Background

The Joint Balancing Zone will consist of a common Balancing Area for Danish shippers and Swedish balance administrators (BA), with planned effect as of 1 April 2019.

The Balancing Area will include the Swedish market area´s Entry/Exit points and the Danish market area´s Entry/Exit points.

Minor changes to the Danish Entry/Exit capacity model may occur. Swedish balancing administrators will experience more changes as they will have to adapt to a balancing model that is in accordance with the European network code on balance (NC BAL), and hereby remove the current free balancing band.

Why create a Joint Balancing Zone?

The main purpose of a Joint Balancing Zone is to enhance the efficiency of cross-border trade between the Swedish and Danish markets and harmonize balancing procedures. Establishing a borderless Danish-Swedish balancing zone is expected to improve competition in the region as a whole.

As a result of the proposed Joint Balancing Zone, the current gas deliveries and offtakes in Sweden and Denmark will take place in one merged Balancing Zone. This means that Shippers and BAs only need to balance their deliveries and offtakes for the Gas Day in one Joint Balancing Zone compared with the two different Balancing models of today.

The European NC BAL (read more in the “fact box”) was introduced in spring 2014. In close dialogue with Danish shippers and distribution companies, Energinet came up with a balancing model that lives up to the NC BAL. It was implemented in October 2014.

At the moment, Swedegas operates under a dispensation from living up to the European NC BAL. The dispensation expires on 1 April 2019. Therefore, Swedegas will need to implement some changes. Both Swedegas and Energinet see that as a welcome opportunity to create a Joint Balancing Zone for the benefit of both markets.

Methodology for approval

Proposed Joint Balancing Zone method statement.