CAPACITY ALLOCATION and CONGESTION MANAGEMENT

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CAPACITY ALLOCATION and CONGESTION MANAGEMENT

• Outline of the  Capacity paper  as proposed by
  CEER Gas Working Group, on 03/05/02

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different levels of congestion different
mechanisms to allocate capacity

• no congestion
• congestion or contractual congestion level
  of firm capacity demand exceeds the useful
  capacity
• saturation or physical congestion level of
  firm capacity use that equals or exceeds the
  useful capacity.

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general requirements

• no discrimination (cfr vertically integrated cy)
• no confusion between captive and eligible market
  segment
• no prolongation of contracts
• to offer services separately (flexibility,
  storage, LNG)
• secondary market (and exchange market)
• capacity market for the day ahead.

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congestion management

• when physical congestion market based
  allocation system (auctions)
• when contractual congestion anti-hoarding
  mechanisms
• avoiding perverse arbitrage between regulated
  primary market and non-regulated secondary
  market.