ENTSOG BAL NC Monitoring Report 2016

3 Description of the four effect monitoring indicators

3.1 INDICATOR BAL.1: TSO BALANCING THROUGH SHORT-TERM STANDARDISED PRODUCTS AS % OF TOTAL TSO BALANCING

The BAL.1 indicator is calculated by dividing the total quantity of gas traded by the TSO via STSPs for balancing purposes through the total volume of all TSO balancing actions. It is proposed as it provides a clear indication on the degree to which balancing by the TSO is being performed through standardised short- term products compared to all TSO balancing actions. The criteria are chosen to identify balancing trades in order to create a common basis to compare the balancing trades done by TSOs.

The physical settlement requirement are not taken into account, as both the gas target mod- el and article 9 of the BAL NC prioritise the use of title products where and to the extent appro- priate over any other available short term stand- ardised products. Some physical effect is of course essential, but the initial trade with the TSO as a counterpart does not need to fulfil this requirement.

This indicator gives an accurate assessment of a well-functioning short-term balancing market.

The assumption: Balancing by a TSO is con- ducted via balancing products following the merit order. Balancing products ranked higher in the merit order are preferred to be used instead of lower ranked balancing products.

Image courtesy of FGSZ

ENTSOG BAL NC Monitoring Report 2016 |

91