ENTSOG Implementation and Monitoring Report 2017 - Balancing Network Code

Executive Summary

Following Article 8 (8) of Regulation (EC) No 715/2009, European Network of Transmission System Operators (ENTSOG) shall monitor the effects of the Balancing Network Code (BAL NC) in the European market. The second ENTSOG report on effect moni- toring covers the implementation of the BAL NC on 31 balancing zones across 25 EU countries for the gas year (GY) 2016/2017.

ENTSOG introduces 5 indicators (BAL.1 to BAL.5) in order to show certain effects of the im- plementation of the BAL NC. The 25 countries (AT, BG, BE/LU, CZ, DE, DK, EE, EL, ES, FR, HR, HU, IE, IT, LT, LV, NL, PL, PT, SE, SI, SK, RO, UK-GB and UK-NI) where the BAL NC applies are clustered into three groups related to their chosen implementation deadline as follow:

Portugal, Estonia and 7 countries of cluster 2019 (BG, EL, IE, LV, SE, RO and UK-NI) use only balancing services whereas Slovakia use only balancing platform. This analysis has to be taken with caution for Portugal, Latvia, Romania and Slovakia, since in these balancing zones, TSOs have taken only a few balancing actions during the year (for 7 days or less). In order to reduce its residual balancing role, a TSO should reduce the daily volume traded and/or the number of days it is taking balancing actions during the year. What will be interesting to follow is the yearly evolution for a given balancing zone since some intrinsic features of each network will make comparison among bal- ancing zones tricky to interpret. For this edition, we could only compare to last year the data of cluster 2015 and some countries of cluster 2019. Countries with WDOs (AT, BE/LU, NL) still have the lowest residual balanc- ing role even if the balancing volumes have in- creased for BE/LU-H and NL. HU and UK-GB are in the same range. The other balancing zones of cluster 2015 except PEG Nord (DK, TRS, Gaspool, NCG and SI) shows decreases in volume and/or number of days. Germany still has the highest residual balancing role, due to their model: TSOs have to take into account gas quality conversion and the handling of Non-Daily Metered off-take volumes in addition to shipper imbalance volumes.

\\ Cluster 2015: AT, BE/LU, DE, DK, FR, HU, NL, SI and UK-GB (10 countries)

\\ Cluster 2016: CZ, ES, HR, IT and PT (5 countries)

\\ Cluster 2019 + Estonia: BG, EE, EL, IE, LT, LV, PL, SE, SK, RO and UK-NI (11 countries since UK is clustered two times: UK-GB in cluster 2015 and UK-NI in cluster 2019). Estonia holds a derogation but has responded on a voluntary base. For the presentation of the indicators, Estonia will be added to this cluster. In 16 countries (AT, BE/LU, CZ, DE, DK, ES, FR, HR, HU, IT, LT, NL, PL, SI and UK-GB), TSOs rely mainly or exclusively on WD title products for their balancing actions.

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ENTSOG BAL NC Implementation and Effect Monitoring Report 2017