Austria: Amendments To Gas Market Model Ordinance

The Gas Market Model Ordinance plays a major role in the Austrian gas market, as it regulates network access and the capacity management and balancing system in Austria's three market areas: the east, Tyrol and Vorarlberg.

The ordinance is in the process of being amended and its new provisions will take effect on October 1 2016 and January 1 2017, respectively. In essence, the amended ordinance foresees more nuanced requirements and options in relation to the issues outlined below.

Aggregation of residual loads

In order to guarantee the equal treatment of all suppliers, the concept and calculation of residual loads has been introduced in the ordinance. 'Residual load' is defined as the difference between the actual consumption of standardised load profile (SLP) consumers (calculated by subtracting measured withdrawals, linepack changes, system losses, consumption and metering errors from the amount of energy exchanged between the systems) and the predicted consumption of SLP customers based on aggregating load profiles (Section 2(1)(14a) of the ordinance). As outlined in the ordinance, residual loads must be calculated and allocated proportionally by the balance group coordinator, within the course of clearing, based on data submitted by the respective distribution system operator. For that purpose, each distribution system operator must determine the corresponding quantities for all suppliers in its respective network area by aggregating the synthetic load profiles (Sections 27(11) and 37(10) of the ordinance). As a consequence, distribution system operators must establish appropriate arrangements in their organisational structure – in particular, in relation to obtaining and providing the relevant data before the ordinance comes into force (ie, before January 1 2017).

Merit order list and balancing energy

The balancing instrument of the merit order list was extended by an additional product which aims to enable load-metered end consumers to participate in the merit order list. The purpose of introducing an additional product for load-metered end consumers is to increase the potential to acquire balance energy on the market in case of shortages. According to the ordinance, balance group representatives must conclude agreements regarding participation in and the settlement of the merit order list with load-metered end consumers that intend to participate and that have a contractually agreed maximum output exceeding 10,000 kilowatt-hour per hertz (kWh/h) (Sections 20(6) and 39(6) of the ordinance). The conclusion of such agreements is compulsory for end consumers with a contractually agreed maximum output exceeding 50,000 kWh/h (bulk purchasers). This also triggers the obligation for bulk purchasers to register as providers of balancing energy (Section 30(1) of the ordinance).

Consequently, the merit order list will contain two different products:

  • standard product – lead time of 30 minutes, a minimum duration of one hour and a minimum size of 1 megawatt-hour per hertz (MWh/h); and
  • flexibility product – options of either three, six or 12 hours of lead time to be chosen as rest of the day product or daily band per gas day with a lead time until 6:00pm of the preceding day and a minimum size of 1 MWh/h (Sections 31(1), 31(2), 31(7), 31(7a), 31(8), 31(11) and 31(12) of the ordinance).

Apart from the lead time, duration and size, the difference between standard and flexibility products is that in the case of flexibility products, it is possible to oblige the distribution area manager to accept the entire offer rather than parts therein (Section 31(8) of the ordinance).

Moreover, in light of the newly introduced balancing instrument, distribution area managers must procure physical balancing energy in accordance with the following priority system (Section 27(9)):

  • procurement through trade of standardised products on natural gas exchanges via the virtual trading point;
  • procurement through standardised products in accordance with the merit order list; and
  • procurement through flexibility products in accordance with the merit order list.

The provisions regarding the merit order list and balancing energy will come into force on January 1 2017.

Cross-border interconnection points in Vorarlberg

Due to new regulations in Liechtenstein, it was necessary to amend the provisions on the organisational and operational settlement of cross-border interconnection points in the Vorarlberg market area. These provisions also apply in the Tyrol market area. In accordance with the amendments to the ordinance, balance group coordinators and distribution area managers will be responsible for settling volume movements at cross-border interconnection points which can be booked by system users. For that purpose, distribution area managers must:

  • predict the total consumption of end consumers in the Tyrol and Vorarlberg market areas;
  • consider the timetables for cross-border interconnection points; and
  • nominate the corresponding exit capacities with the bordering upstream system operators (Section 45(4) of the ordinance).

Similarly, the balance group representative's role is to register timetables for end consumers per balance group and cross-border interconnection points with the distribution area manager (Sections 37(3) and 45 of the ordinance). Further, the balance group representative must initiate the transfer of the necessary amounts of gas at the virtual trading point of the bordering upstream market area (NetConnect Germany). However, a physical gas delivery from the Tyrol and Vorarlberg market areas to the bordering market area NetConnect Germany is not envisaged and, according to the existing and amended market rules, only exit capacities can be nominated by the distribution area manager. This should be considered by the balance group representative when timetables are compiled.

The provisions regarding the cross-border interconnection points in the Vorarlberg market area will come into force on October 1 2016.

This article was edited by and first appeared on http://www.internationallawoffice.com/.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions