Network Codes and Guidelines

Regulation (EU) 2024/1789 requires European-wide Network Codes (NC) to be developed by ENTSOG for cross-border network issues and market integration issues.

The development phase of the NCs (as well as the EC Guidelines) as required by Regulation (EC) No 715/2009 is completed. ENTSOG is now required to monitor and analyse the implementation of NCs and the EC Guidelines and their effect on the harmonisation of applicable rules aimed at facilitating market integration. As required, ENTSOG will also continue to actively participate in the further development of the NCs and the Guidelines through the Functionality Process and also the formal amendment process, as required.

ENTSOG has published a Glossary of existing Definitions from Directive 2009/73/EC, Regulation (EC) No 715/2009 and from all the existing the NCs which form integral parts of this Regulation: Capacity Allocation Mechanisms NC (CAM NC), Balancing NC (BAL NC), Interoperability and Data Exchange NC (INT NC) and Tariff NC (TAR NC).

For further information, please contact:

Claude Mangin - Director, Market

Claude.Mangin@entsog.eu

Capacity Allocation Mechanism Network Code

The CAM NC is the Commission Regulation (EU) 2017/459 of 16 March 2017 establishing a network code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013. The CAM NC applies to interconnection points (‘IP’) and may apply to entry and exit points from/to third countries.

The first version of the CAM NC of 2013 had been in place until the amended CAM NC came into force on April 2017and repealed it.

In addition to the rules on allocating existing capacity from the first version of the CAM NC, the amended CAM NC includes rules for determining and marketing incremental capacity. It also contains provisions for a capacity conversion service of unbundled capacity products as well as for harmonising the main terms and conditions for bundled capacity products. New requirements for offering interruptible capacity and new auction dates and rules for long-term capacity products are also introduced.

Balancing NC

The BAL NC is the Commission Regulation (EU) No 312/2014 of 26 March 2014 establishing a Network Code on Gas Balancing of Transmission Networks. The BAL NC applies to balancing zones within the borders of the EU.

The BAL NC sets gas balancing rules, including network-related rules on nomination procedures, imbalance charges, settlement processes associated with daily imbalance charges and provisions on operational balancing.

Tariff NC

The TAR NC is the Commission Regulation (EU) 2017/460 of 16 March 2017 establishing a network code on harmonised transmission tariff structures for gas. The TAR NC applies to all points on the transmission network except for some rules that by default apply only to IPs. These rules may apply to entry and exit points from/to third countries.

The TAR NC contributes to achieving tariffs, or methodologies used to calculate them, which are transparent, non-discriminatory, facilitate efficient gas trade and competition, reflect the actual costs incurred, avoid cross-subsidies between network users, provide incentives for investment etc.

Interoperability and Data Exchange NC

Commission Regulation (EU) 2015/703 established a network code on interoperability and data exchange rules in 2015.

An appropriate degree of harmonisation in technical, operational and communication areas is key to overcome potential barriers to the free flow of gas in the Union, thus hampering market integration. The network code on interoperability and data exchange rules (INT NC) enables the necessary harmonisation of interconnection agreements, gas quality management and common data exchange solutions, therefore leading to effective market integration. For that purpose and for facilitating cooperation between adjacent transmission system operators, ENTSOG provides assistance for the harmonised implementation of the INT NC and develops common network operation tools (CNOTs) for normal and emergency conditions.

Congestion Management Procedure Guidelines

The CMP Guidelines are established by the EC Decision of 24 August 2012 on amending Annex I to Regulation (EC) No 715/2009 regarding congestion management procedures in the event of contractual congestion. The CMP Guidelines apply to IPs.

The CMP Guidelines are aimed at resolving the events of contractual congestion by bringing unused capacity back to the market to be reallocated in the course of the regular allocation processes.

Transparency Guidelines

The energy market liberalisation process, aimed at securing a well-functioning, open and efficient internal market in gas, has significantly changed the gas transmission business and increased the need for transparency. In this respect, specific obligations for gas TSOs have been introduced through Regulation (EU) 2024/1789, which defines the basic transparency rules. The network codes have been developed to provide rules and procedures to reach an appropriate level of harmonisation towards efficient gas trading and transport across gas transmission systems in the EU, increasing data publication requirements.

Functionality Process

The established Joint Functionality Process, co-managed by ENTSOG and ACER and supported by the European Commission, is aimed at reaching commonly recommended solution(s) on implementation and operational issues within the existing Network Codes and Guidelines. It provides stakeholders a possibility to raise and discuss issues as well as an opportunity to be involved in developing solutions, which aim at commonly recommended non-binding guidance.

The Gas Network Codes Functionality Platform (www.gasncfunc.eu) enables stakeholders to raise implementation and operation issues via the web interface and gives an overview of all reported issues and their status.

NC Implementation Monitoring Group

In the past years, ENTSOG has participated at the Network Code Implementation and Monitoring Group (NC IMG), a forum for high-level strategic coordination, with the European Commission, ACER, and the European Network of Transmission System Operators for Electricity (ENTSO-E). This group oversaw the implementation and implementation monitoring of electricity network codes and gas network codes in the EU.

Going forward, ENTSOG aims to continue transparent dialogue and effective information exchange between EC, ACER and the ENTSOs as well as ENNOH on the integration of the European electricity, gas and hydrogen markets and the important topics related to legislative files - for example, “Fit for 55” initiative and the Net Zero Industry Act. This dialogue will help to reinforce the participation of the renewable energy market and drive the investments necessary to provide security of supply.

NC summaries and glossary

ENTSOG has prepared information leaflets to provide concise summaries of Gas Network Codes and Guidelines. These include easy to understand infographics.

The Glossary of Definitions which lists all the terms defined in the Third Energy Package or a Network Code are also provided, with definitions listed in alphabetical order and include references to where they are defined for ease of use.