PRISMA prepares for extra auctions as gas capacity rules loom

Julie Fisher

05-Oct-2015

Pan-European cross-border capacity auction platform PRISMA is preparing for an increase in auctions from the end of October in order to comply with the new European network code on capacity allocation mechanisms (CAM).

CAM will come into force on 1 November. Under the code transmission system operators (TSOs) have to sell capacity on standardised platforms, but are free to choose which platform is most appropriate for them and for the shippers that book the capacity.

This will lead to an increase in the number of auctions on PRISMA, but may well decrease the overall proportion of capacity.

There is rarely much overall demand for capacity on the platform due to a lack of price arbitrage between the balancing zones at most border points, keeping the booking rate low. However, some points are habitually popular due to favourable price spreads and supply needs.

CAM launch looms

Shippers need to register to participate in auctions before 1 November at points at which capacity will only become available on PRISMA from the end of the month.

British TSO National Grid and the BBL and Interconnector UK operators joined PRISMA in September, allowing shippers to register for the purchasing and trading capacity at the British-Belgian and British-Dutch interconnection points. The first day-ahead BBL auction will be on 28 October, the first National Grid auction on 31 October, and the first IUK auction on 1 November.

However, for shippers in the Czech Republic it is still uncertain where they will need to purchase capacity from November.

Czech TSO NET4Gas is still deciding between PRISMA and the Polish equivalent GSA and may choose to auction Czech-German capacity on PRISMA while using GSA on the Czech-Polish side.

Traders polled by ICIS early in September favoured PRISMA as the Czech Republic’s capacity platform as it is the platform used by Germany, the country’s biggest trading partner.

September sales increase

The proportion of daily and monthly capacity sold on PRISMA was up slightly in September, with 6% of the 15.4TWh of available capacity sold, compared to 4.3% in August.

An increase in the amount of monthly capacity sold had been expected, as this capacity was for October, the first month of the gas winter when demand traditionally increases.

As always, popular points included Oberkappel between Germany and Austria and the French north-south link. julie.fisher@icis.com

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