ENTSOG BAL NC Monitoring Report 2016

Daily imbalance charge calculation methodology (Art. 20)

Applicable price (Art. 22)

As part of the calculation methodology, the applicable price for the daily imbalance charge calculation shall take into account the marginal sell/buy price, weighted average price of the gas and a small adjustment. Title and locational products can only be taken into account for determining the prices. Out of 18 countries where the daily imbalance charge methodology applies, 13 countries (BE, CZ, DE, DK, ES, FR, HU, IT, LT, LU, PL (H-gas), SI and UK-GB) reported the determination of the applicable price by 1 October 2016. Two countries (EE and HR  41) ) have not implemented the provisions while two other countries (AT  42) and NL 43) ) repeated as in the previous report that the provi- sions are not applicable. Portugal have implemented partially the provi- sions of applicable price. Although a trading platform and STSPs have not been implemented yet, a default rule for derivation of weighted average price is in place, taking into account the trades at the PVB (Spanish Virtual Trading Point). According to the NRA's decision, Mibgás, S.A., operating the Spanish Trading platform at the Spanish VTP (PVB) shall be the future Market Operator in Portugal. Where interim measures are necessary the price derivation may be calculated in accordance with the interim measure report which shall substi- tute the daily imbalance charge methodology. In eight countries applying interim measures (BG, EL, IE, PL (L-gas and TGPS), RO, SE, SK, UK-NI) the price derivation is calculated in accordance with the interim imbalance charge. While Romania reported the implementation of the interim imbalance charge by 1 October 2016, Bulgaria indicated its finalisation by 1 January 2017. According to BAL NC a default rule shall be defined in case a marginal sell price and/or a marginal buy price is not available. Further details can be found in Annex V, table 5.3 .

The methodology approved by the NRA has to be published on a relevant website. 24 countries in- cluding Estonia (AT, BE, BG, CZ, DE, DK, EL, ES, FR, HU, IE, IT, LT, LU, NL, PL, PT, RO, SE, SK, SI, UK-GB, UK-NI) provided the link to the pub- lished daily imbalance charge calculation meth- odology or to the published interim imbalance charge. Croatia  39) published another applicable methodology which is currently under revision. The provided links to the published methodolo- gies can be found in in Annex I, table 1.3 . According to BAL NC provisions, the daily imbal- ance charge calculation methodology shall define the calculation of the daily imbalance quantity, the derivation of the applicable price and any other necessary parameter. As part of the calculation methodology, the approved daily imbalance quantity shall be cal- culated for each network user’s portfolio as the difference between the inputs and off-takes for each gas day. In 25 countries including Estonia (AT, BE, BG, CZ, DE, DK, EL, ES, FR, HR, HU, IE, IT, LT, LU, NL, PL, PT, RO, SE, SK, SI, UK-GB and UK-NI) the daily imbalance quantity is calculated for each network user’s balancing portfolio for each gas day. In eight countries including Estonia (CZ, EL, ES, NL, PT, SE and SK) the above-mentioned daily imbalance quantity calculation is adapted ac- cording to BAL NC due to the fact that a linepack flexibility service is offered (CZ, NL, PT and SE) or an arrangement is in place (EE, EL ES and SK) whereby network users provide gas to the system. Further details can be found in Annex V, table 5.2 . 23 countries (AT, BE, BG, CZ, DE, DK, EL, ES, FR, HU, IE, IT, LT, LU, NL, PL, PT, RO, SE, SK, SI, UK-GB, UK-NI) except two countries (EE  40) and HR) reported that the daily imbalance charge is based on the final daily imbalance quantity. Daily imbalance quantity calculation (Art. 21)

39) There is no implementation of daily imbalance charge; the current methodology is used according to the Rules on the Organisation of the Gas Market. The daily imbalance charge calculation methodology will be implemented by 1 April 2017. 40) Balancing gas sale and purchase offers 41) There is no implementation of daily imbalance charge; current methodology is used according to the Rules on the Organisation of the Gas Market. 42) In Austria, daily imbalances are settled at the exchange of the VTP in the name and on behalf of the respective balance group responsible party if the BGRPs do not balance themselves after receiving an imbalance notification. Thus, the imbalance charge is the market price at the exchange. Transactions at the VTP are executed at the reference price published on the website of the operator of the VTP (CEGH) at that time. 43) In the Netherlands, the daily imbalance charge is always zero, because the daily imbalance volume is always zero. The imbalance quantities are absorbed by the linepack flexibility service according to art. 21.2 BAL NC.

ENTSOG BAL NC Monitoring Report 2016 |

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