Final decision Creditworthiness Policy GTS published by ACM
On 14 September 2018 the Dutch regulator Autoriteit Consument & Markt (ACM) published the final decision of the amended creditworthiness policy of GTS. This decision contains a number of changes in Annex 1 of the Transmission Code Gas TSO. The amended Transmission Code intends to simplify GTS’ creditworthiness policy and will enter into force on gas day 1 January 2019.
Amendments in creditworthiness policy
The amendments are:
- The 365 day imbalance methodology will be replaced by a daily imbalance methodology for parties with license A, B or C;
- The initial imbalance exposure ceases to exist;
- VAT will be included in the determination of the exposure for parties registered with a Dutch VAT code with license A, B, C or L;
- The TTF reservation of € 50.000 ceases to exist;
- A fixed imbalance reservation of € 100.000 will be introduced for parties with license A, B or C;
- The financial security must continue to be valid for at least 4 months beyond the expiry date of the contract with an end date which is located furthest in the future for parties with license A, B, C or L.
You can find the publication of the final decision on the website of ACM. The amended Transmission Code Gas TSO (in the Dutch language) can be found at wetten.overheid.nl. A translation in English of the Transmission Code Gas Annex 1 is available on our website.
What are the consequences for you?
The above mentioned amendments will affect the exposure and related credit limit of your organisation.
Please, make sure your organisation meets the amended creditworthiness requirements as of gas day 1 January 2019.
This means that, in case your expected exposure will exceed your (current) credit limit, you have to provide additional financial securities in advance. In case additional securities are required, please take into account the amount (€) as well as length (period). According to the changed policy, financial securities must be valid for at least 4 months longer than the end date of the transmission contract with an end date which is located furthest in the future (this period is currently 2 months).
To determine your exposure, you can use our exposure calculator on our new webpage. On this page you will find more detailed information.
The amended credit worthiness policy affects every customer. A large number of customers has to increase and/or extend their securities, which takes processing time within GTS. Therefore we request our customers to provide us their final additional securities as soon as possible but not later than 1 November 2018. Securities provided after 1 November 2018 will be processed on a best effort basis. A final security is a valid security which is accepted by GTS.
Financial data in Gasport
During the second half of September 2018 we will process the following amendments in Gasport. These changes are visible and affect your credit space with immediately:
- The imbalance reservation (€ 100.000) will start per 1 January 2019;
- The LDC reservation will be published including VAT per 1 January 2019;
- The TTF reservation (€ 50.000) will cease to exist per 1 January 2019;
- The inititial PV exposure will cease to exist per 1 January 2019.
Additional securities will be visible immediately after processing.
VAT (if) applicable on services and an imbalance based on the daily imbalance will be visible in Gasport as of 1 January 2019.
If you have any questions or in case you want to supply additional securities: please send your e-mail or scanned security to our customer desk:
Shipper Customer Desk GTS
Telephone: +31 50 521 33 33