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Introduction of measures to address imbalances (within-day obligations)

2022. 03. 24.

Dear Partners,

Please note that a new procedure will be introduced from 1 April 2022, which could have a significant impact on current business practices. To make the transition smooth, we have summarised related key information for you.

MEKH resolution  H2597 / 2021. approved the definitions of Articles 10 and 11 as well as the text of Article 2.3.1. (h) and 2.3.2.3. of the Operation and Business Code, implementing Articles 25-26 of Regulation (EU) No 312/2014 with effect from 1 April 2022.

Important information:

  • The imbalance limit violation examination starts at 14:00 before the gas day and then runs every hour thereafter.

Examined parameters:

  1. If the aggregated off-take confirmed to the network user is greater than 15 million kWh, the value of the imbalance threshold shall be 10% of the total off-take confirmed.
  2. If the aggregated off-take confirmed to the network user does not reach 15 million kWh, the imbalance threshold shall be 50% of the aggregated off-take confirmed.
  • In case of a threshold value violation, only a notification is given before the gas day. There are restrictions on trading rights and no changes to the portfolio.
  • In the event of a threshold value violation, the first notification of the imbalance threshold violation will be sent to the affected network user by e-mail after 14:00 on the preceding
  • In the event of a threshold value violation, a request will be sent after 06:00 on a gas day to restrict the bidding and contracting rights of the network user affected by the violation of the imbalance threshold for within-day natural gas sales transactions on CEEGEX and the Trading Platform.

As a result of the restriction, the network user affected by the breach of the limit threshold may only accept within-day title transfer transactions for the balancing portfolio on FGSZ’ Information Platform for the offer or transaction that reduces the imbalance.

  • By 10:00 a.m. on a gas day, the violation of the threshold value may be restored by the affected network user at his / her own discretion. So far, FGSZ does not make any changes to the nomination rows.
  • From 10:00 on a gas day, an actual nomination change process will start every hour in order to eliminate the violation of the threshold value as soon as possible. A notification will be sent to the affected network user by e-mail. It will not be possible to change the hours elapsed corrected by FGSZ afterwards. After the settlement of the portfolio imbalance (rectification of the violation of the threshold value), it will be possible to recover the lost amount in accordance with the general rules of re-nomination, for the rest of the gas day. The necessary capacity must be obtained by the relevant network user.
  • As a result of the nomination change process, the first nomination change in the balancing portfolio of the network user affected by the WDO threshold value will be made following the 2-hour lead time rule (e.g. at 10:00 on a gas day for the 12:00 to 13:00 gas hour).
  • The TSO shall reduce the calculated shortfall in the proportion of the quantities nominated at the cross-border entry-exit points and at the storage entry-exit points on a pro rata basis to the extent necessary as soon as possible. The matching processes following the modification will take place with the values reduced by FGSZ, the result will then be the confirmed delivery task. The portfolios will be adjusted accordingly.
  • On a gas day, as soon as the network user affected by the WDO threshold violation corrected its imbalance, then as a result of the examination:
    • a notification is sent to the network user that the restrictions have been lifted
    • FGSZ initiates the restoration of the bidding and contracting rights at CEEGEX and the Trading Platform
  • Threshold value violations will continue to be examined and in the event of a violation, restrictions and nomination reductions will be applied immediately as described above.

FGSZ provides testing opportunities for its partners on the Information Platform test system in order to ensure the smooth implementation of changes. We recommend that network users use a near-real nomination portfolio to test whether and how their new nomination / re-nomination processes will be affected by the new rules.

Best regards,

FGSZ Ltd

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