Vereniging Gasopslag Nederland (Netherlands Gas Storage Association) has responded to the consultation prompted by the Draft Framework Guidelines on Harmonised Transmission Tariff Structures (draft FG on Tariffs) issued by the Agency for the Cooperation of Energy Regulators (ACER). In its response, Gasopslag Nederland calls for the harmonisation of transport tariffs to and from gas storage facilities within the EU.
Gas storage provides for a substantial saving in the gas transmission network due to the fact that during peak periods, gas can be transported from the gas storage facility to the buyer rather than from the place of production (such as Russia). Gas storage facilities in Europeare relatively close to the buyer, so that a much shorter gas pipeline route can be factored in during periods of peak demand. Gas storage also improves market function by reducing peak prices. This means that buyers will benefit from lower transport costs and more stable gas prices.
Harmonisation of EU transport tariffs to and from gas storage facilities also guarantee a level playing field in the form of fairer competition between facilities in (Northwestern)Europe. The formal VGN response can be found here. Gasopslag Nederland has recruited consultancy Pöyry to help it quantify its arguments. The Pöyry report can be found here.
Framework Guidelines create the frameworks which EU network codes must meet. Once ACER has established the Framework Guidelines, ENTSOG (the European Network of Transmission System Operators for Gas) will draw up networkcodes which, following approval by the European Parliament and European Council, will take immediate effect. The expectation is that the entire process for the current draft FG on Tariffs will have been completed during the first half of 2015. Click here for information about network codes and Framework Guidelines.
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