Follow-up from Shippers Forum: Force Majeure price incentivizes shippers to balance their portfolio all season
In 2019 Energinet introduced a new price formula for imbalances during Force Majeure situations, such as Emergency. The new formular was introduced to strengthen the incentive for shippers to secure gas for their portfolio during the full winter and spring season.
At Shipper’s Forum on 10 June 2021 we had an extensive dialogue on security of supply for the upcoming winter. As a continuation of this discussion Energinet would like to emphasize the rules that could impact shippers in Denmark in case of a gas shortage.
In case of an Emergency situation, shippers that are not able to deliver gas towards their end consumers, will pay the highest index price registered during the full storage year at either ETF, Gaspool or NCG, for the negative imbalance caused in the system. The Force Majeure price is generally applicable for all negative imbalances during an Emergency situation.
With the Force Majeure price, shippers will potentially pay a very high price for imbalances, if gas for the portfolio is not secured for the full season. To avoid this risk, shippers should secure their gas sourcing throughout the season, via e.g. Ellund, capacity, storage capacity and/or supply contracts with other players.It is also worth mentioning that the price for imbalances may be effected already at the lower crisis levels “Early Warning” and “Alert”, where Energinet are allowed to increase the small adjustment with up to 100 per cent.