ENTSOG Implementation and Monitoring Report 2017 - Balancing Network Code

2.4 DAILY IMBALANCE CHARGES (CHAPTER V OF BAL NC)

Daily imbalance charge calculation methodology (Art. 20)

The daily imbalance charge mechanism is intended to incentivise network users to balance their portfolios. Out of balance, network users are bound to pay or are entitled to receive (as appropriate) daily imbalance charges depend- ing on their balancing position on a particular gas day. The daily imbalance charge is a cost-re- flective mechanism and shall take account of the prices associated with transmission system operator’s balancing actions, if any, and small adjustment. It should have been implemented by all countries by 1 October 2016, except for those countries that applied for interim imbal- ance charge. The map below shows that 18 countries report- ed the implementation of daily imbalance charge methodology by 1 October 2017 whereas 9 countries reported implementing the interim im- balance charge as an interim measure. UK and Poland are using the two alternatives, of course, not in the same balancing zone.

According to BAL NC provisions, the daily imbalance charge calculation methodology shall define the calculation of the daily imbalance quantity, the derivation of the applicable price and any other necessary parameter. The methodology approved by the NRA has to be published on a relevant website. 22 countries (BE/LU, BG, CZ, DE, DK, EE, EL, ES, FR, HR, HU, IE, IT, LT, LVNL, PL, PT, RO, SI, UK-GB) provided the link to the published daily imbal- ance charge calculation methodology or to the published interim imbalance charge. Austria stated that the market price is published on the website of CEGH, which is www.cegh.at . In Sweden a neutral method based on possible locational trades within the applied interim measures is applied. Slovakia stated that they are using the Balancing Platform for setting the price for Imbalance Charge calculation. UK-NI stated that is an ongoing assessment.

Daily imbalance charge implemented

Interim imbalance charge implemented

Map 2:  Implementation of Daily imbalance charge vs. Interim imbalance charge by 1 Oct. 2017

a) Croatia plans to implement Daily imbalance charge as of 1 April 2017. b) Bulgaria plans to implement Interim imbalance charge during 2017.

18 |

ENTSOG BAL NC Implementation and Effect Monitoring Report 2017