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Balancing rules

Balancing rules are specified in the Law on natural gas market and the Gas Network Code.

The transportation service client (TSC) shall bear responsibility for the occurrence of imbalances, including imbalances of consumer who signed supply contracts with TSC, and shall take all the available measures in order to avoid imbalances.

Negative imbalance – is an excess of volumes of the withdrawn natural gas from the GTS over the volumes of transmitted natural gas.

Positive imbalance – is an excess of volumes of transmitted natural gas over the volumes of the withdrawn natural gas.

 

Daily imbalance of the transportation services client

The TSO shall calculate the daily imbalance for each TSC, for each gas day as the difference between the volume of natural gas that the TSC transmitted at entry points and the volume of natural gas withdrawn from the GTS at exit points for this gas day.

The TSC may not fulfil obligations mentioned in Section 14, Chapter 2, paragraphs 2-3 of the Gas Network Code if its daily imbalance is ± 15% of the nomination/re-nomination inclusively.

When the allowed imbalance is exceeded by the TSC, the TSO has the right to apply to it (or its contracting parties, consumers) limitation/suspension measures at the respective entry/exit points, including relevant actions by the adjacent GTS operators.

If the volume of natural gas transmitted by the TSC during the gas day at entry points equals to “0” and the volume withdrawn by the TSC at exit points differs from “0,” the daily imbalance shall be 100% of the volume transported to the exit points.

 

Monthly imbalance of the transportation services client

The TSO shall calculate the monthly imbalance for each month as the difference between the volume of natural gas that the TSC transmitted at entry points and the volume of natural gas withdrawn from the GTS at exit points (including those to consumers of this TSC) for this gas month.

 

The monthly imbalance that occurred with the TSC and was not settled by the 12th date of the following month shall be settled by the TSO by measures mentioned below:

  1. in case of a positive monthly imbalance: the TSO shall transmit to the operator of UGSF the information on the TSC that has a positive imbalance and the volume of imbalance. The operator of UGSF shall inject the natural gas (i.a. by using replacement) in the volume of imbalance and shall document it unilaterally. In case the TSC does not have the valid contract on natural gas storage, it shall conclude such contract with the operator of UGSF by the 14th date of the following month;

2) in case of a negative monthly imbalance: by providing balancing services.

 

The value of balancing service is determined on the basis of data of negative imbalance due to the formula:

V= GRP × K × Q,

where

GRP – gas reference price – according to the Gas Network Code it is a price established for the payment period by the TSO based on the expenses on the purchase of natural gas, its transportation and storage and published on the web-site of TSO.

Q  – volume of negative imbalance of the TSC;

К – compensation rate is equal to 1.2. If imbalance is less than 5% of the natural gas withdrawn from the GTS, the rate should be equal to 1.