November 13, 2019

Draft product description for the bilateral balancing product “Short Call Balancing Services”


NetConnect Germany GmbH & Co. KG (NCG) plans to launch a new balancing product – Short Call Balancing Services (SCB) – over the course of the next year. The SCB product is to serve as a tool for meeting short-term structuring requirements in the low CV gas system. The extent to which market-based (“external”) balancing actions for structuring purposes are required in the low CV gas system can only to a limited degree be projected for three hours ahead, which is the general lead time applicable to the balancing products currently used in the market area NetConnect Germany. A large part of the structuring needs requiring shorter lead times is currently met from the linepack of the low CV gas system as well as via the existing bilateral operational balancing accounts in place between the German TSOs and GTS. However, linepack flexibility in the low CV gas system is not always sufficient to meet these structuring requirements and the OBA flexibility can only be used on an “as-available” basis.

In order to be able to continue to meet these short-term balancing requirements against the background of the gas quality switchover process, i.e. the permanent conversion of low CV networks to high CV gas quality, currently under way in Germany, NCG wants to introduce the SCB product for use as a new balancing service within rank 4 of the merit order (“MOL 4”). The gas requirements to be met through the SCB product would be tendered out on a long-term basis (probably monthly) for delivery at storage connection points (storage Epe-L) in the balancing zone “L-Gas Ost” (low CV zone East, LO). When needed, the contracted SCB balancing services would be called with a lead time of no more than 60 minutes in direct coordination between the market area manager and/or the relevant network operator and the storage operator concerned.

The current draft of the planned product description is published on the NCG website. If you have any questions, please do not hesitate to get in touch with the Market team.