ENTSOG Implementation and Monitoring Report 2017 - Balancing Network Code

The following key-challenges have existed or still exist during or following the BAL NC imple- mentation phase in specific areas of concern: Low level of market liquidity and lack of flexible sources for balancing purposes (BG, DK, EL, IE, PL-L, PT, UK-NI);

Portugal stated that a new set of rules has been established by the National Regulator in September 2017, regarding, among other, the access of network users to short-term capacity products at internal points, by enabling the access to within-day capacity products at UGS and LNG Terminal interconnections with the same rules as for interconnection points, on a dedicated capacity platform. Romania stated that due to the difficulties in implementation, a joint working group of Transgaz/ANRE/DG ENER/ACER/ENTSOG was set up to implement a fully functional Entry Exit system aligned with the specific European regulations. Slovakia has started a discussion regarding implementation of the trading platform with the relevant stakeholders. Slovenia stated that they publish Linepack. Germany stated that the amended German Gas Network Access Regulation of 2017 foresees a merger of the two existing market areas by 1 April 2022 at the latest. Denmark and Sweden plan to merge the Swed- ish balancing zone with the Danish balancing zone subject to a decision to take in April 2018, the approval of the merge by the NRAs. Their decision-making process will be conducted in parallel to the TSOs implementation process. The plan is to have the merger implemented in April 2019. The project name of the balancing zone is “Joint Balancing Zone” (JBZ). France stated that as from 1 November 2018 it is planned to merge the two remaining balancing zones, PEG Nord and TRS. The resulting bal- ancing zone will be called TRF including a unique VTP called PEG. It is planned to merge the gas markets of Lithuania, Latvia, and Estonia into a single Entry-Exit system, including a single virtual trading point and a single balancing area. According to the plan, this regional gas market in the Baltic States will become operational in 2020. Furthermore, when the gas interconnec- tion between Estonia and Finland is in place, it is expected that Finland will join the single region- al market. UK-NI stated that the forecasting party arrange- ments have been fully implemented. Merge of balancing zones

\\ IT challenges (BG, CZ, IT, PT);

\\ Adjustment of legislation (BG, CZ, EL, HR, RO);

\\ Forecasting party (EE);

\\ Allocation at 3 rd country entry exit point (LV);

\\ Change of gas day (UK-GB).

Main updates compared to last year

In Austria, the organisation responsible for balancing – namely the Market Area Manager – has changed. AGGM Austrian Gas Grid Manage- ment AG instead of Gas Connect Austria GmbH is responsible since 1 June 2017. Denmark stated that an adjustment on price ref- erence from a mix of day-ahead and within-day to strictly within-day has been done since last year. Greece stated that the articles of the nomina- tions chapter are fully implemented at all entry and exit points of the Greek balancing zone, except the LNG entry point. Croatia introduced a trading platform and STSP by 1 April 2017. Hungary put in place a small adjustment from 1 April 2017. Ireland undertook a tender process to procure the services of a Trading Platform Provider. EBI has been awarded the contract. The EBI Platform went live in September 2017. GNI expect to be able to trade on the platform from May 2018 when all associated contractual, IT and internal processes are completed.

Latvia have introduced a balancing regime from May 2017 following the end of their derogation.

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ENTSOG BAL NC Implementation and Effect Monitoring Report 2017