Tender invitation for the provision of balancing services Jan - Mar 2019

NetConnect Germany GmbH & Co. KG (NCG) is inviting bids for the provision of balancing services in the period from January 2019 up to and including March 2019 in order to meet its long-term balancing requirements in the multi-quality market area of NCG, with bids being requested for the supply of gas by providers (SystemBUY) on a ‘Rest-of-the-Day’ basis (product variant ‘RoD’) under the ‘Long-Term Options’ (LTO) balancing product.

NCG is procuring the reserves set out below to secure its market area against so-called ‘dynamic effects’ arising in the individual balancing zones and to increase the security of the gas supply in accordance with the 2015 policy paper on gas supply security published by the German Federal Ministry for Economic Affairs and Energy (BMWi).

Please note the following for bids for the RoD product variant to be submitted for the low CV balancing zones:

  • Until 31 December 2018 LTO providers receiving a call order from NCG may provide the physical effect required under LTOs for low CV gas by nominating or renominating gas flows at market area interconnection points, among other options. From 1 January 2019 this will no longer be the case. From this date forward, providers submitting long-term bids for the provision of balancing services in the low CV sectors may only use storage points or exit points to industrial sites connected to the low CV network areas to deliver this physical effect.
  • Bids for the supply (SystemBUY) of low CV gas by providers may be submitted for both the balancing zones East (LO) and West (LW). However, bids will be accepted on a best-price basis across both balancing zones.

For bids for the RoD product variant to be submitted for the high CV balancing zones, please note:

  • Until 31 December 2018 LTO providers receiving a call order from NCG may provide the physical effect required under LTOs for high CV gas by nominating or renominating gas flows at the cross-border interconnection points located on the German-Dutch border, among other options. From 1 January 2019 this will no longer be the case. From this date forward, providers submitting long-term bids for the provision of balancing services in the high CV sectors may use a range of points connected to the high CV network areas of the market area including market area interconnection points, storage points, exit points to industrial sites and also cross-border interconnection points but are no longer permitted to use the cross-border interconnection points on the German-Dutch border to deliver this physical effect.

NCG has determined the following LTO requirements for the period from 1 January 2019, 06:00 hours to 1 April 2019, 06:00 hours:

SystemBUY balancing requirements[MWh/h]

Period

January 2019

February 2019

March 2019

High CV zone North (HN)

490*

1,610

1,610

High CV zone Central (HM)

490

1,610

1,610

High CV zone South (HS)

1,900

6,300

6,300

Low CV zones
(West (LW) and East (LO))

720

2,360

2,360

Total required

3,600

11,880

11,880

* The balancing requirements for the balancing zone HN have been reassessed and updated accordingly.


Contract periods:

Please note that bids are invited separately for each product for each of the following contract periods:

·         1 January 2019, 06:00 hours until 1 February 2019, 06:00 hours

·         1 February 2019, 06:00 hours until 1 March 2019, 06:00 hours

·         1 March 2019, 06:00 hours until 1 April 2019, 06:00 hours

Please note:
The maximum number of permitted call days per lot and contract period is 14 gas days. 


Bidding period:

If you wish to respond to the above tender invitations, please submit your bids between 23 October 2018, 12:00 hours and 29 November 2018, 12:00 hours using our Bidding Platform.
Due to the many queries NCG has received with regard to the changes coming into effect on 1 January 2019 (see above), NCG is extending the bidding period for this tendering round (previous deadline: 22 November 2018, 12 noon).

NCG will accept bids by
30 November 2018, 12:00 hours by awarding individual contracts (“System Balancing Transaction Agreements”) for the above contract periods.

 

Please note:

With regard to the entry and exit capacity products providers may use to provide LTO balancing services at storage connection points, it should be noted that only firm capacity products, including firm capacity products based on temperature-dependent or load-dependent product specifications, are permitted. Use of interruptible capacity products or capacity products that are subject to transportation route restrictions (“restrictedly allocable”, in German: “beschränkt zuordenbar” or “bzk”) will not be accepted.

In addition, providers should note that they have an obligation to ensure that they are in a position to deliver at the agreed delivery rate at any time throughout the agreed contract period (with due consideration to the maximum number of permitted call days applicable in each case). NCG does not consider this to be the case where a provider enters into a delivery commitment as part of a trade transaction that is effected before the applicable three-hour lead time has passed where it is to be expected that the provider can only meet this delivery commitment by making use of the entry and/or exit capacity (as the case may be) the provider is holding available for LTO purposes. The mere possibility of booking the required capacity ex post on a short-term basis will not be deemed sufficient to ensure the provider’s availability as required under the LTO product rules, given the uncertainty as to whether or not the provider will actually succeed in booking the required amount of capacity.

Ansprechpartner

Michael Kutz
T + 49 (0) 2102 59796 944
Sina Ketschau

T + 49 (0) 2102 59796 991
Carolin Tuppat

T + 49 (0) 2102 59796 932
Julia Vos

T + 49 (0) 2102 59796 969

E balancing-gas@net-connect-germany.com