Consultation on procedure use neutral gas price
On Monday June the 26th of 2017, GTS informed you about a change in the procedure of the neutral gas price by this news item. That is, starting Tuesday June the 27th of 2017, if no neutral gas price is published by ICE ENDEX for a particular gas day, GTS will use the day-to-day reference price of PEGAS.
As indicated, this is a temporary alternative procedure and in parallel GTS has worked on a structural and formalized solution. GTS wants to take this opportunity to inform and also invite you to participate in an informal market consultation.
GTS has developed two alternatives to determine the neutral gas price, which we would like to submit to you. GTS expects both alternatives to provide a future-proof solution for determining the neutral gas price.
Alternative 1: Formalizing the current temporary procedure
GTS uses the neutral gas price as published on the website of ICE ENDEX. If no neutral gas price can be calculated by ICE ENDEX for a particular gas day, GTS will use the day-to day reference price of PEGAS. We will use the DRP index that you can find through this link, TTF DA for weekdays, TTF SAT for Saturdays and TTF SUN for Sundays. This alternative requires a code change of the Transmission Code Gas TSO because the code does not define how to determine the neutral gas price when it is unavailable. Also the day-to day reference price of PEGAS is calculated differently than mentioned in the Transmission Code Gas TSO.
Alternative 2: Implementing neutral gas price calculation at PEGAS
For the determination of the neutral gas price, the spot prices of the PEGAS (EEX) stock market will be used. The neutral gas price per gas day, as defined in the Transmission Code Gas TSO, is determined as the weighted average price of all contracts concluded on the gas exchange during the day, the day before and two days before the day of delivery. To make this possible, PEGAS has to implement this calculation method. This alternative does not require a code change because PEGAS (EEX) is a exchange designated by the Minister and the calculation method is in accordance with the Transmission Code Gas TSO.
In addition, we propose to define a back-up method in the event that unexpectedly the neutral gas price cannot be determined. In this way, the current shortcoming in the Transport Code Gas TSO will be closed and no uncertainty about the determination of the neutral gas price is left. We propose to use the latest neutral gas price available in case no neutral gas price can be determined.
GTS would like to invite you to participate in an informal market consultation and ask you for a written response by August the 11th of 2017 about the above mentioned two alternatives and / or other possible alternatives. In addition, we ask you to share your ideas with regard to the back-up method. We request you to send your written response, indicating Ꞌconsultation NGP methodꞋ, to email@example.com or use our post address (GTS BV, PO Box 181, 9700 AD GRONINGEN) in attention to Mr. K. Vogel.
Of course, it is possible to receive more information about the alternatives and procedure during this consultation period or to exchange ideas about the standard and back-up method. GTS would like to give the opportunity to ask questions during, before or after the NC TAR market session, on July the 13th of 2017 in The Hague. You can also ask for an individual consult. This can be requested via the Customer Desk.
After the consultation period, GTS will present a report containing the reactions of market parties, GTS's response to this and the intended structural solution. This intended solution will also be published to the market during an informal GEN which is expected to take place in late August. Comments from market parties are disclosed in this report unless explicitly stated that it is a confidential response.
For more information, please contact our Customer Desk by phone (+31 (0) 50 521 33 33) or write an email (firstname.lastname@example.org).