The Third Package requires the development of European-wide Network Codes.
The goal is for these network codes (NCs) to underpin the delivery of a pan European electricity and gas market. The codes will form a legally binding set of common technical and commercial rules and obligations that govern access to and use of the European energy networks.
The Commission for Energy Regulation (CER) is working with the Utility Regulator of Northern Ireland (UR) and Ofgem on the implementation of various trading rules to support greater integration of the gas market.
The focus of the regulators and transmission system operators in Ireland and Britain is currently on the implementation of gas network codes. These codes will incorporate Capacity Allocation Mechanisms (CAM), Gas Balancing, Transmission Tariff Structures and Interoperability.
The Capacity Allocation Mechanism (CAM) Code applies from 1 November 2015. The CAM Network Code governs how gas network capacity is sold at interconnection points (IP) between neighbouring Member States (MS) and aims to further integrate the EU market and increase competition and liquidity.
The Moffat IP constitutes an IP between two regulated natural gas pipeline systems, the National Grid System in Great Britain and the BGE system in Ireland.
Currently 96% of Ireland’s gas demand and 100% of Northern Ireland demand is met through this IP. A gas pipeline owned by PTL (NI TSO which also acts as agent for Northern Ireland shippers) connects the Northern Ireland gas system to the BGE pipeline at Twynholm - a point located further down from Moffatt in Scotland.
It is understood that it has been agreed between National Grid and BGE that BGÉ as the owner of the interconnector pipeline up to Moffat, will interface with National Grid (NG) in regard to CAM.
Looking to the future, it is essential that BGE as the TSO operating the interconnector should be responsible for the management of gas flows to Ireland. This role is critical to ensure security of Ireland’s gas and electricity supply.