Network Code Version 3 Network Code V3 Table of contents TABLE OF CONTENTS INTRODUCTION TO THE DOCUMENT ................................................................................................................... 1 OPERATORS .......................................................................................................................................................... 2 SECTION 1 - INFORMATION CHAPTER 1 – REGULATORY FRAMEWORK ........................................................................................................ 4 CHAPTER 2 – NETWORK AND NETWORK MANAGEMENT DESCRIPTION ..................................................... 10 CHAPTER 3 – DESCRIPTION OF SERVICES PROVIDED ................................................................................... 18 CHAPTER 4 – INFORMATION EXCHANGE PROCEDURES ............................................................................... 23 SECTION 2 - ACCESS TO TRANSMISSION SERVICE CHAPTER 5 – TRANSMISSION CAPACITY BOOKING ....................................................................................... 27 ATTACHMENT 5A METHOD TO DETERMINE TRANSMISSION CAPACITY ...................................................... 31 CHAPTER 6 – CONSTRUCTION AND MANAGEMENT OF DELIVERY AND REDELIVERY POINTS ................. 35 ATTACHMENT 6A - PROCEDURE FOR REQUESTING NEW CONNECTIONS .................................................. 38 SECTION 3 - TRANSMISSION SERVICE PROVISION INTRODUCTION TO THE SECTION ..................................................................................................................... 45 CHAPTER 7 – CAPACITY TRADING .................................................................................................................... 47 CHAPTER 8 – BOOKING, ASSIGNMENT AND RE-ASSIGNMENT ...................................................................... 49 CHAPTER 9 – BALANCING .................................................................................................................................. 51 CHAPTER 10 – GAS MEASUREMENT ................................................................................................................. 57 CHAPTER 11 – GAS QUALITY ............................................................................................................................. 70 ATTACHMENT 11A – TECHNICAL SPECIFICATION OF CHEMICAL-PHYSICAL CHARACTERISTICS AND OF THE PRESENCE OF OTHER COMPONENTS IN NATURAL GAS ............................................................ 78 CHAPTER 12 – ENTRY AND REDELIVERY POINTS PRESSURE ....................................................................... 82 SECTION 4 – SERVICE QUALITY CHAPTER 13 – SERVICE QUALITY ..................................................................................................................... 85 ATTACHMENT 13A -SERVICE QUALITY STANDARDS ...................................................................................... 93 I Network Code V3 Table of contents SECTION 5 – PLANNING CHAPTER 14 – MAINTENANCE PLANNING AND MANAGEMENT .................................................................... 95 CHAPTER 15 – OPERATIONAL COORDINATION ............................................................................................. 101 ATTACHMENT 15A - INTERRELATIONS BETWEEN OPERATORS ................................................................. 105 SECTION 6 - ADMINISTRATION CHAPTER 16 – FISCAL AND CUSTOM REQUIREMENTS ................................................................................ 107 CHAPTER 17 – INVOICING AND PAYMENT ...................................................................................................... 109 CHAPTER 18 – PARTIES’ OBLIGATIONS ......................................................................................................... 111 CHAPTER 19 – GENERAL PROVISIONS ........................................................................................................... 123 SECTION 7 - EMERGENGY CHAPTER 20 – MANAGEMENT OF SERVICE EMERGENCIES ........................................................................ 129 CHAPTER 21 – PROCEDURE FOR SWITCHING FROM STANDARD TO EMERGENCY OPERATING CONDITIONS ........................................................................................................................................... 135 SECTION 8 - NETWORK CODE UPDATE CHAPTER 22 – NETWORK CODE UPDATE ...................................................................................................... 138 GLOSSARY ......................................................................................................................................................... 144 II Network Code V3 Introduction to the Document INTRODUCTION TO THE DOCUMENT This Network Code, approved by the Authority, is aimed at guaranteeing access to the Transmission Service to those Shippers who request it, pursuant Article (24) (5) of Legislative Decree No. 164 of 23 May 2000. 1. CONTRACTUAL DISCIPLINE Notwithstanding legal provisions, the provisions of this Network Code constitute the rights and obligations of the Parties with respect to the performance of the transmission service along the Transmission Network. The Transmission System Operator and the Shipper are mutually bound to comply with the aforementioned rights and obligations, under the conclusion of the Transmission Contract. Any matters not expressly governed by the Transmission Contract shall be regulated by the the Network Code, whose provisions, since applicable, are an integral and essential part of each Contract. Should one of the provisions of this Network Code be or become impracticable, the Transmission System Operator reserves the right to replace it with a new one, as laid out in the Chapter on "Network Code Update". 1 Network Code V3 Operators OPERATORS Listed and described below, in alphabetical order, are the key "players" whose role is frequently referred to when describing the rules and processes that govern the transmission service. Their roles are not exclusive: the same operator can perform more than one task at the same time, notwithstanding the constraints provided for by the Legislative Decree Definition Description Authority The Gas and Electricity Authority (“Autorità per l'energia elettrica e il gas”), established by Law No. 481 of 14 November 1995, is an independent body that regulates and controls the provision of public services in the electricity and gas sectors. The Authority is headquartered in Piazza Cavour N. 5, Milan. End Customer or The individual or corporate entity that purchases and Customer uses Gas for its own consumption. Eligible Costumer The individual or corporate entity that is empowered, as a consequence of the Italian Legislative Decree, to underwrite supply, purchase, and sale agreements with any manufacturer, importer, distributor or wholesaler, both in Italy and abroad, and has a right of access to the system Dispatching The individual or corporate entity that provides a Gas Company dispatching service through local pipeline networks that are supplied by transmission networks, for delivery to End Customers connected to such network. Connected Operator Operator connected immediately downstream the RR Delivery Point. The following can be connected to the RR Delivery Point: End Customers; Dispatching companies; 2 Network Code V3 Operators Definition Description Other networks. Regasification The company that performs LNG regasification activities. Company Storage Company The company that provides storage services, by managing the storage concessions to which it is entitled in an integrated manner. Transmission The company that performs Natural Gas transmission Company activities. Leading Company Snam Rete Gas S.p.A. Gas The individual or corporate entity entitled to hydrocarbons Producer/Production exploration and production concessions that carries out Company activities of geophysical prospecting, production from reservoirs and commercialisation of produced Gas. Transmission Infrastrutture Trasporto Gas S.p.A performs activities of System Operator natural gas transmission and dispatching through the transmission and dispatching gas network that is managed/operated in compliance with Article (2) (t) of the Decree. Shipper The Gas system user that purchases Transmission Capacity for personal use or as a concession to Third Party through confirming the allocated capacity. 3 "Information" section Network Code V3 Chapter 1 – Regulatory Framework REGULATORY FRAMEWORK 1.1 DIRECTIVE 98/30/EC (“FIRST GAS DIRECTIVE”) ....................................................... 5 1.2 TRANSPOSING LEGISLATION: LEGISLATIVE DECREE NO.164/00 ................ 6 1.3 DIRECTIVE 03/55/EC (“SECOND GAS DIRECTIVE”) ................................................... 7 1.4 ELECTRICITY AND GAS AUTHORITY REGULATIONS ..................................... 8 1.5 FRAMEWORK FOR FREE ACCESS TO THE TRANSMISSION SERVICE: RESOLUTION NO. 137/02 ................................................................................................................ 8 1.6 TARIFF REGULATION ......................................................................................... 9 4 "Information" section Network Code V3 Chapter 1 – Regulatory Framework 1.1 DIRECTIVE 98/30/EC (“FIRST GAS DIRECTIVE”) The regulation process of the Gas market within the EU started with Directive 98/30/EC (the “First Gas Directive”), later repealed by Directive 55/2003/EC (the “Second Gas Directive”), which introduced further measures for enhancing the market