The EU's energy regulatory agency ACER has adopted framework guidelines for gas balancing, the agency said Wednesday.
Under the EU's third package of energy market reforms, which came into force on March 3, ACER is to prepare framework guidelines on a number of issues that can then be translated into network codes by the new transmission system operator bodies for electricity (Entso-e) and gas (Entsog).
The guidelines set out an obligation on gas transmission system operators to buy and sell so-called "flexible" gas so that they can keep their gas systems operating within safe limits. But they stress that TSOs should buy flexible gas and related gas balancing services in a way that helps minimize the cost of balancing the system by accepting lowest offers and highest bids. They should also do this on wholesale markets in a transparent way, the guidelines state.
On gas balancing services, the guidelines say that network codes should clearly define standardized products that TSOs are allowed to buy and sell. These would be both short-term products traded during the gas day either on a physical basis or through title transfer, and long-term products for up to one year.
The guidelines also set out how network codes will accommodate those cases where TSOs cannot engage on wholesale markets because these are still illiquid.
And they add that network codes should include an obligation on TSOs to publish a transparent methodology on imbalance charges so that shippers and other players know what to expect when they are out of balance at the end of the balancing period. The charges should reflect the cost of balancing the system, the guidelines state.
The guidelines have now been sent to the European Commission for scrutiny. If the EC endorses them it can then instruct Entsog to start work on network codes.
The full guidelines are available at http://www.acer.europa.eu
ACER has already held an industry consultation on the guidelines which ended on June 12.
