According to Art. 21 Paragraph 3 Commission Regulation (EU) 2017/459 (CAM NC), the European Gas TSOs are obliged to offer a capacity conversion mechanism for their network users to enable them to convert unbundled capacities in bundled capacities. Some TSOs have already started to offer such service as an early implementation approved by their NRAs.
ENTSOG has prepared a model describing the minimum functions of the capacity conversion service (see attached document CAP0717-17 ENTSOG’s Capacity conversion model, 24 July 2017) and especially in its annex 2 the possible conversion scenarios.
However, the model leaves some discretion how to implement the conversion of the transportation contracts legally, especially how the national civil law arrangements/GT&Cs are structured to complete the conversion in a legal manner. Therefore, we as European TSOs like to propose a way, how to properly report these contractual changes under REMIT, taking into account the different possible conversion scenarios and the different national legal implementations.
Generally, there are two basic approaches regarding the reporting of a fully converted contract, depending on national implementation:
A) The original contract with unbundled capacity is modified and a new contract is reported.
The capacity amount of the old unbundled contract is reduced to zero and this reduction is reported within the REMIT reporting as a change of the existing contract.
In addition, a new (bundled) contract is reported. This bundled contract contains the whole amount of the capacity. (Please note that reporting data with the approach described in this option does not necessarily imply that a new contract has been concluded under national law.)
B) The original contract with unbundled capacity is modified.
The full conversion is done without reporting a new contract. Such a conversion of capacity is reported as a modification of the existing contract of the unbundled capacity. In this case, the following information should be updated (note that some fields are filled with the existing information):
All relevant information covering the allocation process (TRUM table 4, Data Field No 2-13) as well as information on the lifecycle reporting (TRUM table 4, Data Field No 14), on the premium price (TRUM table 4, Data Field No 21), on the specifications of bundling, and on the counter TSO (TRUM table 4, Data Field No 26).
Regarding the conversion of only part of the unbundled capacity into bundled capacity the following applies:
- The original contract is modified by reducing the capacity amount by the part of the capacity that is converted into bundled capacity (updating the information in TRUM table 4, Data Field No 15).
- The part of the capacity that is converted into bundled capacity is reported as a new contract for bundled capacity.