GTS has implemented the required CMP measures such as Surrender of Capacity (SoC), Long Term Use It Or Lose It (LT UIOLI) and Oversubscription & Buy Back (OBB). The firm day-ahead use-it-or-lose-it CMP measure is not yet implemented. In 2016 the Dutch regulator ACM will decide whether implementation is required depending on whether congestion is sufficiently resolved by the other CMP measures implemented by GTS.
Surrender of Capacity
With SoC a shipper can ask the TSO to offer his capacity on the PRISMA auction platform as if it were the TSO’s capacity. Shippers that participate in an auction will not see whether the capacity on auction is capacity surrendered by a shipper or the regular firm GTS capacity. In case the surrendered capacity is successfully re-sold via the PRISMA platform, the shipper is relieved from its payment obligations. Otherwise the shipper retains all rights and obligations of the surrendered capacity. A surrender can also be partially successful, meaning that only part of the surrendered capacity is resold. Shippers can surrender firm capacity for yearly, quarterly and monthly capacity auctions. After the auction, the surrendering shipper is informed by GTS on the status of his surrender request.
A shipper that surrenders capacity to GTS can not simultaneously offer that capacity on the secondary market. A request for surrender of capacity must be submitted at least 10 business days before PRISMA publishes the auction on their website in accordance with the auction calendar as determined by ENTSOG.
Capacity surrendered by shippers will only be sold after the available GTS capacity is sold. Application of this rule on bundled capacity can result in unbundling of a bundled capacity contract. If for instance a shipper surrenders bundled capacity and one of the TSO’s at a border point still has capacity available while the other TSO does not have capacity available, then the TSO that still has capacity available will sell its own capacity and the other TSO will sell the surrendered capacity. This results in (partial) unbundling of a bundled capacity contract.
Oversubscription & Buy Back
At cross border interconnection points with contractual congestion, GTS will offer additional firm capacity through an oversubscription & buy-back (OBB) scheme. The amount of additional firm capacity that GTS can make available by means of OBB capacity is determined per cross border IP and per auction product.
Shippers participating in an auction will not see whether the capacity offered is capacity made available through an OBB scheme or regular firm technical capacity. For the shipper there is no difference between OBB capacity and regular technical capacity.
In case contractual congestion turns into a physical congestion, GTS will take the necessary steps to remedy the physical congestion. The primary route to achieve this without affecting the capacity rights of the shipper who contracted OBB capacity is via a buy-back auction on PRISMA. This will result in shippers (re-)nominating in such a way that the physical congestion.
Long-term use-it-or-lose-it mechanisme
In accordance with the CMP requirements GTS will report the usage of a shippers contracted capacity to the Dutch regulator ACM. It is for the Dutch regulator to decide whether a shipper is obliged to surrender his capacity (how much and for which period) to GTS in order to be offered at the auction.