UPDATE ON MARKET CONSULTATION OF THE POSSIBILITY TO UTILIZE EXISTING ENTRY CAPACITY CONTRACTS AT DIFFERENT ENTRY POINTS
Energinet has so far received positive feedback from the market regarding the introduction of capacity conversion between different entry point, i.e. Energinets consultation letter of 25 October 2022. Energinet wants to clarify to the market that the new mechanism has not been approved by the Danish Utility Regulator due to the last minute change of Terms and Conditions for Gas Transport. Energinet plans to submit a method application as soon as possible.
Energinet encourage market participants to forward any comments they might have to this new service at latest 1 November 2022.
Please forward your comments togasinfo@energinet.dk.
About the mechanism
The new mechanism is introduced so capacity can be re-utilised between the points Entry Ellund, Entry North Sea, Entry Faxe and Entry Nybro. The mechanism will be activated via the same process as capacity conversion, so shippers who are successful in booking capacity at one entry point, will be able to convert their existing entry capacity contract to the new contract.
The shipper will only pay the capacity price for the new contract, which includes the price for the multiplier in case of a shorter-term capacity product than the original contract, and a possible surcharge if there is an over-demand for the capacity.
The capacity at the original point will be released for booking by the rest of the market.
The mechanism was included in the General Terms & Conditions for Gas Transport from 1 October 2022. It is expected that the mechanism will be included the next 2 gas years.
