Undesirable balancing behaviour

This decision, which came into force on 1 January 2024, introduces rules that specify the responsibility of network users to balance their balancing portfolios in order to minimise the need for GTS to take balancing actions. The decision defines undesirable balancing behaviour and sets out the consequences: a financial levy for undesirable balancing behaviour by a shipper and possible revocation of the licence in the event of substantial undesirable balancing behaviour. This resolution contributes to a more effective balancing regime.

In order to transport gas safely and efficiently, the gas transport network must be in balance: the transport network must remain at the proper pressure, which in principle requires that the amount of gas fed into the network be equal to the amount withdrawn. The ACM's resolution gives concrete substance to the responsibility that shippers have to minimise the need for GTS to take balancing actions. This obligation stems from the European Network Code on Balancing (NC BAL).

The decision defines what constitutes (substantial) undesirable balancing behaviour and the consequences thereof:

• In the event of undesirable balancing behaviour, an (additional) financial levy of 30% of the amount of the balancing action will be charged.
• In the event of substantially undesirable balancing behaviour, the ultimate consequence may be the withdrawal of a shipper's licence.

Undesirable balancing behaviour applies if the following four criteria are met:

1. A balancing action has taken place
2. The shipper is one of the causers of the balancing action
3. The shipper's POS position exceeds 15% of the dark green zone boundary value
4. In addition, at least one of the following circumstances must apply:
   1. The portfolio is mainly balanced via TTF. This is the case if one of the following situations occurs:
      • i.    The value of the TTF allocations is greater than the sum of entry and exit allocations
      • ii.    The portfolio has no allocations at physical entry or exit points
   2. The POS position is larger than the total portfolio size.

The rules governing undesirable balancing behaviour are laid down in Articles 4.1.4.7 to 4.1.4.9 of the Dutch Transport Code Gas LNB. An annual evaluation of the effectiveness of this decision is carried out. 

The first time a shipper meets the criteria for undesirable balancing behaviour, the shipper will receive a warning without a financial penalty. A financial penalty will apply for each subsequent occurrence. This will be invoiced in the month following the invoicing of the relevant balancing actions.