Dynamically allocable capacity (DZK) product at points requiring nomination (transit)

DZK at border crossing points (BCP), virtual interconnection points (VIP) and storage connection points enables network use on a firm basis from a predetermined associated entry point to a specified exit point or from a booked exit point to a predetermined associated entry point. The booked DZK can be used on a firm basis if the corresponding entry and exit capacities are assigned to the same balancing group. For the use on a firm basis, the sufficient use of the booked capacity at the predetermined associated network point is decisive. DZK at BCPs, VIPs and storage connection points are assigned to FZK balancing groups.

The following approved point combinations for the DZK transit product are available:

KASPAR DZK route allocations (xlsx-File)

After the market area merger, existing DZK contracts can be changed to DZK1 contracts by the TSO - the point combinations and product conditions will remain unchanged. Point combinations between different TSOs are possible. Point combinations in which GRTgaz Deutschland entry/exit points are involved will be published on the website of GRTgaz Deutschland in a format agreed between the TSOs.

Conditionally firm freely allocable capacity (bFZK) at virtual interconnection points (VIPs)

From 01.10.2021, we will offer conditionally firm freely allocable capacities only on a temperaturedependent basis at the following VIPs. Under certain temperature conditions. conditionally firm freely allocable capacities are, in principle, both firm and freely allocable within the whole market area and have access to the Virtual Trading Point of THE.

Temperature conditions for the VIPs Oberkappel and Waidhaus:

If the previous day's forecast for the daily average temperature at the metrological station in Essen is greater than zero degrees Celsius, the bFZK capacity becomes interruptible.

Overview of new VIPs

Considering the high implementation effort caused by the market area merger on October 1st, 2021, it is not possible to implement all THE-VIPs at the same time. The progressive introduction of the VIPs to be formed is also based on their respective complexity.

Until the introduction of THE-VIPs the marketing of capacities at the existing NCG and GASPOOL VIPs and IPs will be temporarily continued. As soon as the new THE-VIPs are set up, the transport contracts already concluded at the NCG and GASPOOL VIPs and IPs will be transferred to the new THE-VIPs and the relevant VIP-TSOs, as described in the Supplementary Terms and Conditions of the transmission system operators (TSOs).

A consolidation of the VIPs on the border to the Czech Republic is currently not planned. The current VIPs (VIP Brandov-GASPOOL and VIP Waidhaus NCG) will therefore continue to exist beyond the market area merger and will be renamed as VIP Brandov and VIP Waidhaus by October 1st, 2021.

THE-VIPs will not be offered for marketing in the upcoming annual auction. The first auction date for THE-VIPs will be communicated in good time before the VIP introduction. Therefore, marketing at the existing NCG & GASPOOL VIPs and IPs will initially continue on a temporary basis. As soon as the new THE VIPs are set up, the transport contracts already concluded on the former VIPs will be transferred to the new THE -VIPs and the corresponding marketing TSO as described in the Supplementary Terms and Conditions of the transmission system operators (TSOs)

Overview of new VIPs
According to the current state of planning, the market area merger will combine the following IPs and present VIPs at the borders with the Netherlands (H-Gas & L-Gas), Belgium and Denmark to the following new VIPs:

A consolidation of the VIPs on the border with the Czech Republic is currently not planned. Accordingly, the current VIPs (VIP Brandov-GASPOOL and VIP Waidhaus NCG) will continue to exist beyond the market area merger. An adjustment of the VIP names regarding the new market area is currently being reviewed.

This Press release is available as downloadable document.

Since November 2017, the transmission system operators (TSOs) have been working on the details of the new nation-wide market area, which is to become one of the most attractive and liquid gas trading hubs in Europe. "The signing of the cooperation agreement marks a major milestone in this project. We now have a sound basis for the new joint THE market area, which will start trading on 1 October 2021," said Jürgen Fuhlrott from the project team.

In addition to the cooperation contract, the contracts for the merger of the two market area managers GASPOOL Balancing Services GmbH and NetConnect Germany GmbH to form Trading Hub Europe GmbH were also signed. After entry in the commercial register, Trading Hub Europe GmbH will take over management of the GASPOOL and NetConnect Germany market areas until 1 October 2021 and subsequently become the operator of the new THE market area from 1 October 2021.

Intensive work is currently underway to push ahead with the operational implementation of the new market area. This work has included extensive IT system upgrades, which will undergo thorough testing over the coming weeks. "We are looking forward to the launch of THE with a great deal of confidence. The close cooperation of the TSOs and the market area managers has allowed us to take today’s step," said Bianca Dittmann, another member of the project team. "The continuous and constructive dialogue with the market participants and the Federal Network Agency has also been a key success factor.".

THE will benefit shippers and end users, network operators and balancing group managers alike. Due to its central location in the heart of Europe, the new Germany-wide market area will act as an international hub linking other European gas markets.

Trading Hub Europe GmbH will operate from its two offices in Berlin and Ratingen. The launch date for the nationwide market area is 1 October 2021. The high-pressure pipeline network in the new market area will have a total length of around 40,000 km and connect more than 700 downstream networks.

The market area manager’s responsibilities will include balancing group management, operation of the virtual trading point and the procurement of balancing gas for the new market area. In GY 2019/20, the virtual trading points of GASPOOL and NetConnect Germany registered transactions totalling 3790 terawatts of natural gas and 24 terawatts of biogas. Trading Hub Europe will serve approx. 600 balancing group managers.

Thus, Trading Hub Europe will ensure the operation of the joint market area and make an important contribution to the security of natural gas supplies in Germany and Europe.

(Press release as pdf-Document)

On 21 October 2020, GRTgaz Deutschland and other complainants filed a legal appeal against the Düsseldorf Higher Regional Court (OLG) of 16 September 2020 in the matter of REGENT & AMELIE. The background of the appeal is the so-called REGENT & AMELIE determination of the BNetzA and the associated joint application of the reference price method of the uniform stamp fees in Germany. In the opinion of GRTgaz Deutschland, the decisive point is that the model developed by DNV-GL (DNV GL Energy Advisory GmbH) is a cost-oriented reference price method, which has not been sufficiently appreciated by either the BNetzA or the OLG Düsseldorf. For this reason alone, in the opinion of the complainant, the decision of the OLG Düsseldorf and the BNetzA cannot stand.

The differentiation between cross-system and system-internal network functions, as shown by DNV-GL, shows that differentiation in terms of costs and thus charges is possible and in order. Appropriate cost-oriented pricing, which prevents cross-subsidization between different groups of network users, is also necessary to prevent new costs from being shifted from the distribution network to the transmission sector by means of combined network operators.

At the beginning of the year, the introduction of a joint stamp duty in Germany almost doubled the fees for GRTgaz Deutschland and brought the transit flows to France via Medelsheim largely to a standstill.