ENTSOG BAL NC Monitoring Report 2016

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3 Description of the four effect

monitoring indicators

3.1 INDICATOR BAL.1: TSO BALANCING THROUGH SHORT-TERM

STANDARDISED PRODUCTS AS % OF TOTAL TSO BALANCING

The BAL.1 indicator is calculated by dividing the

total quantity of gas traded by the TSO via STSPs

for balancing purposes through the total volume

of all TSO balancing actions.

It is proposed as it provides a clear indication on

the degree to which balancing by the TSO is

being performed through standardised short-

term products compared to all TSO balancing

actions.

The criteria are chosen to identify balancing

trades in order to create a common basis to

compare the balancing trades done by TSOs.

The physical settlement requirement are not

taken into account, as both the gas target mod-

el and article 9 of the BAL NC prioritise the use

of title products where and to the extent appro-

priate over any other available short term stand-

ardised products. Some physical effect is of

course essential, but the initial trade with the

TSO as a counterpart does not need to fulfil this

requirement.

This indicator gives an accurate assessment of a

well-functioning short-term balancing market.

The assumption: Balancing by a TSO is con-

ducted via balancing products following the

merit order. Balancing products ranked higher

in the merit order are preferred to be used

instead of lower ranked balancing products.

ENTSOG BAL NC Monitoring Report 2016 |