ENTSOG Annual Report 2015

 Implementation Reports

REPORT ON IMPLEMENTATION OF BALANCING NETWORK CODE (BAL NC)

Commission Regulation (EU) 312/2014 from 26 March 2014 established a Network Code on Gas Balancing of Transmission Networks (BAL NC) and came into force on 16 April 2014. This regulation applies to balancing zones within the borders of the EU. It establishes rules for nat- ural gas balancing, including network-related rules on nomination procedures, imbalance charg- es, settlement processes associated with daily imbalance charges, and provisions on operation- al balancing.

After the Forum request to follow up on the ear- ly implementation status of BAL NC at the 25th Madrid Forum (6–7 May 2014), ENTSOG and ACER cooperated on and published two joint ACER/ENTSOG reports outlining the early im- plementation status. In its first implementation report, ENTSOG reported on its monitoring of the implementation of the BAL NC as of 1 Octo- ber 2015, following Article 8 (8) of Regulation (EC) No 715/2009. BAL NC is applicable as of 1 October 2015 with the possibility to postpone its application until 1 October 2016. Instead of full implementation, interim measures can be implemented for up to five years (i. e., until 16 April 2019) from the Code’s entry into force. Such measures would have to be consistent with the options laid down in Chapter X of the Code and with the Code’s general principles. All of the other provisions in BAL NC shall be implemented by 1 October 2015. The ENTSOG report reflects the individual im- plementation practices of respective countries, including indicative timelines for implementing provisions of the BAL NC. Seven out of ten countries reported implement- ing the BAL NC by a deadline of 1 October 2015. Three countries reported having most of the provisions in place. Seven out of 11 countries that had applied for putting interim measures in place until no later than April 2019 reported implementing them; two respondents partially implemented the planned interim measures by 1 October 2015 while two other countries are planning to imple- ment them in 2016. Five respondents stated all other provisions are in place while six other countries reported par- tial implementation as of 1 October 2015.

The five countries applying for a transitory period as of 1 October 2016 have partially implemented the BAL NC provisions, and the implementation process is on-going. One coun- try indicated an earlier implementation date of 1 July 2016. TSOs and NRAs have made implementation progress regardless of the fact that some coun- tries still face low market liquidity and will re- quire time to create a functioning wholesale market that enables network users and TSOs to achieve balance in a market-based manner.

Image courtesy of Fluxys Belgium S.A.

ENTSOG Annual Report 2015 |

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