ENTSOG Implementation and Monitoring Report 2017 - Balancing Network Code

2.1 BALANCING SYSTEM (CHAPTER II OF BAL NC)

Gas transfer between two balancing portfolios within one balancing zone shall be done by disposing and acquiring trade notifications sub- mitted to the TSO in respect of the gas day. The intention is to incentivise network users to opti- mise their gas portfolios efficiently, so that the need for TSOs to undertake actions would be minimised. Independently from their applied implementation deadline, all countries must implement trade notifications by 1 October 2016. It is the case except for Greece who plans to implement trade notifications by the first half of 2018. Network Users who hold capacity (even 1kWh/d) at an entry or exit point of Greek NGTS would be able to buy or sell natural gas at the Virtual Nominations Point (VNP). This transac- tion takes place within the framework of the nomination/re-nomination procedure, where Network Users are able to submit delivery/offtake nominations at the VNP, without being obliged to include any physical natural gas delivery or offtake (by nominating at an entry or exit point). Some limitations for trade notifications have been reported in Romania where the notifica- tions in the VTP may be made only within the forecasted imbalance. The two following tables indicate the lead-time for trade notifications and the allocation rule applied in case of mismatch of the trade notifi- cations between the two counterparties of the trade. Sweden will in April 2018 take a decision to create a common balancing zone with Denmark. If this will be done, trade notifications will be handled completely within 30min. In Slovenia it is still under consideration to reduce the lead- time under 30 minutes. When trade notification quantities are not equal, the TSO shall allocate either the lower notifica- tion quantities or reject both trade notifications. Two countries (FR and IT) responded to use both mechanism and two other countries (HU, LT) answered that such a mechanism was not needed.

Lead-time of submitted trade notification by October 2017

Lead-time of submitted trade notification

Countries

≤30min

BE/LU, CZ, DE, ES, FR, HU, IE, IT, LT, NL, PT, UK-NI

≤2 hours

AT, BG, DK, EE, HR, LV, PL, RO, SI, SK, UK-GB, EL

>2 hours

SE

Table 1:  Lead-time of submitted trade notification by October 2017

Allocation rules of quantities in case of mismatches of trade notifications by 1 October 2017

Allocation rules of quantities in case of mismatches of trade notifications

Countries

Lesser rule

AT, BE/LU, BG, CZ, DE, DK, EE, FR  a) , IT  b) , LV, NL, PL, PT, SE, SK, EL

Reject both trade notification

ES, HR, IE, RO, SI, UK-GB, UK-NI

No allocation rule

HU  c) , LT  d)

a) In France, in case of mismatch of notification quantities, the lesser rule is applied. When the re-notifications quantities are still not equal, they are rejected. b) In Italy, in case of mismatch of notification quantities of OTC trading both trade notifications are rejected, while in case of mismatch of notification quantities of a trade on a gas exchange the lesser rule is applied. Curtailments or rejections are also possible in case of lacking financial guarantees coverage. c) Hungary stated that a mismatch is not possible in case of trades. Offer/accept method is in use. d) Lithuania stated that a notification is provided by seller, which is registered in NRA and trade notifications has to be agreed with buyer.

Table 2:  Allocation rules of quantities in case of mismatches of trade notifications by 1 October 2017

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