ENTSOG BAL NC Monitoring Report 2016

Table 8.3: Description of Interim imbalance charge

DESCRIPTION OF INTERIM IMBALANCE CHARGE

Country

1. The reason of using interim imbalance charge 2. The basis of the price derivation 3. Formula 4. The timeline to implement the Daily imbalance charge methodology

BG

1. There are no other mechanisms to determine marginal price in the terms of lack of liquidity. 2. Administered price 3. http://bulgartransgaz.bg/files/useruploads/files/amd/VTP_news/metodika-disbalans-gas.pdf 4. –

EE 1. – 2. Proxy for a market price 3. For sales price the minimum of the merit order selling bids, for purchase price the maximum of the merit order purchase bids. 4. – EL 1. Due to lack of market liquidity, the balancing gas price cannot be derived by the buy or sell price of title products 2. Administered price 3. HTAE(d) = [HTAE(d-1) x ΑπΥΦΑΕξ(d-1) + ΤΠΥΦΑ(d) x ΥΦΑΕξ(d)] / [ΑπΥΦΑΕξ(d-1) + ΥΦΑΕξ(d)] HTAE(d): Gas Balancing Price for the Day d

ΑπΥΦΑΕξ (d): LNG reserves for balancing purposes at Day d ΤΠΥΦΑd (d): LNG (for balancing purposes) buy price at Day d ΥΦΑΕξ (d): LNG quantity purchased on Day d for balancing purposes. 4. Mid 2017 – balancing platform. April 2019 – trading platform

IE

1. – 2. Proxy for a market price 3. Part E (Section 1.7) of the ROI Code of Operations 4. –

PL 1) L-gas 1. There is no trading platform available in this balancing zone. The prices from the balancing platform are used for the calculation of the marginal prices. 2. Price derived from balancing platform trades; 3. Marginal pricing mechanism is based on a price derived from transactions concluded on the balancing platform. The marginal sell price is set as the lower of the following variables: – The lowest price from transactions concluded on the balancing platform for gas day n; – The weighted average price of gas in transactions concluded on the balancing platform for gas day n, minus 10%. The marginal buy price is the higher of the following variables: – The highest price from transactions concluded on the balancing platform for gas day n; – The weighted average price of gas in transactions concluded on the balancing platform for gas day n, plus 10%. In case when no transactions are concluded on the balancing platform with respect to the gas day, the prices established for the previous gas day apply. Until the moment when the first transaction is concluded on the balancing platform the weighted average price of low-methane gas bought by the TSO for technological purposes is applied. TGPS 1. There was no transaction on a trading platform yet. The trading platform is not liquid. Therefore the prices from the adjacent balancing zones are used in order to establish a market price. 2. Proxy for a market price. 3. Marginal Purchase Price (KCK) is calculated as the multiplication of the factor 1.1 and the higher of the two following prices: – weighted average price from all transactions of TGE session of the Day-Ahead Market (customised product for high methane balancing area) decreased by transportation costs from the TGPS to the high methane balancing area through the connection point PWP (under the daily product on the firm basis), – weighted average price from all transactions of the EEX session of the Day-Ahead Market increased by transportation costs to the TGPS through the connection point Mallnow (under the daily product on the firm basis).

Marginal Selling Price (KCS) is calculated as the multiplication of the factor 0.9 and the lower of the two following prices: – weighted average price from all transactions of TGE session of the Day-Ahead Market (customised product for high meth- ane gas balancing area) decreased by transportation costs from the TGPS to the high methane balancing area through the connection point PWP (under the daily product on the firm basis), – weighted average price from all transactions of the EEX session of the Day-Ahead Market increased by transportation costs to the SGT through the connection point Mallnow (under the daily product on the firm basis).

4. 16 April 2019

1) In Poland the interim imbalance charge is implemented only for L-gas and TGPS balancing zones.

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