ERGEG to monitor GGPLNG

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ERGEG to monitor GGPLNG Further analysis of the
tariffs applied to regas TML in EU
LNG Workshop, March 13th 2009
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ERGEG to monitor GGPLNG
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GGPLNG

• GLE contributed to the development of the GGPLNG
• July 2007, ERGEG launched a pre-consultation
• ? July/September 2007 comments by GLE
• December 2007, ERGEG launched a public
  consultation
• ? January 2008 comments by GLE
• GGPLNG (May 2008)
• will not go beyond the Directive 2003/55/EC in
  creating or restricting TPA rights
• non-binding guidelines

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GGPLNG

• GLE considers that TPA should not be specified
  (harmonised) beyond the level of general
  principles.
• This level of regulation also allows that
• each specific business model is preserved and
• that existing long-term contracts are not
  jeopardized.

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Monitoring GGPLNG

• GLE is willing to collaborate with ERGEG to
  monitor the GGPLNG. (see also XV Madrid Forum)
• However, GLE would like to remind that the GGPLNG
  are applied on a voluntary basis.
• GLE expects a positive result of the monitoring,
  but only if it leads to further discussion and
  consensus-building on what provisions of the
  GGPLNG are currently applied by the regulated
  LSOs.

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Monitoring GGPLNG

• Monitoring results, should be analysed
  considering
• the regulatory framework applied in each country,
• the technical characteristics, and
• specific business models of the existing LNG
  terminals
• in order to avoid
• an unstable regulatory framework that would
  hinder the LNG market development
• any detrimental situation of the market
• technically inapplicable requests
• to affect current or future investments.

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Monitoring GGPLNG

• Questionnaire on GGPLNG by ERGEG (February 2009)
• welcomed and supported by GLE
• submitted by regulated LSOs
• first step in monitoring process
• general overview
• GLE will be happy to contribute to the analysis
  as well and, where necessary, give further
  explanation.

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Further analysis of the tariffs applied to regas
TML in EU
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Tariff analysis

• Comparing LNG charges is a complex task due to
  the fact that tariffs applied by LSOs differ in
• levels of service
• infrastructures
• government/Regulatory frameworks
• tariff structure/methodologies
• GLE agrees with MVV conclusions that a meaningful
  comparison would be very difficult.
• GLE believes that comparison of tariffs levels
  would not be a good proxy of cost efficiency.

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Thank you for your attention!