Status on imbalance settlement for gas – correction for invoicing for October 2022
In connection with the latest Shipper's Forum in mid-September, Energinet has pointed out that the invoicing of imbalance settlement has been temporarily put on hold while Energinet investigates a possible deviation in the invoices for the period October 2022. This investigation has led to Energinet finding that a system-related "calculation error" has occurred in the settlement of imbalances for October 2022. The error concerns the inclusion of CAP allocations related to trades in the yellow zone in the imbalance settlement calculations.
Short description of the error and fix
In sent invoices for October 2022, CAP allocations are recognized as follows: Updated CAP allocations based on initial yellow zone trade volumes, but new CAP_pro_rata calculation based on valid measurement data. This results in a redistribution of the original traded yellow zone volume (CAP volume) between the shippers based on valid data instead of the original non-valid measurement data meaning CAP allocations change between shippers.
However, this calculation principle is not correct as CAP allocations for the gas day should not be changed, but be included in the settlement based on the original pro-rata calculation based on non-valid metering data.The calculation principle must thus be corrected in the settlement system so that CAP allocation per shipper at settlement continues to be based on the original volumes that the shippers have based their balancing on during the relevant gas day. Calculation of a new distribution of CAP allocations based on valid data is only to be used when calculating the NPP value.
Correction process in progress - further invoicing is pending
The correction to the settlement system is in process through Energinet's system supplier. Once the correction is completed, Energinet will send out corrections to already issued invoices for October 2022 to the affected shippers. After this, invoicing of subsequent months for the period November 2022 and onwards will commence as quickly as possible beginning with the oldest periods. It is however likely that invoicing all way through to November 2023 will not be achievable this year. Energinet will look into how expectations to outstanding invoices can be shared with each shipper for the purpose of annual reporting.
It should be noted that since the error only relates to the allocation of volumes on CAP, i.e. trades in the yellow zone, only shippers who have been 'causers' in the period are affected by the error. Other shippers' October invoices are considered correct. However, as the correction affects calculations for all months from October 2022 onwards, Energinet will not invoice further imbalance settlement until the correction has been fully implemented and tested. We will provide more information on the resumption of invoicing as soon as this plan has been confirmed with our system supplier.
Energinet apologizes for this error and thank you for your patience while we work to resolve this.
