Royal Decree 949/2001, of 3 August, which regulates the access of third parties to gas installations and establishes an integrated economic system of the natural gas sector, develops the basic lines that must contain The Technical Management Standards of the Natural Gas System and its Article 13 (1) established that the System Technical Manager (GTS), in collaboration with the other subjects involved, will develop a proposal for the Technical Management Standards of the System, which will elevate the Minister of Economy for approval or modification.

In compliance with the above, the Minister of Industry, Tourism and Commerce issued Order ITC/3126/2005 of 5 October, approving the Technical Management Standards of the Gas System. That order, in its final provision, empowers the Directorate-General for Energy Policy and Mines to take the necessary measures for the implementation and enforcement of the order, in particular to approve and amend the detailed protocols. of the Technical Management Standards and other requirements, rules, documents and operating procedures established to enable the correct operation of the system.

Order ITC/3126/2005 of 5 October, in the Technical Management Standard NGTS-12, paragraph 12.2, establishes the creation of a Working Group for the updating, revision and modification of the rules responsible for the submission for approval by the Directorate-General for Energy Policy and Mines, for proposals for updating, reviewing and amending the rules and protocols for the management of the gas system.

On 4 August 2015 was published in the "Official State Gazette", Circular 2/2015, of 22 July, of the National Commission of the Markets and Competition (CNMC), which sets out the rules for the balance sheet in the network transport of the gas system, which provided for in paragraph 7 that the GTS shall establish before 1 January 2016 the procedures for establishing the state of the transport network, including parameters and technical values determining the operation normal of the transport network, as well as the parameters which define the existence of risk of operation other than normal operating conditions or which require balancing services and which require a balancing act by the Technical System Manager.

Based on the above, dated April 15, 2016, received by the Chair of the Working Group of the Monitoring Committee of the Gas System for the updating, revision and modification of the standards and protocols of the Technical management of the Gas System, proposals for the drafting of new detailed protocols on parameters and technical values that determine the normal operation of the network and the use of local products or balancing services.

According to the provisions of article 7.35 of Law 3/2013, of 4 June, of the creation of the CNMC, the motion for a resolution was referred to the CNMC on 26 July 2016 for the preparation of the mandatory report, which was adopted by the Regulatory Supervisory Board on 22 September and for which the arguments put forward during the hearing procedure were taken into consideration.

In its virtue, this General Address resolves:

First.

The PD-18 detail protocol "Technical parameters determining the normal operation of the transport network and the carrying out of balancing actions in the PVB by the System Technical Manager", included in Annex I of the present resolution.

Second.

This resolution shall take effect on 1 October 2016.

Transitional disposition.

Until the first update of the parameter values is performed, as set by this protocol, the following values are in effect:

• Stock reference value in the transport network (VR): 2,850 GWh.

• Maximum Operating Limit (LMaxOp): 2,997 GWh.

• Minimum Operating Limit (LMinOp): 2,703 GWh.

Against this resolution, and in accordance with the provisions of Articles 107 et seq. of Law 30/1992 of 26 November 1992 on the Legal Regime of Public Administrations and the Common Administrative Procedure, an appeal may be brought before the Secretary of State for Energy within one month of the day following that of its publication.

Madrid, September 28, 2016. -Director General of Energy Policy and Mines, Teresa Baquedano Martin.

ANNEX I

PD-18 Detail Protocol

Technical PArameters that determine the operation of the transport network and the realization of balance actions in the pvb by the system technical manager

1. Object.

The object of this detail protocol is to define the values and methodology of calculation of the transport network parameters necessary to identify its operational status, to manage the operational balance of the network and to Performing balancing actions on the Balance Virtual Point (PVB) by the System Technical Manager (GTS).

2. Scope of application.

This protocol applies to the GTS, which will be responsible for calculating the specific values of the parameters and technical variables that determine the normal operation of the transport network and for carrying out balancing actions in the PVB to maintain the network within the normal operating ranges.

3. Level of stock in the transport network.

The indicator that summarizes the balance of pressures at the points of the transport network, and therefore its operational status, will be the level of stock in the network.

To manage the level between inputs and outputs in the transport network within the margin of minimum warranty pressures that mark the system's technical management rules at all connection points and maximum pressure Design in the pipeline shall identify the limits of the level of stock in the transport network within which the network is operated in a normal situation, without affecting the flows of inputs and outputs of the system and without putting the safety at risk supply.

The following stock limits are defined in the transport network:

a) Maximum allowable limit (LMaxA): It is the volume of stocks above which an overpressure exists in an area of the network that can limit and even impede the flow of gas input at some point of access to the system.

This limit will be calculated by the GTS by analyzing hydraulic simulations of low-demand scenarios and high network pressures. The GTS shall give access to the information and parameters used in the simulations in order for the calculations to be replicable by anyone who requests it.

b) Minimum allowable limit (LMinA): It is the volume of stocks below which a breach of the minimum guarantee pressures established in the technical management rules of the system can occur.

This limit will be calculated by the GTS by analyzing hydraulic simulations of high demand scenarios and low network pressures. The GTS shall give access to the information and parameters used in the simulations in order for the calculations to be replicable by anyone who requests it.

c) Demand Variability Band (BVD): It is the cumulative deviation of demand from its daily average value. It shall be calculated as the maximum cumulative intra-day change in demand with respect to its average time value and shall be obtained by statistical means, using actual hourly data from the previous year and differentiating the conventional demand from the source of combined cycles.

d) Maximum Operating Limit (LMaxOp): It is the value obtained by subtracting the value of the Maximum allowable Limit from the Demand Variability Band.

LMaxOp = LMaxA-BVD.

e) Minimum Operating Limit (LMinOp): This is the value obtained by adding to the value of the Minimum allowable Limit the Demand Variability Band.

LMinOp = LMinA + BVD.

The transport network shall be considered to be within the normal operating conditions when the level of gas stocks in that network is between the LMaxOp and LMinOp limits.

4. Stock bands on the transport network.

The following natural gas stock bands are defined in the transport network, which must always be between the LMaxOp and LMinOp limits:

a) Stock Index (BI) Band: When the stock level is at this level, the GTS will not perform any balancing actions.

(b) Stock surveillance band (BV): Where the stock level is within the limits of the band BV, the GTS may perform the necessary balancing operations to prevent stocks from reaching the band. BA or to bring the stock level to the level of the BI band. In case of action, the GTS should consider the following parameters:

• Current level of stock.

• Forecast of future stock level developments.

• Liquidity and price level of the Organized Gas Market.

c) Stock Alert Band (BA): When the stock level is within this range, the GTS will have to perform the necessary balancing operations to drive again the stock level of the stock. transport network to the BIs or BV bands.

5. The stock level reference value in the transport network.

The transport network (VR) stock reference value is the value of the stock level that is at the midpoint of the BN band and will be the reference that the GTS will use in its ongoing management of the system operation.

6. Publication of the expected aggregate imbalance.

The GTS will publish the volume of gas available in the transport network at the beginning of each gas day and the volume expected to be available at the end. The volume of gas expected to be available at the end of the gas day will be updated every hour throughout that day.

In addition, when the GTS needs to make purchase-sale offers on the PVB in the organized market, it will communicate it to the sector at least one hour in advance through publication on its website and on the website of the organized market.

7. Calculation of the parameters.

In accordance with the principles and rules set out in this Protocol, the GTS shall, after public consultation, develop a procedure for the calculation of the parameters defined therein. This procedure shall be published on its website, including the supporting memory of the website. In addition, it will forward to the General Directorate of Energy Policy and Mines and to the National Commission on Markets and Competition, the procedure and the supporting memory, together with all the information used for the development of the aforementioned procedure.

The procedure will be reviewed every two years, and if necessary, modified by the same procedure above, to more accurately reflect the storage capacity of the transport network that allows for an operation. normal.

The System Technical Manager will update the parameter values each time the transport network conditions make it necessary to modify them and at least in the following cases:

(a) Twice a year, after the end of the winter/summer period, so that the data on historical demand patterns for the last corresponding period can be used, as well as the forecasts of the demand patterns for the next winter/summer campaign. The new securities will take effect on April 1 and October 1 of each year.

b) Each time the infrastructure connection to the transport network is to be made, involving an increase of at least 2% of the network storage capacity.

The new securities will be published by the GTS on its website with a prior one month of its entry into force. In order for the calculations to be replicable, the GTS will give access to the non-confidential information used in the calculations to any user on the system requesting it.

In addition, each time the GTS updates the parameters, it will send a supporting technical report to the Directorate General for Energy Policy and Mines and to the National Commission on Markets and Competition, including the entire information that supports updates, and in particular, the data used in the simulations performed and the gas flow scenarios and transport facilities used.