CHAPTER IIIOPERATIONAL BALANCING
Article 11Incentives
1.
With the view to foster the liquidity of the short term wholesale gas market, the national regulatory authority can incentivise the transmission system operator to undertake balancing actions efficiently or to maximise the undertaking of balancing actions through the trade in short term standardised products.
2.
The transmission system operator may submit for approval to the national regulatory authority an incentive mechanism that shall be consistent with the general principles set out in this Regulation.
3.
Prior to submitting the proposal referred to in paragraph 2, the transmission system operator may consult stakeholders upon the transmission system operator’s own initiative or upon the national regulatory authority’s request.
4.
The incentive mechanism shall:
(a)
be based on the transmission system operator’s performance via capped payments to the transmission system operator for outperformance and by the transmission system operator for underperformance, that are measured against predetermined performance targets which may include, inter alia, costs targets;
(b)
take into account the means available to the transmission system operator to control the performance;
(c)
ensure that its application accurately reflects the allocation of responsibilities between the parties involved;
(d)
be adapted to the state of development of the relevant gas market where it is to be implemented;
(e)
be subject to a regular review by the national regulatory authority in close cooperation with the transmission system operator to evaluate where and to what extent changes thereto may be needed.