EASEE pres 170502 1

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EASEE-gas
European Association for the Streamlining
of Energy Exchange - gas
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EASEE-gas

• Why the need ?
• The US example
• The European project

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WHY THE NEED ?
Before liberalisation
Few participants, stable and long lasting
relationships
After liberalisation
Many players, short lived and fast changing
relationships Hence need to streamline
transactional processes
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BUNDLED BUSINESS MODEL
Producer
Gas Merchant
LDC
End user
physical
contractual
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GENERIC CORE BUSINESS MODELLiberalised market
commodity
commodity
Producer
Trader
shipping
Title transfer
hand over
capacity
tittle transfer
capacity
Transporter
Shipper
commodity
hand over
shipping
title transfer
commodity
End user
supply base management
Supplier
physical
contractual
notional
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GENERIC BUSINESS MODELLiberalised market
Non gas services
Gas services
Core Business Partners
Storage Terminal Hub etc.
Legal Finance Software etc.
physical
contractual
notional
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INDICATIVE VOLUME CHAIN
0-300
0-300
Ship/Trans
Traders
Producers
50
100
100
50
Suppliers
Storage
End Users Large accounts
50
10-20
Retail Suppliers
Ship/DSO
50
End Users Res. Dom.
50
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INDICATIVE VALUE CHAIN
Ship/Trans
Traders
Producers
120-140
10-30
10
110
100
100
120-140
Storage
Suppliers
End Users Large accounts
130-150
0-50
10
Ship/Trans
Suppliers
170-290
50-100
50-100
End Users Res. Dom.
220-390
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THE US EXAMPLE Gas Industry Standards
Board GISB
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THE US EXAMPLE Gas Industry Standards Board
created in 1994 with a mission to
develop and promote standards to simplify and
expand electronic communications and to simplify
and streamline business practices that will lead
to a seamless market place for natural gas
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THE US EXAMPLE GISB structure

• segments
  members
• producers
  12
• pipelines
  44
• distributors
  28
• end users
  17
• services (incl. marketers) 49
• Total 150
• government (observer) 1
  

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AMERICAN (GISB) BUSINESS MODEL
Producer
Marketers other services
Pipelines
LDC
End user
physical
contractual
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THE US EXAMPLE GISB structure

• Board of Directors
• Advisory Committee
• Executive Committee
• - Working groups
• 3 staff

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THE US EXAMPLE GISB General Policies

• Balanced voting rules that
• protect minorities
• promote consensus
• Open to all
• Partnership with government
• Driven by volunteers

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THE US EXAMPLE GISB achievements

• 7 years of existence
• 400 business practices established
• 40 transactions standardised
• 5 model agreements
• Transformed to NAESB to include power industry

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THE EUROPEAN PROJECT
Supported by EU and by CEER Created through
joint Task Force
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THE EUROPEAN PROJECT
Task Force participants

• EFET
• OGP
• Eurogas
• GTE
• Edig_at_s
• Eurelectric
• GEODE

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THE EUROPEAN PROJECT
Task Force remit

• To define the principles
• To set up the organisation
• To adapt US example to liberalised European gas
• scene
• To define relationship with other organisations
• Started October 2001
• Creation of EASEE-gas March 14, 2002

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THE EUROPEAN PROJECT
EASEE-gas mission statement

• To develop and promote common practices to
• simplify and streamline business processes
• between the stakeholders that will lead to an
• efficient and effective European Gas Market

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THE EUROPEAN PROJECT
EASEE-gas basic principles

• Open, independent organisation
• Full members vote and fee
• Associate members no vote, no fee
  
• Driven by volunteers
• Financed through membership fees

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EASEE-GAS

• Status
• Membership
• Organisation
• Working Groups

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STATUS

• Created 14.03.2002 by 6 founding members
• Offices at Paris, France
• Board picked from the Task Force
• House Rules final draft
• AFG provides administration support

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MEMBERSHIP

• 17 full members
• 3 associate members
• Membership recruitment campaign
• being launched

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FULL MEMBERS

• Companies or divisions with separate
• accounts
• Can join through one or more segments
• Annual fee EUR 1500 per segment

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EASEE-gas SEGMENTS

• Producers
• Traders Shippers
• Suppliers
• Retail suppliers
• End Users

• Transporters
• Distribution System Operators
• Service providers

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ASSOCIATE MEMBERS

• Government agencies
• Regulators
• Not-for-profit organisations
• Consumer groups
• Individuals et al.

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ORGANISATION
Full Members by segment
Associate Members
Executive Committee
Board of Directors
Advisory Panel
General Manager Staff
Working Groups
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BOARD OF DIRECTORS
Composition

• 8 directors, 1 per segment
• 2 year staggered terms
• Governance issues
• Membership

Responsibilities
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EXECUTIVE COMMITTEE
Composition

• 24 members, 3 per segment
• 3 year staggered terms
• Coordination of working groups
• Vote on common business practices

Responsibilities
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EXAMPLES OF COMMON BUSINESS PRACTICES

• IT / Communication standards
• Procedures for noms, renoms, matching
• Generic agreements, eg trading, OBAs
• Harmonisation of units
• Market players codification scheme
• Glossary of gas industry terminology

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ADVISORY PANEL

• Up to 8 members appointed by the Board
• Chosen from authorities, regulators,
• consultants, industry specialists
• Advise Board and Executive Committee

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WORKING GROUPS
Ongoing

• Message standardisation and validation
• Communication

Started up

• eb XML
• Business rules
• Real Time Data Transfer
• Harmonisation of units

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MESSAGE STANDARDISATION VALIDATION
Goal
Develop and maintain Edigas protocol
Status
Operational

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COMMUNICATION
Goal
Replace current communication solutions (ISDN,
X25) by Internet Protocol
Status
Preparing to launch bid requests for VPN based
network
Issue
VPN or pure internet
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eb XML
Goal
Provide for IP friendly messages
Status
First meeting held 19/04/02

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BUSINESS RULES
Goal
Define actors, information, operational rules
Status
First meeting held 25/04/02

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REAL TIME DATA TRANSFER
Goal
To define and develop the best solution for
exchange of real time data (operator to operator,
operator to shipper, etc )
Status
First meeting held 07/05/02
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HARMONISATION OF UNITS
Goal
To adopt common / universal units for volume,
GCV, capacity, gas composition, impurities, etc
Status
Preparing for first meeting