Distribution of a surplus in accordance with Article 16 of our Balancing Group Contract Terms & Conditions

Distribution of a surplus is provided for in accordance with Article 16 of our Balancing Group Contract Terms & Conditions. Under said provision the market area manager is obliged to distribute any surplus realised within any given levy period following a two-step procedure, provided that the surplus exceeds the projected deficit of the following levy period. 

Who will receive a distribution?

The distribution mechanism is described in Article 16 (12–14) of our Balancing Group Contract Terms & Conditions. Accordingly, in a first step the balancing neutrality charge paid by the balancing group managers is balancing group managers shall be distributed (step 1). Any additional surplus shall be distributed based on the transported offtake quantity relevant for energy balancing purposes of all balancing group managers (step 2). Under both step 1 and step 2, payments will only be made to balancing group managers in charge of master balancing groups, as only they are eligible to receive such payments. 

Payments under step 2 will be made in respect of the allocation time series types non-daily metered (SLPsyn, SLPana) and daily metered (RLMmT, RLMoT), given that only these allocation time series types are within the scope of the provision.

What will be distributed?

The surplus is determined based on an estimate. This is the result of a projection of a surplus for the current period and of a deficit, if any, for the following levy period, respectively. 

In a first step, the full amount of the balancing neutrality charge paid by the relevant balancing group managers will be distributed. If there is any residual surplus, or if no balancing neutrality charges were levied in the prior period, a distribution will be made under step 2 based on a price determined in ct/kWh which will be applied to the allocation time series types listed above. The remaining allocation and data groups do not fall within the scope of this mechanism.

When will the distributions be made?

The distribution will be made at the beginning of the period following the period in which the surplus was determined. 

The final balancing neutrality charge paid for the relevant period on the one hand and the final offtake quantity in kWh on the other must be known for the distribution, since they constitute the basis for determining the distribution amount.

Specifics for balancing groups for biogas

The distribution and settlement payments to balancing group managers in charge of biogas balancing groups will not be made before the invoicing and settlement process for the biogas balancing groups is completed. However, given that the quantities and amounts relevant for billing are already known, this will not affect the overall amount, which, as stated, is based on projections. The sums attributable to the biogas balancing groups will be determined based on the same principles of interpretation as applied in relation to balancing groups for natural gas, and will thus only be suspended until the invoicing for biogas balancing groups has been completed.

Previous distributions

The first surplus of €166.2 million was distributed and settled in April 2014. The distribution and settlement procedure was performed in respect of the summer levy period of 2013 (April to September 2013). A second distribution was made in July 2014 in respect of the winter levy period (October 2013 - April 2014), with 0.005 cent/kWh being paid for the offtake quantities relevant for energy balancing purposes by GASPOOL to the balancing group managers.

Area and Zone overview and entry-/exit points of market area THE due to be launched on 1 october we publish here.

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On 21 April the cooperaton contract regarding the merge of the german gas market areas was signed.

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The Slides of the joined customer events for BGM and balancing gas are published here for you.