Most TSOs to ask for EU balancing code deadline delay

20 December 2013 12:20 Source:ICIS

A majority of European transmission system operators (TSO) plan to request a five-year extension to the 1 October 2015 deadline for implementation of the EU-wide balancing network code, ICIS has learned.

According to a report by the European Network of Transmission System Operators (ENTSOG) seen by ICIS, those countries include Ireland and Northern Ireland, Sweden, Portugal, Poland, Luxembourg, Czech Republic, Slovakia, Romania, Bulgaria and Greece.

The remaining TSOs, which responded to the ENTSOG consultation, expect to implement the code either by October 2015 or by October 2016.

Britain, France, Belgium, the Netherlands and Austria expect to implement the code by 1 October 2015, while Germany, Spain, Italy and Slovenia by 1 October 2016.

The deadline for implementation is October 2015, but TSOs can apply for a one-year delay or use transitional measures up to April 2019 before fully implementing the code.

If TSOs want to use transitional measures for five years, they need to apply to the relevant regulatory authority within six months after the code goes into effect.

If all goes to plan that would be around September or October 2014 ( see ESGM 12 November 2013 ).

Strong cooperation among transmission system operators across Europe will be needed to ensure successful implementation of the EU-wide balancing network code, ENTSOG said.

National regulators, distribution system operators, shippers and trading platform operators (TPOs) will also have to cooperate.

Transparency and availability of information are essential for market functioning and early decisions about allocation of responsibilities for obtaining, processing and distributing information will enhance the prospects of timely implication of the balancing network code.

Implementation of other network codes, such as the CAM and market flexibility on pipelines and storage will also be needed to ensure smooth functioning of a short-term wholesale gas market.

The ENTSOG report also said that most European TSOs forecast far-reaching changes to the way they balance their market when the upcoming EU-wide network code is rolled out over the next five years ( see ESGM 18 December 2013 ). Matilde Mereghetti

By Matilde Mereghetti