3. Description of the dataset
3.4. Gas: Countries/zone(s) identified
Belgium
In terms of commodity cost and transmission cost, no regional differences are observed in Belgium. The same commodity prices on the gas market are available to all consumers. Belgium counts only one Transmission system operator: Fluxys Belgium. About 230 clients are directly connected to the transmission system, and profile G2 is assumed to be part of this group of directly connected clients.18
We take as assumption that profile G1 is a T6 category consumer on the distribution grid (T619). The Flemish region has 12 DSOs20 for gas that are operated by Eandis and Infrax, whilst in the Walloon region (7 DSOs) the distribution grid is mainly operated by ORES and RESA. We will present a weighted average of the distribution tariffs in each of the regions, based on the volume of gas distributed on each of their grids. The DSO for gas in the Brussels region is Sibelga.
DSOs of the Flemish
18 None of these clients directly connected to the transport grid is located in the Brussels Capital Region.
19 For Sibelga, the DSO of the Brussels Region, the category in question is T5 due to the fact that the former national AMR categories T5 (<10 GWh/year) and T6 (>10 GWh/year) were regrouped in accordance between Sibelga and their regional regulator Brugel.
20 Enexis active in the Belgian enclave of Baarle-Hertog, is not considered in the study.
21 Figures from VREG
DSOs of the Walloon
region Gas distributed MWh
(2016)22 Market share
Ores Hainaut 7.319.140 37,25%
RESA 5.857.040 29,81%
Ores Brabant wallon 2.663.370 13,55%
Ores Mouscron 1.415.580 7,20%
Ores Namur 1.179.770 6,00%
Gaselwest 734.720 3,74%
Ores Luxembourg 479.790 2,44%
Total 19.649.410 100%
In terms of taxes and levies, however, some (very) small differences exist between regions. This is why we present the results for Belgium in the same way as we did for electricity: a separate analysis for Wallonia, Flanders and the Brussels capital region.
Germany
The only component of the gas price for our profile under review that does not show any regional differences is the taxes and levies component.
In terms of commodity price, there are two market areas in Germany: Gaspool and Netconnect Germany (NCG) and eleven different transmission system operators.
Each of them is mainly active in one market area, but some of them are active in both.
1. In the Gaspool area, the following operators are active: Gascade Gastransport, GTG Nord, ONTRAS Gastransport, Nowega and Gasunie.
2. NetConnect Germany (NCG) counts the following TSOs in its area:
Bayernets, Fluxys TENP, GRTgaz, Terranets BW, Thyssengas and Open Grid Europe.
Given the fact that we observe an advanced form of convergence between the Gaspool and NCG-market prices, and given the amount of different TSOs, we will present one single result for Germany. In terms of commodity, we will present the average of Gaspool and NCG-prices. With regards to network costs, we will base the
22 Figures from VREG
evaluation of the tariffs for profile G2 on the average of the exit tariffs of 11 TSOs serving directly connected industrial clients.
As our profile G1 is directly connected to the distribution grid it will pay a distribution cost and therefore its network cost will be based upon the distribution tariffs imposed by the DSOs. As there are over 800 different DSOs in Germany23 we will present an average of the distribution tariffs of two large rural and two large urban DSOs from each of the two market areas, similar to what has been done for the electricity market.
France
France has two different market areas for gas and two different transmission system operators.
As shown on the map below, the two transmission system operators (TSO) are:
1. GRTGaz, operating respectively in the North of the country and in the central and South-Eastern regions.
2. TIGF, concentrated on the South-Western region.
Within France, there are two different gas markets: PEG Nord and TRS (Trading Region South). TRS exists since 1st of April 2015 and is the result of a merger between the PEG Sud-market (the Central and South-Eastern regions that are operated by GRTGAZ) and the South-Western region operated by TIGF.2425
Although there is one common market zone in the South of France, there are still two separate physical networks: GRTGaz operates the PEG Sud area and the TIGF operates the transport grid in the South-West. As we observe substantial differences between the two different transport tariffs and between the commodity prices in the two market areas, we will analyse the French result by presenting three different price zones: GRTGaz/Nord (representing about 75% of gas consumption in France),
23 From Distribution networks to smart Distribution systems: rethinking the regulation of European electricity DSOs, European University Institute, THINK paper topic 12, Final report, 2013, pgs. 12-13.
24 https://www.gazprom-energy.fr/gazmagazine/2015/04/trs-le-peg-sud-et-le-tigf-ont-fusionne/
25 http://www.u-tech.fr/actualites/coupuresgaz2013
GRTGaz/Sud (about 20%) and TIGF (about 5%)26.In terms of distribution, GrDF (Gaz Réseau Distribution France) distributes 96% of all gas27 in France.
The Netherlands
The Netherlands counts one single gas market (TTF), where all gas entering the Dutch transport system is being traded. The TTF was established in 2003 in order to concentrate trade of gas in one marketplace. Furthermore, the Dutch gas market does not impose any regional taxes on gas, and has one Transmission System Operator: Gasunie Transport Services. About 300 industrial clients are directly connected to the gas transmission grid, and we assume profiles G1 and G2 are part of this group.28 For both profiles we will hence, logically, present the Netherlands as one single zone.
United Kingdom
The United Kingdom will be presented as one single zone for gas in this study (leaving out Northern Ireland). There is one single gas market (NBP: National Balancing Point), there are no regional taxes, and there is one single gas transmission system operator, National Grid Gas plc.
On top of the transmission system operator, there are eight gas distribution networks. These eight networks are owned and managed by the following companies:
i. National Grid Gas (East Midlands, West Midlands, North West England and East of England);
ii. Northern Gas Networks (North East England including Yorkshire and Northern Cumbria);
26 CRE, Marchés de gros: Observatoire des marchés de l’électricité, du gaz et du CO2, 3ième trimestre 2014.
27 http://www.cre.fr/reseaux/infrastructures-gazieres/description-generale#section3
28 Gasunie Transport Services is obliged by the Gas Act (Article 10, paragraph 6b) to provide a direct connection point when the applicant has a flow rate greater than 40 m³(n) per hour (equal to 350.400 m³ per year).
iii. Wales & West Utilities (Wales and South West England);
iv. SGN (Scotland and Southern England including South London).
In addition, there are a number of smaller networks owned and operated by Independent Gas Transporters, which are not taken into account.