New Version of Regulation of Trading on the Natural Gas Exchange Was Approved by the NCCPE
Today, the new edition of Regulation of Trading on the Natural Gas Exchange of GET Baltic (the Company) was approved at the meeting of the NCCPE. The changes were made as the Company has assessed the foreseen changes on the natural gas market and indicated the needs of customers while cooperating with them.
The main changes include:
1. To expand the trading days, it shall mean that the trading on the Exchange will be carried out also on weekends. This aspect shall be very important for the Exchange participants when the Balancing Rules for the Natural Gas Transmission System will be applicable in full.
2. The possibility to choose the plan of fees. This innovation provides an opportunity for the Exchange participants to choose the plan of fees, which more matches with their needs. It is planned that starting from the next year the company will offer additional plan of fees, which will be without fixed annual membership fee and this plan will be useful for the smaller gas market participants.
3. The introduction of the previous day product, this product will provide an opportunity to operate the trade of the natural gas when the certain delivery day is ended. The trade of ended delivery day natural gas will be held on the trading session of next day after the ended delivery day.
Selling and buying natural gas of previous day is the sale of the purchased natural gas by Exchange participant’s (on the Exchange and (or) by the bilateral agreements) which is supplied to the transmission system, but not consumed and the purchase of the gas consumed by the Exchange participant, but not purchased. It is used to eliminate or reduce the imbalance after the balancing period using the Exchange. When the AB Lietuvos Dujos (from 1 August of this year – AB Amber Grid) Rules of Natural Gas Transmission System Balancing is applied in full, the previous day product will help to carry out the responsibility of gas flow balancing on the transmission system. When the balancing period is over, the participant could trade their mismatches (imbalances) with each other on the Exchange, on the next trading session after they calculate the difference between used and supplied volumes of natural gas to the transmission system.
„The large natural gas market participants (the user of transmission system) will be required to balance their natural gas flow on the transmission system from 1 August of this year. Obviously, that it is not always clear what volume of natural gas they need to order from the suppliers, because the exact need of gas often gets clear only on current day. The previous day product will help the natural gas market participants to control this situation and minimize probable losses. This innovation will help to avoid the imbalance remuneration, which the transmission operator will use if the consumption of natural gas deviates from the initial plan, in other words, if the market participant uses more or less than the participant has actually purchased.
The Regulation of Trading on the Exchange is the main document, which regulates the whole procedure how the trading on the Exchange is carried out. It is glad that the Exchange participants contribute to the development of this document and at the same time to the development of the Exchange, by submitting their suggestions and identifying their needs, which we try to solve and to suggest the solutions, which meets specific their business processes.” – CEO of UAB GET Baltic Haroldas Nausėda commented the innovations on the Exchange.
We note that the new edition of Regulation of Trading on the Natural Gas Exchange and all the amendments mentioned above shall enter into force on 1 September of this year.