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Implementation of the Network Code Balancing in the Netherlands

Implementation of the Network Code Balancing in the Netherlands. Programme. Introduction Network Code (NC) Balancing Process steps in the Netherlands Current balancing regime Daily imbalance charges Balancing actions on the gas exchange Lessons learned.

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Implementation of the Network Code Balancing in the Netherlands

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  1. Implementation of the Network Code Balancing in the Netherlands

  2. Programme • Introduction Network Code (NC) Balancing • Process steps in the Netherlands • Currentbalancing regime • Daily imbalance charges • Balancing actions on the gas exchange • Lessonslearned

  3. 1. NC on Gas Balancing of Transmission NetworksHarmonization of EU-wide rules on balancing • Goal: to enable network users throughout the EU to manage balancing positions economically efficient and to be able to do it in a non-discriminative manner • EU timeline 2011 ACER Framework Guidelines • ENTSOG Network Code Balancing • NC approved in comitology process 2014 NC expected to be in effect as of October 2014 2015 Expected end of implementation period is October 2015

  4. 2. Process steps in the Netherlands • GTS assessed the impact of the NC Balancing on the Dutch market based balancing regime. Number of changes needed and two choices to be made • Implementation decisions made in close consultation with network users, representative organizations and regulator ACM • Implementation as of June 2014

  5. 3. Currentbalancing regime 06:00 06:00 • Continuous market based balancing • Network users have primary balancing responsibility • Maximal linepack flexibility available for network users • Near real time information provision Shipper A SBS Shipper B

  6. 4. Daily imbalance chargesEnd of day settlement 06:00 • NC Balancingstatestwoimplementation options: end of day settlement and Linepack Flexibility Service 06:00 Shipper A SBS Shipper B

  7. 4. Daily imbalancecharges Linepack Flexibility Service 06:00 06:00 • NC Balancingstatestwoimplementation options: end of day settlement andLinepack Flexibility Service Use of Linepack Flexibility Service Shipper A Use of Linepack Flexibility Service SBS Use of Linepack Flexibility Service Shipper B Use of Linepack Flexibility Service Selected option

  8. 5. Balancing actions on the gas exchange • Current regime: balancing actions via dedicated bid price ladder mechanism; ourowninitialbalancing platform • NC statestwo options • Continue the balancing platform as an interim measure • Use the within-day market of the gas exchange with NC product merit order • Use of the within-day market preferredbynetwork users andrepresentativeorganizations

  9. 5. Balancingactions on the gas exchange • Delivery on TTF • Use of title products in line with NC meritorder • Two products: TTF Balance of day and TTF Next hour prognosis SBS prognosis is in orange or red zone: TTF Next Hour product hh:20 06:00 SBS SBS prognosis is in light green zone: TTF Balance of day product

  10. 6. Lessonslearned • Close and transparant consultation with stakeholders contributesto a succesfullimplementationprocess • Network users preferto have the lowestbalancingcosts • Interpretation NC notalways easy • First step towardsharmonization • Alignment with gas exchange is a lot of work

  11. Thankyouforyour attention

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