Commercial Information

A single integrated gas market for Belgium and Luxembourg

Roles and Responsibilities

On the 1st October 2015, Fluxys Belgium and Creos Luxembourg, merged the Belgian and Luxembourg H-gas markets in one cross-border integrated gas market.

The BeLux area is an entry-exit system with a notional trading point “Zeebrugge Trading Point” or “ZTP” and where no capacity must be subscribed to transport gas from Belgium to Luxembourg or inversely.

The balancing regime within the BeLux area has been harmonized, in this context Fluxys Belgium and Creos Luxembourg created “Balansys” which has been appointed as the Balancing Operator which offers the balancing services in the BeLux area. Fluxys Belgium and Creos Luxembourg remain responsible for all activities except for the commercial balancing.

Regulatory framework and contractual set-up

As a shipper in the BeLux area, shipper should:

  • sign a Standard Transmission Agreement with Fluxys Belgium in order to become active in Belgium and/or a Contrat Cadre Fournisseur with Creos Luxembourg in order to become active in Luxembourg and comply with the creditworthiness requirements of the Transmissison System Operator(s), and
  • sign the Balancing Agreement with Balansys and comply with the creditworthiness requirements of the Balancing Operator.

Hereafter you find an overview of the regulatory framework between the Transmission System Operator(s), the Balancing Operator and the shipper.

Balancing Model

Shippers are primary responsible for the balancing, this means that Balansys doesn’t take any action as long as the market imbalance is within the market thresholds.

  • When during the gas day the market balancing position goes beyond the market threshold, Balansys will take an action to cover this market shortfall or excess and those shippers contributing to this market shortfall or excess (causers) will be financially settled for their share.
  • At the end of the gas day, each shipper is settled to zero so that each shipper will start the next gas day with a zero position. This residual end-of-day imbalance is also settled in cash.

Settlement calculation 

1) Within day settlements

Shippers who are causing the within day market excess/shortfall (see event number 3 in image hereabove) will be financially settled for their share.

Depending on their Grid User Balancing Position  when the within day market excess/shortfall occurs, causers will be identified as main or minor causer. When Grid User Balancing Position

  • >= 20% of the Market Threshold, causer will be found main causer
  • < 20% of the Market Threshold, causer will be found minor causer.

In case of Market Shortfall :

  • Main Causer shippers will pay the maximum between the highest purchase transaction price Balansys has paid to cover this settlement and the ZTP Gas Spot Index* to which the small adjustment within-day for main causers is applied, multiplied by the term (1+Incentivizing Factor for Main Causers).
  • minor causer shippers will pay the maximum between the highest purchase transaction price Balansys has paid to cover this settlement and the ZTP Gas Spot Index* to which the small adjustment within-day for minor causers is applied, , multiplied by the term (1+Incentivizing Factor for Minor Causers).

In case of Market Excess,

  • main causer shippers will receive the minimum between the lowest sell transaction price Balansys has received to cover this settlement and the ZTP Gas Spot Index* to which the small adjustment for within-day for main causers is applied, multiplied by the term (1-Incentivizing Factor for Main Causers).
  • minor causer shippers will receive the minimum between the lowest sell transaction price Balansys has paid to cover this settlement and the ZTP Gas Spot Index* to which the small adjustment within-day for minor causers is applied, multiplied by the term (1-Incentivizing Factor for Minor Causers).

Shippers who are not causing the within day market excess or shortfall (helpers) are not being settled for such within day market excess or shortfall.

* EEX Day European Gas Spot Index (EEX Day EGSI) ZTP published by the European Energy Exchange

Prices used hereafter are just for information purposes only.

Within day Market Shortfall

Main Causer

  • ZTP Gas Spot Index = 23 €/MWh
  • Small Adjustment Within-day for Main Causers = 0%
  • Incentivizing Factor for Main Causers = 10%
  • Balancing purchase transactions at 25 €/MWh, 23,5 €/MWh and 22,8 €/MWh
    • Highest balancing transaction price = 25€/MWh
  • Settlement price = max (25; 23*1+0,0) x (1+0,1) = 27,5€/MWh

Minor Causer

  • ZTP Gas Spot Index = 23 €/MWh
  • Small Adjustment Within-day for Minor Causers = 0%
  • Incentivizing Factor for Minor Causers = 0%
  • Balancing purchase transactions at 25 €/MWh, 23,5 €/MWh and 22,8 €/MWh
    • Highest balancing transaction price = 25€/MWh
  • Settlement price = max (25; 23*1+0,0) x (1+0,0) = 25€/MWh

Within day Market Excess

Main Causer

  • ZTP Gas Spot Index = 23 €/MWh
  • Small Adjustment Within-day for Main Causers = 0%
  • Incentivizing Factor for Main Causers = 10%
  • Balancing sell transactions at 23 €/MWh, 22,9 €/MWh and 22,6 €/MWh
  • Lowest balancing transaction price = 22,6€/MWh
  • Settlement price = min (22,6; 23*1-0,0)*(1-0,1) = 20,34€/MWh

Minor Causer

  • ZTP Gas Spot Index = 23 €/MWh
  • Small Adjustment Within-day for Main Causers = 0%
  • Incentivizing Factor for Main Causers = 0%
  • Balancing sell transactions at 23 €/MWh, 22,9 €/MWh and 22,6 €/MWh
  • Lowest balancing transaction price = 22,6€/MWh
  • Settlement price = min (22,6; 23*1-0,0)*(1-0,0) = 22,6€/MWh

2) End-of-day settlements

All shippers will be settled to zero at the end of the day (see event number 4 in image hereabove) and this residual end-of-day imbalance will be settled in cash.

Depending on their Grid User Balancing Position  at End-of-day, causers will be identified as main, minor causer or helpers. When Grid User Balancing Position

  • >= 20% of the Market Threshold, causer will be found main causer
  • < 20% of the Market Threshold, causer will be found minor causer.
  • is in the opposite direction than the Market Balancing Position, shipper will be identified as helper.

In case of Market Shortfall:

  • The main causer shippers will pay the maximum between the highest purchase transaction price Balansys has paid to cover this settlement and the ZTP Gas Spot Index* to which the small adjustment End-of-day for main causers is applied
  • The minor causer shippers will pay the maximum between the highest purchase transaction price Balansys has paid to cover this settlement and the ZTP Gas Spot Index* to which the small adjustment End-of-day for minor causers is applied
  • The helpers shippers will receive the ZTP Gas Spot Index* to which the small adjustment End-of-day for helpers is applied

In case of Market Excess:

  • The main causer shippers will receive the minimum between the lowest sell transaction price Balansys has received to cover this settlement and the ZTP Gas Spot Index* to which the small adjustment End-of-day for main causers is applied
  • The minor causer shippers will receive the minimum between the lowest sell transaction price Balansys has received to cover this settlement and the ZTP Gas Spot Index* to which the small adjustment End-of-day for minor causers is applied
  • The helpers shippers will pay the ZTP Gas Spot Index* to which the small adjustment End-of-day for helpers is applied

* EEX Day European Gas Spot Index (EEX Day EGSI) ZTP published by the European Energy Exchange

 

Prices used hereafter are just for information purposes only.

End-of-day Market Shortfall

Main Causer

  • ZTP Gas Spot Index = 23 €/MWh
  • Small Adjustment End-of-day for Main Causers = 3%
  • Balancing purchase transactions at 23,6 €/MWh, 23,5 €/MWh and 22,8 €/MWh
  • Highest balancing transaction price = 23,6€/MWh
  • Settlement price = max (23,6; 23*1+0,03) = 23,69€/MWh

Minor Causer

  • ZTP Gas Spot Index = 23 €/MWh
  • Small Adjustment End-of-day for Minor Causers = 0%
  • alancing purchase transactions at 23,6 €/MWh, 23,5 €/MWh and 22,8 €/MWh
  • Highest balancing transaction price = 23,6€/MWh
  • Settlement price = max (23,6;23*1+0,0) = 23,6€/MWh

Helper

  • ZTP Gas Spot Index = 23 €/MWh
  • Small Adjustment End-of-day for Helpers = 0%
  • Settlement price = (23*1+0,0) = 23€/MWh

 

End-of-day Market Excess

Main Causer

  • ZTP Gas Spot Index = 23 €/MWh
  • Small Adjustment End-of-day for Main Causers = 3%
  • Balancing sell transactions at 23 €/MWh, 22,9 €/MWh and 22,6 €/MWh
  • Lowest balancing transaction price = 22,6€/MWh
  • Settlement price = min (22.6; 23*1-0,03) = 22,31€/MWh

Minor Causer

  • ZTP Gas Spot Index = 23 €/MWh
  • Small Adjustment End-of-day for Minor Causers = 0%
  • Balancing sell transactions at 23 €/MWh, 22,9 €/MWh and 22,6 €/MWh
  • Lowest balancing transaction price = 22,6€/MWh
  • Settlement price = min (22,6;23*1-0,0) = 22,6€/MWh

Helper

  • ZTP Gas Spot Index = 23 €/MWh
  • Small Adjustment End-of-day for Helpers = 0%
  • Settlement price = (23*1+0,0) = 23€/MWh

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Questions regarding commercial aspects: info@balansys.eu