PLINACRO d.o.o. - Operator plinskoga transportnog sustava - Congestion management mechanism

Congestion management mechanism - "Use It or Lose It"

Pursuant to the provisions of article 14 of the Council Regulation (EU) 2022/2576 of 19 December 2022 enhancing solidarity through better coordination of gas purchases, reliable price benchmarks and exchanges of gas across borders and a Decision by Croatian energy regulatory agency on the implementation of mechanism as of article 14 item 7(a) (implementation of a firm day ahead use-it-or lose-it mechanism in accordance with Regulation (EU) 2017/459 and taking into consideration point 2.2.3 of Annex I of Regulation (EC) No 715/2009), we would like to inform you about the following.

Starting from 31.3.2023. for gas day 1.4.2023, at all interconnection points in both directions will be used congestion management mechanism from article 14 item 7 (a) of the Regulation 2022/2576 - a firm day ahead use-it-or lose-it mechanism in accordance with Regulation (EU) 2017/459 and taking into consideration point 2.2.3 of Annex I of Regulation (EC) No 715/2009. Pursuant to the provisions of the stated regulations, each user who at the single interconnection point has booked capacity in the amount larger than 10% of the total technical capacity in the previous gas year falls into the category for capacity withdrawal.

The process begins with the regular nomination for the transmission system capacity use which needs to be submitted by 2 p.m. on the day D-1 for a gas day D. If BRP fails to submit the nomination in compliance with the Network code of the transmission system, it will be assigned zero.

The process of capacity "withdrawal" starts at 3 p. m. on the day D-1. A part of the firm capacity will be withdrawn from each user, at the shipper pair level, who has nominated less than 100% of their booked capacity, and who meets the previously mentioned 10% share criterion, in the manner shown in the table below:

NOMINATION	Minimal quantity limit for capacity in a renomination [kWh/d]	Maximul quantity limit for firm capacity in a renomination [kWh/d]
20% < N ≤ 80%	C * 10%	C * 90%
N > 80%	C * 10%	C - (C - N)/2
N ≤ 20%	N / 2	C * 90%

N – total BRP nomination for an individual shipper pair at the relevant interconnection point
C – total capacity booking for an individual user at the relevant interconnection point

The same amount that was withdrawn from the user as firm capacity will be allocated to him as interruptible capacity for the period from 3 p.m. to 5 p.m. Daily auction, where in addition to the available capacity also the so-called withdrawn capacity is offered, ends at 5:00 p.m.

After the auction ends and the results are collected, the capacity is distributed in such a way that the initially available capacity is distributed first, and then the withdrawn capacity is distributed. If all the withdrawn capacity is not booked as a daily product, it is returned to the original owner in proportion to the share in the total withdrawn capacity.

Each of the above mentioned processes will be accompanied by automatic messages from the SUKAP system.

Congestion management mechanism - "Use It or Lose It"

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