Gas Capacity Allocation Mechanisms

In order to facilitate gas transport and gas trading across the EU, the Framework Guidelines and the associated Network Code on Capacity Allocation Mechanisms (FG and NC CAM) aim to promote and define harmonised capacity allocation mechanisms, i.e. auction procedures, and a small set of standardised bundled cross border capacity products at interconnection points between entry-exit zones. The code, taking account of general commercial and technical rules related to capacity allocation, also specifies how adjacent transmission system operators shall cooperate to facilitate the sale and usage of bundled capacity.

Based on the previous work by ERGEG since 2008, the Agency finalised and formally adopted the (pilot) Framework Guidelines on CAM on the 3 August 2011. In parallel, ENTSOG had been developing the NC CAM, extensively involving stakeholders, and submitted a first Network Code to the Agency on the 6 March 2012. A consultancy study was commissioned by the Agency at the end of 2011 to support the assessment of the Code, with a particular focus on the proposed auction design.

On the 5 June 2012, the Agency provided its Reasoned Opinion on the NC CAM proposing amendments in eleven areas. ENTSOG delivered an amended Network Code on the 17 September taking on board seven of the amendments proposed in the Reasoned Opinion.

To facilitate the process towards the adoption of the NC CAM, the Agency issued on its own initiative a Recommendation to the European Commission on the 4 October 2012, recommending the adoption of the NC CAM subject to specific amendments in the remainder areas, concerning capacity breakdown, its application to new capacity, the sale of unbundled capacity and tariff provisions.

The Commission recommended that the Agency submits the NC CAM based on a different legal basis (Article 6(9) of Regulation (EC) No 715/2009) and assured the Agency that a qualified recommendation (one with reservations and suggestions) is permitted. The Agency’s final Recommendation was issued on the 9 November 2012 along the lines of the previous recommendation.

On 15 April 2013, the ‘Committee on the implementation of common rules on the transport, distribution, supply and storage of natural gas’ delivered a positive vote on the CAM Network Code (cf. comitology register), which was published as COMMISSION REGULATION (EU) No 984/2013 in the Official Journal of the European Union on 15 October 2013. After an implementation period, most provisions of the CAM Network Code were applicable as of 1 November 2015.

During 2015, the Agency consulted twice on possible amendments to the NC CAM related to Incremental Capacity and other technical changes to the CAM network code (like auction timing and methods). On 14 October 2015, ACER sent its recommendation on the amendment to the NC CAM to the European Commission for adoption. The amendments have passed the Comitology process and resulted in the Commision Regulation (EU) 2017/459 establishing a network code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013.

More information:

Public Consultation on the Incremental Capacity Proposal PC_2015_G_02

Public Consultation on the Incremental Capacity Proposal and further NC CAM amendments PC_2015_G_05

On 14 October 2016 the Agency published a consultancy study on the 3 capacity booking platforms’ level of (early) compliance with NC CAM.

On 4 November 2015 ACER published a report on the progress made on voluntary capacity bundling at interconnection points.

On 31 May 2016 the Agency published its Annual Congestion Report, including a list specifying at which interconnection points the so-called Firm Day-Ahead Use-It-Or-Lose-It (FDA UIOLI) mechanism will have to be applied as a congestion management procedure (CMP) from 1 July 2016.

On 27 October 2016, one year after the application date of the Network Code on Capacity Allocation Mechanisms (NC CAM), the Agency published an Implementation Monitoring Report. The Report establishes that implementation is on track, but has not been delivered fully.

On 31 May 2018 the Agency published the fifth edition of the Annual Report on Contractual Congestion at Interconnection Points (including Technical Annex). The Report offers insight into the increasing application of congestion management procedures at both congested and non-congested IPs.

On 5 April 2019 the Agency published its Report on the conditionalities stipulated in contracts for standard capacity products for firm capacity and an underlying consultancy Study as required by the EU Regulation establishing a Network Code on Capacity Allocation Mechanisms in gas transmission systems.

On 28 May 2019 the Agency published the sixth edition of the Annual Report on Contractual Congestion at Interconnection Points.