ENTSOG BAL NC Monitoring Report 2016

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Table 2.2: Provided details of balancing services per country

1) REPORTED REASON FOR THE (PLANNED) USAGE OF BALANCING SERVICES 2) IN WHICH WAY MAY THE PROCUREMENT AND USE AFFECT THE LIQUIDITY OF THE SHORT TERM WHOLESALE GAS MARKET? 3) OUTCOME OF REVIEWED THE USE OF BALANCING SERVICES ANNUALLY BY 1 OCTOBER 2016 (ART. 8.6) OR REASON WHY NOT REVIEWED.

COUNTRY USAGE ACC. ART. 8.3 OR ART. 8.4

Planned for 1 January 2017

1)STSPs are not providing the necessary response 2) The procurement may incentivise the diversification and competition between the shippers. 3) As the balancing rules are if force from the beginning of the year, we shall review the results in Q3 1) In the absence of liquidity: The balancing service was implemented for cases of insufficient liquidity or failure of market system, however has not been used yet 2) n/a 3) Review will be done after one year since the implementation (after 1 July 2017)

Public tender (art. 8.3)

1) Long Term Options can be used in case of a locational balancing demand if no short-term offers within the respective location are available. STSPs are usually very liquid and available for trade at any time of the day. Long Term Options are however contracted for emergency situations to ensure security of supply. 2) Balancing Services are contracted for emergency situations and are only used when no corresponding short term offers are available. Priority is given to STSPs, meaning that available short-term offers are used first regardless of the commodity price. 3) The annual review of balancing services was conducted in the annual report that was submitted to the NRA on 5 December 2016. Due to a policy paper of the Federal Ministry for Economic Affairs and Energy from 16 December 2015 both MAMs were required to put Long Term Options out for tender to ensure security of supply in emergency situation. The Long Term Options were successfully contracted for the time period of February and March but there was no need to use this products in both market areas. For market area NCG: The review highlights that the balancing service product “flexibility” was replaced by STSPs on 1 May 2016. For the market area GASPOOL: In the current situation there is still a need for the usage the Flexibility Products but it will be analyzed for the future. 1) in the absence of liquidity: A short – term NG market has not been established yet, due to low degree of network interconnectivity and congested upstream transmission networks. 2) The provision of balancing services is planned to be limited when the balancing platform will be in operation; consequently the wholesale gas market is not expected to be affected from the provision of the balancing services. 3) Review is not required since no STSP are in place yet. 1) STSPs are not providing the necessary response 2) Enagás in its role of Technical Manager of the System has not acquired any balancing service till now, although national legislation allows using balancing services if STSPs are not providing the necessary response, as long as they comply with art. 8 of the Regulation. 3) No review yet as in Spain the code was fully implemented by 1 October 2016 and no balancing services have been acquired. 1) Currently in Interim Measures phases. (STSP will be introduced to coincide with the introduction of an IBP (Irish Balancing Point) based trading platform. (Planned Q3/Q4 2017)) 2) There is currently no Trading platform offering IBP STSPs. When one is established to the satisfaction of the CER and GNI, GNI will use such a Trading platform as its primary source of necessary balancing actions. 3) No Trading platform is currently available. TSO is required to continue to use Balancing Services Contracts. 1) STSPs are not providing the necessary response 2) In Italy the identification of potential balancing services is currently ongoing. In this process, the principles and procedures introduced by Art.8(3) of BAL NC will be followed since covered by the criteria currently foreseen by the Italian regulatory framework.When balancing services are actually introduced, they will be designed in a way that limits effects on the wholesale short-term gas market, as provided by SRG Network Code criteria. By the way, when balancing services are used in cases of scarce liquidity, their procurement and use are not expected to substantially worsen market conditions. 3) No review yet as the balancing regime started on 1 October 2016 (see answer 1.2.1). A review of the use of balancing services would be possible only at a later stage, in case these products are actually introduced and used. 1) In the absence of liquidity: No gas exchange in Estonia. 2) No liquidity currently exists, therefore no effect. 3) No liquidity for STSP in Estonian market, therefore the framework contracts approach would be continued 1) STSPs are not providing the necessary response 2) Due to the price 3) Outcome: STSP are not sufficient.

EE*

Public tender (art. 8.3)

Other NRA approved procedure (art. 8.4) 1)

Public tender (art. 8.3)

1) RULES ON THE ORGANISATION OF THE GAS MARKET: Article 10, paragraph 7: In the event that the gas market operator for justifiable reasons does select an annual balancing energy bidder in accordance with Paragraph 2 of this Article, the annual balancing energy bidder for the next storage year will be determined as the energy undertaking on the gas market that is the balance group head with the greatest leased share of operational volume of the gas storage system in the Republic of Croatia for the next storage year.

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