ENTSOG BAL NC Monitoring Report 2016

Table 2.2: Provided details of balancing services per country

COUNTRY USAGE ACC. ART. 8.3 OR ART. 8.4

1) REPORTED REASON FOR THE (PLANNED) USAGE OF BALANCING SERVICES

2) IN WHICH WAY MAY THE PROCUREMENT AND USE AFFECT THE LIQUIDITY OF THE SHORT TERM WHOLESALE GAS MARKET?

3) OUTCOME OF REVIEWED THE USE OF BALANCING SERVICES ANNUALLY BY 1 OCTOBER 2016 (ART. 8.6) OR REASON WHY

NOT REVIEWED.

Public tender (art. 8.3)

1) Balancing services is applied taking in to account cost efficiency, also STSPs are not providing the necessary response to keep

transmission network within its operational limits.

2) Lithuania is small and quite isolated gas market, there are only few market players active on wholesale market. The only

adjacent balancing zone Latvia is still closed market, has derogation based on Article 49 of Directive 2009/73EC and is not

implementing BAL NC. We expect liquidity should increase in coming years (the market should be opened in Latvia since April

2017) due to regional market development (possible market measures) and changing market environment.

3) With the expected increase of liquidity, it is foreseen that the use of balancing services could be reduced in 2017.

(H-GAS)

Public tender (art. 8.3)

1) STSPs are not providing the necessary response

2) Balancing service used by TSO does not affect the liquidity of the short term wholesale gas market. This service has been

implemented because only this balancing product was available to balance the small part of this balancing area. TSO chose the

balancing service according to the merit order mentioned in Art.9 – only when there are no other possibilities to balance the

system.

3) This service has been implemented because no other balancing product is available in this case (there is no locational product

available at the trading platform).

Other NRA approved procedure

(art. 8.4)

1) TSO has no access to STSPs as there is no organised market in Portugal yet.

2) As there is no organised market in force in Portugal, there are no STSPs available for market users in Portugal.

3) Not applicable as the NC BAL was implemented by 1 October 2016

Public tender (under IM) and Other

NRA approved procedure (art. 8.4)

1) In the absence of liquidity:

At the moment there are no STSP on the domestic market, but only a product which can be customised based on the necessities

of the delivery period, it may be used for short term products as well.

2) Until the moment there is no wholesale market dedicated to short term products.

3) Subsequent to the analysis performed it was concluded that the balancing services are still necessary.

Public tender (art. 8.3)

1) In the absence of liquidity:

Sometimes the required amount cannot be fulfilled through auction on Balancing platform.

2) Balancing services are procured as stated in Art. 8.3. Balancing services ae used only in case when Balancing platform Auction

is not successful.

3) Outcome of the review was to continue in using Balancing Services.

Public tender (art. 8.3)

1) The only source of NG are the border IPs, therefore the TSO needs a last resort balancing services to keep transmission network

within its operational limits in case STSPs do not provide necessary response.

2) The balancing service is procured in a way to foster the balancing market before to use of balancing service, as the STSPs are

favorable for the market participants.

3) With the implementation of the STSPs the use of balancing service has decreased significantly.

UK-NI

Public tender (art. 8.3)

1) In the absence of liquidity:

Northern Ireland is a small market. Trading was first introduced to the NI regime in October 2015 via a VTP and there is not

currently sufficient liquidity.

2) Steps taken by the NI TSOs to encourage market development through the re-design of the balancing gas tender and associated

processes for GY16/17 have been unsuccessful. The NI TSOs propose to continue to utilise balancing contracts and will prepare

the tender for 2017 – 2018 following responses to Interim Measures Report. The design of the tender process will aim to encour-

age market liquidity by encouraging participation and trade at the NI BP.

3) Standardised products would not better meet the TSO's operational requirements nor could the use of balancing services be

reduced for the next year. The residual balancing requirements for Northern Ireland do not appear to have been especially

affected by the new arrangements put in place in October 2015, as balancing activity is fairly typical compared to previous

years. Steps taken by the NI TSOs to encourage market development through the re-design of the balancing gas tender and

associated processes have been unsuccessful.

2) In Portugal the balancing services procedure was approved by the NRA whilst setting a transitional period until the Mibgás trading platform

becomes operational in the Portuguese Market. During this period, the TSO shall fulfil its needs for operational gas, either buying or selling,

through an auction mechanism, which is to be triggered by the TSO according to an approved methodology.

3) Portugal is on route to have soon an organised market functioning in its balancing zone. According to the NRA's decision, Mibgás, S.A.,

operating the Spanish Trading platform at the Spanish VTP (PVB) shall be the future Market Operator in Portugal, which is currently delayed due to

administrative legal hindrances.

4) In Romania the balancing services are offered by the Storage operator based on a contract concluded annually. Based on the legal provisions,

Transgaz has to own a stock of natural gas available in the underground storages, for balancing. The underground storage activity, the contract-

ing procedure and the tariff are regulated by the National Regulatory Authority.

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ENTSOG BAL NC Monitoring Report 2016