Operation of the liberalized natural gas market

According to the currently in place national regime, a Supply License issued under the provisions of the 1st Amendment of the Licenses Regulation (Government Gazette B’ 3430/17.08.2018,  M.D. No. 178065/08.08.2018) is required for the supply of natural gas to final customers. All final customers have been rendered Eligible Customers as of January 1st 2018, i.e. they have the right to freely choose their Supplier.

If a party is interested in using the NNGS for the import and transmission of natural gas so as to meet its customers’ needs it must either be a User of the LNG Facility or of the Transmission System or of both and in turn it is required to sign an Agreement with the TSO (see below Framework Agreement). Suppliers, eligible customers and any person who can provide sufficient guarantees (of financial and technical nature) have the right to become Users, according to the Registry Regulation, and subsequently they register with the NNGS Users Registry. 

In order for the Operator to provide its gasification and transmission services for the use of the LNG Facility and of the Transmission System, the User must accordingly book LNG Gasification Capacity and Transmission Capacity at entry and exit points of the Transmission System respectively. The following restriction must be followed by LNG Facility Users (provided they hold daily LNG reserve or Additional Storage Area) the gasification capacity of the LNG User must equal: i) at least the minimum gasification capacity of LNG quantities and ii) the total reserved capacity by the Transmission User (whom he services) at Entry Pοint Ag. Triada.  

Concerning the entry point “Sidirokastro” (which is also the Interconnection Point between two EU member states) the provisions of Regulation (EU) No 984/2013, which was repealed by Regulation 2017/459/EU, are in place since December 2016 pertaining to the capacity booking via an auction mechanism through the use of a joint platform -the Regional Booking Platform (RBP), while at entry point “Kipi” (which is an entry point from a Third – non-EU-country) RAE has decided, by virtue of the 4th Revision of the NNGS Code (RAE Decision 123/2018- Government Gazette B’ 788/7.3.2018), the application of the rules for capacity offer and booking via auctions, according to Regulation 2017/459/EU. Based on the aforementioned NNGS Code Revision, which is in force as of July 1st 2018, the Virtual Nomination Point is converted into a Virtual Trading Point (VTP), which Transmission Users can access – without the obligation of booking capacity on it- for gas trades between themselves or with the NNGS Operator, thus providing greater flexibility and boosting liquidity in the market. The same revision establishes the operation of the Balancing Platform, where the TSO carries out auctions for the sale and purchase of short-term standard products for the balancing of the NNGS but on which the Users also have the ability to balance their positions (by reducing their deviation charges), and intraday capacity products are adopted as auction products at Interconnection Points.
The   Standard Framework Natural Gas Transmission Usage Agreementbased on the 4th NNGS Code Revision, has been approved by virtue of  RAE Decision 507/2018 (Government Gazette B’ 2473/27.6.2018)and is in force from the date of publication in the Government Gazette, while for the use of the LNG facility RAE Decision 257/2017 – Government Gazette B’ 1443/27.4.2017 is in force.
The Users’ LNG Facility and Transmission System charges (on a firm and interruptible basis) are calculated by the Operator in accordance with the regulated tariffs approved by RAE (RAE Decision 997/2017 (Government Gazette B’ 4737/2017.29.12.2017), according to the Tariff Regulation (RAE Dec. 644/2018 (Government Gazette Β’ 3000/25.07.2018) and corrective, as per the correction of faults, issue of Government Gazette Β’ 3892/07.09.2018) on a long term (≥365 days) and/or on a short term basis (from 1-364 days). Such charges consist of a capacity charge (on the basis of the capacities booked), and an energy charge (on the basis of the quantity of natural gas transmitted), per Entry Point and Exit Point.  

DEPA, taking into consideration the regulatory framework, provides its customers with the possibility of a natural gas supply agreement which does not include transmission services (unbundled supply contract). 

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