Procedure.

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Article 15

Commission report

the report shall examine to what extent

The Commission shall monitor the implementation of this
In its report under Article 31(3) of Directive
Regulation.
2003/55/EC,
the Commission shall also report on the
experience gained in the application of this Regulation. In
particular
the
Regulation has been successful in ensuring non-discrimina-
tory and cost-reflective network access conditions for gas
transmission networks in order to contribute to customer
choice in a well functioning internal market and to long-term
security of
shall be
If necessary,
accompanied by appropriate proposals and/or recommenda-
tions.

supply.

report

the

Article 16

Derogations and exemptions

This Regulation shall not apply to:

(a)

natural gas transmission systems situated in Member
States for the duration of derogations granted under
Article 28 of Directive 2003/55/EC; Member States
which have been granted derogations under Article 28 of
Directive 2003/55/EC may apply to the Commission for
a temporary derogation from the application of this
Regulation, for a period of up to two years from the date
at which the derogation referred to in this point expires;

(b)

interconnectors between Member States and significant
increases of capacity in existing infrastructures and
modifications of such infrastructures which enable the

development of new sources of gas supply as referred to
in Article 22(1) and (2) of Directive 2003/55/EC which
are exempted from the provisions of Articles 18, 19, 20
and 25(2), (3) and (4) of that Directive as long as they are
exempted from the provisions
referred to in this
subparagraph; or

(c)

natural gas
transmission systems which have been
granted derogations under Article 27 of Directive
2003/55/EC.

Article 17

Entry into force

This Regulation shall enter into force on the 20th day
following its publication in the Official Journal of the European
Union.

It shall apply from 1 July 2006 with the exception of the
second sentence of Article 9(2), which shall apply from
1 January 2007.

This Regulation shall be binding in its entirety and directly
applicable in all Member States.

Done at Strasbourg, 28 September 2005.

For the European Parliament
The President
J. BORRELL FONTELLES

For the Council
The President
D. ALEXANDER

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ANNEX

GUIDELINES ON

1.

Third party access services,

2.

Principles underlying the capacity allocation mechanisms, congestion management procedures and
their application in the event of contractual congestion, and

3. Definition of the technical information necessary for network users to gain effective access to the
system, the dµefinition of all relevant points for transparency requirements and the information to be
published at all relevant points and the time schedule according to which this information shall be
published

1.

Third party access services

(1)

Transmission system operators shall offer firm and interruptible services down to a minimum period of one day.

(2) Harmonised transportation contracts and common network codes shall be designed in a manner that facilitates
trading and re‑utilisation of capacity contracted by network users without hampering capacity release.

(3)

Transmission system operators shall develop network codes and harmonised contracts following proper
consultation with network users.

(4)

(5)

Transmission system operators shall implement standardised nomination and re‑nomination procedures. They
shall develop information systems and electronic communication means to provide adequate data to network
users and to simplify transactions, such as nominations, capacity contracting and transfer of capacity rights
between network users.

Transmission system operators shall harmonise formalised request procedures and response times according to
best industry practice with the aim of minimising response times. They shall provide for on‑line screen based
capacity booking and confirmation systems and nomination and re‑nomination procedures no later than 1 July
2006 after consultation with the relevant network users.

(6)

Transmission system operators shall not separately charge network users for information requests and
transactions associated with their transportation contracts and which are carried out according to standard rules
and procedures.

(7)

Information requests that require extraordinary or excessive expenses such as feasibility studies may be charged
separately, provided the charges can be duly substantiated.

(8)

(9)

Transmission system operators shall cooperate with other transmission system operators in coordinating the
maintenance of their respective networks in order to minimise any disruption of transmission services to
network users and transmission system operators in other areas and in order to ensure equal benefits with
respect to security of supply including in relation to transit.

Transmission system operators shall publish at least once a year, by a predetermined deadline, all planned
maintenance periods that might affect network users' rights from transportation contracts and corresponding
operational
include publishing on a prompt and
non‑discriminatory basis any changes to planned maintenance periods and notification of unplanned
maintenance, as soon as that information becomes available to the transmission system operator. During

information with adequate advance notice. This shall

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maintenance periods, transmission system operators shall publish regularly updated information on the details
of and expected duration and effect of the maintenance.

(10) Transmission system operators shall maintain and make available to the competent authority upon request a
daily log of the actual maintenance and flow disruptions that have occurred. Information shall also be made
available on request to those affected by any disruption.

2.

Principles underlying capacity allocation mechanisms, congestion management procedures and their
application in the event of contractual congestion

2.1. Principles underlying capacity allocation mechanisms and congestion management procedures

(1) Capacity allocation mechanisms and congestion management procedures shall facilitate the development of
competition and liquid trading of capacity and shall be compatible with market mechanisms including spot
markets and trading hubs. They shall be flexible and capable of adapting to evolving market circumstances.

(2)

These mechanisms and procedures shall take into account the integrity of the system concerned as well as
security of supply.

(3)

These mechanisms and procedures shall neither hamper the entry of new market participants nor create undue
barriers to market entry. They shall not prevent market participants,
including new market entrants and
companies with a small market share, from competing effectively.

(4)

These mechanisms and procedures shall provide appropriate economic signals for efficient and maximum use of
technical capacity and facilitate investment in new infrastructure.

(5) Network users shall be advised about the type of circumstance that could affect the availability of contracted
capacity. Information on interruption should reflect the level of information available to the transmission
system operator.

(6)

Should difficulties in meeting contractual delivery obligations arise due to system integrity reasons, transmission
system operators should notify network users and seek a non‑discriminatory solution without delay.

Transmission system operators shall consult network users regarding procedures prior to their implementation
and agree them with the regulatory authority.

2.2. Congestion management procedures in the event of contractual congestion

(1)

In the event that contracted capacity goes unused, transmission system operators shall make this capacity
available on the primary market on an interruptible basis via contracts of differing duration, as long as this
capacity is not offered by the relevant network user on the secondary market at a reasonable price.

(2) Revenues from released interruptible capacity shall be split according to rules laid down or approved by the
relevant regulatory authority. These rules shall be compatible with the requirement of an effective and efficient
use of the system.

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(3) A reasonable price for released interruptible capacity may be determined by the relevant regulatory authorities

taking into account the specific circumstances prevailing.

(4) Where appropriate, transmission system operators shall make reasonable endeavours to offer at least parts of

the unused capacity to the market as firm capacity.

3. Definition of the technical information necessary for network users to gain effective access to the

system, the definition of all relevant points for transparency requirements and the information to be
published at all relevant points and the time schedule according to which this information shall be
published

3.1. Definition of the technical information necessary for network users to gain effective access to the system

Transmission system operators shall publish at least the following information about their systems and services:

(a)

a detailed and comprehensive description of the different services offered and their charges;

(b)

the different types of transportation contracts available for these services and, as applicable, the network
code and/or the standard conditions outlining the rights and responsibilities of all network users including
harmonised transportation contracts and other relevant documents;

(c)

the harmonised procedures applied when using the transmission system, including the definition of key
terms;

(d)

provisions on capacity allocation, congestion management and anti‑hoarding and re‑utilisation
procedures;

(e)

the rules applicable for capacity trade on the secondary market vis‑à‑vis the transmission system operator;

(f)

if applicable, the flexibility and tolerance levels included in transportation and other services without
separate charge, as well as any flexibility offered in addition to this and the corresponding charges;

(g)

a detailed description of the gas system of the transmission system operator indicating all relevant points
interconnecting its system with that of other transmission system operators and/or gas infrastructure such
as liquefied natural gas (LNG) and infrastructure necessary for providing ancillary services as defined by
Article 2(14) of Directive 2003/55/EC;

(h)

information on gas quality and pressure requirements;

(i)

the rules applicable for connection to the system operated by the transmission system operator;

(j)

any information, in a timely manner, on proposed and/or actual changes to the services or conditions,
including the items listed in points (a) to (i).

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3.2. Definition of all relevant points for transparency requirements

Relevant points shall include at least:

(a)

all entry points to a network operated by a transmission system operator;

(b)

the most important exit points and exit zones covering at least 50 % of total exit capacity of the network
of a given transmission system operator, including all exit points or exit zones covering more than 2 % of
total exit capacity of the network;

(c)

all points connecting different networks of transmission system operators;

(d)

all points connecting the network of a transmission system operator with an LNG terminal;

(e)

all essential points within the network of a given transmission system operator including points
connecting to gas hubs. All points are considered essential which, based on experience, are likely to
experience physical congestion;

(f)

all points connecting the network of a given transmission system operator to infrastructure necessary for
providing ancillary services as defined by Article 2(14) of Directive 2003/55/EC.

3.3.

Information to be published at all relevant points and the time schedule according to which this information should be
published

(1) At all relevant points, transmission system operators shall publish the following information about the capacity
situation down to daily periods on the Internet on a regular/rolling basis and in a user‑friendly standardised
manner:

(a)

the maximum technical capacity for flows in both directions,

(b)

the total contracted and interruptible capacity,

(c)

the available capacity.

(2)

(3)

For all relevant points, transmission system operators shall publish available capacities for a period of at least 18
months ahead and shall update this information at least every month or more frequently, if new information
becomes available.

Transmission system operators shall publish daily updates of availability of short‑term services (day‑ahead and
inter alia, on nominations, prevailing contractual commitments and regular long‑term
week-ahead) based,
forecasts of available capacities on an annual basis for up to 10 years for all relevant points.

(4)

Transmission system operators shall publish historical maximum and minimum monthly capacity utilisation
rates and annual average flows at all relevant points for the past three years on a rolling basis.

(5)

Transmission system operators shall keep a daily log of actual aggregated flows for at least three months.

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(6)

Transmission system operators shall keep effective records of all capacity contracts and all other relevant
information in relation to calculating and providing access to available capacities, to which relevant national
authorities shall have access to fulfil their duties.

(7)

Transmission system operators shall provide user‑friendly instruments for calculating tariffs for the services
available and for verifying on‑line the capacity available.

(8) Where transmission system operators are unable to publish information in accordance with paragraphs 1, 3 and
7, they shall consult with their relevant national authorities and set up an Action Plan for implementation as
soon as possible, but not later than 31 December 2006.