Commission Regulation (EU) No 312/2014Show full title

Article 26 U.K. Requirements for within day obligations

1. The transmission system operator may propose to the national regulatory authority a within day obligation or an amendment thereof. It may combine features of the different types described in Article 25 provided the proposal meets the criteria set out in paragraph 2. The transmission system operator’s right of proposal is without prejudice to the right of the national regulatory authority to take a decision on its own initiative.

2. Any within day obligation shall meet the following criteria:

(a) a within day obligation and related within day charge, if any, shall not pose any undue barriers on cross-border trade and new network users entering the relevant market;

(b) a within day obligation shall only be applied where the network users are provided with adequate information before a potential within day charge is applied regarding their inputs and/or off-takes and have reasonable means to respond to manage their exposure;

(c) the main costs to be incurred by the network users in relation to their balancing obligations shall relate to their position at the end of the gas day;

(d) to the extent possible, within day charges shall be reflective of the costs of the transmission system operator for the undertaking of any associated balancing actions;

(e) a within day obligation will not result in network users being financially settled to a position of zero during the gas day;

(f) the benefits of introducing a within day obligation in terms of economic and efficient operation of the transmission network outweigh any potential negative impacts thereof, including on liquidity of trades at the virtual trading point.

3. The transmission system operator may propose different within day obligations for distinct categories of entry or exit points with the aim to provide better incentives for different categories of network users in order to avoid cross subsidies. The transmission system operator’s right of proposal is without prejudice to the right of the national regulatory authority to take a decision on its own initiative.

4. The transmission system operator shall consult stakeholders, including the national regulatory authorities [F1 the non-UK regulatory authorities in adjacent balancing zones,], the affected distribution system operators and transmission system operators [F2 and non-UK TSOs] in adjacent balancing zones, on any within day obligation it intends to introduce, including the methodology and assumptions used in arriving at the conclusion that it meets the criteria set out in paragraph 2.

5. Following the consultation process, the transmission system operator shall produce a recommendation document which shall include the finalised proposal and an analysis of:

(a) the necessity of the within day obligation, taking into account the transmission network’s characteristics and the flexibility available to the transmission system operator through purchase and sale of short term standardised products or use of balancing services in accordance with Chapter III;

(b) the information available to enable network users to manage in a timely manner their within day positions;

(c) the expected financial impact on network users;

(d) the effect on new network users entering the relevant market, including any undue negative impact thereon;

(e) the effect on cross-border trade, including the potential impact on balancing in adjacent balancing zones;

(f) the impact on the short term wholesale gas market, including the liquidity thereof;

(g) the non-discriminatory nature of the within day obligation.

6. The transmission system operator shall submit the recommendation document to the national regulatory authority for the approval of the proposal in accordance with the procedure set out in Article 27. In parallel, the transmission system operator shall publish this recommendation document, subject to any confidentiality obligations that it may be bound by F3 ....

Textual Amendments

F1 Words in Art. 26(4) inserted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 2 para. 7(2)(a); 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in Art. 26(4) inserted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 2 para. 7(2)(b); 2020 c. 1, Sch. 5 para. 1(1)

F3 Words in Art. 26(6) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 2 para. 7(3); 2020 c. 1, Sch. 5 para. 1(1)