CHAPTER IGENERAL PROVISIONS

Article 1Subject matter

This Regulation establishes a Network Code setting out gas balancing rules, including network-related rules on nomination procedures, imbalance charges, settlement processes associated with the daily imbalance charge and operational balancing between transmission system operators’ networks.

F1Article 2AObligations on transmission system operators

(1.

In any case where a transmission system operator cannot comply with an obligation set out in this Regulation without the cooperation of a non-UK TSO, the obligation must be interpreted as a requirement on the transmission system operator to

(a)

comply with the obligation in so far as it is able to do so without the cooperation of the non-UK TSO; and

(b)

endeavour to cooperate with the non-UK TSO in order to comply with that obligation.

(2.

Paragraph 1 applies so that obligations that apply to transmission system operators at an interconnection point apply to a transmission system operator that is adjacent to a non-UK TSO at an interconnection point.

Article 2Scope

1.

This Regulation shall apply to balancing zones F2to the extent that they are within the United Kingdom or the UK marine area, and taking into account the specific nature of interconnectors.

2.

F3To the extent they fall within the United Kingdom or the UK marine area, this Regulation shall not apply to balancing zones F4of member States that hold a derogation on the basis of Article 49 of Directive 2009/73/EC F5 as it has effect in EU law, unless the national regulatory authority and the member State agree otherwise.

3.

This Regulation shall not apply to reconciliation that would be necessary between the allocations and actual consumption subsequently derived from final customer meter readings when obtained.

4.

This Regulation shall not apply in emergency situations where the transmission system operator shall implement specific measures defined F6... on the basis of Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning measures to safeguard security of gas supply5 F7and other applicable national rules, as appropriate.

5.

The respective rights and obligations originating from this Regulation with regard to network users shall only apply to those network users which have concluded a legally binding agreement, being a transport contract or another contract, which enables them to submit trade notifications in accordance with Article 5.

F8(6.

To the extent it falls within the United Kingdom or the UK marine area, this Regulation does not apply to the balancing zone of another country that is not a member State unless the national regulatory authority determines otherwise.

(7.

If a transmission system operator is regulated by both national regulatory authorities, where relevant they must cooperate with each other regarding the regulation of that transmission system operator.

(8.

If a transmission system operator is regulated by a national regulatory authority and a non-UK regulatory authority, where relevant the national regulatory authority must endeavour to cooperate with the non-UK regulatory authority regarding the regulation of that transmission system operator.

(9.

Any reference to an adjacent balancing zone in this Regulation includes a balancing zone outside the United Kingdom or the UK marine area.

Article 3Definitions

For the purposes of this Regulation, the definitions in Article 2 of Regulation (EC) No 715/2009, F9and Article 3 Commission Regulation (EU) No 984/2013 establishing a Network Code on Capacity Allocation Mechanisms in Gas Transmission Systems and supplementing Regulation (EC) No 715/2009 of the European Parliament and of the Council6 F10... shall apply. In addition, the following definitions shall apply:
  1. (1)

    ‘balancing zone’ means an entry-exit system to which a specific balancing regime is applicable and which may include distribution systems or part of them F11to the extent that the entry-exit system is part of the transmission system of Great Britain or Northern Ireland, or in the United Kingdom and the UK marine area;

  2. (2)

    ‘balancing action’ means an action undertaken by the transmission system operator to change the gas flows onto or off the transmission network, excluding those actions related to gas unaccounted for as off-taken from the system and gas used by the transmission system operator for the operation of the system;

  3. (3)

    ‘neutrality charge for balancing’ means a charge amounting to the difference between the amounts received or receivable and the amounts paid or payable by the transmission system operator due to performance of its balancing activities which is payable to or recoverable from the relevant network users;

  4. (4)

    ‘trading platform’ means an electronic platform provided and operated by a trading platform operator by means of which trading participants may post and accept, including the right to revise and withdraw, bids and offers for gas required to meet short term fluctuations in gas demand or supply, in accordance with the terms and conditions applicable on the trading platform and at which the transmission system operator trades for the purpose of undertaking balancing actions;

  5. (5)

    ‘trading participant’ means a network user or a transmission system operator holding a contract with the trading platform operator and satisfying the conditions necessary to transact on the trading platform.

  6. (6)

    ‘balancing platform’ means a trading platform where a transmission system operator is a trading participant to all trades;

  7. (7)

    ‘balancing service’ means a service provided to a transmission system operator via a contract for gas required to meet short term fluctuations in gas demand or supply, which is not a short term standardised product;

  8. (8)

    ‘confirmed quantity’ means the quantity of gas confirmed by a transmission system operator to be scheduled or re-scheduled to flow on gas day D;

  9. (9)

    ‘daily imbalance charge’ means the amount of money a network user pays or receives in respect of a daily imbalance quantity;

  10. (10)

    ‘daily metered’ means that the gas quantity is measured and collected once per gas day;

  11. (11)

    ‘intraday metered’ means that the gas quantity is measured and collected a minimum of two times within the gas day;

  12. (12)

    ‘non daily metered’ means that the gas quantity is measured and collected less frequently than once per gas day;

  13. (13)

    ‘balancing portfolio’ means a grouping of a network user’s inputs and off-takes;

  14. (14)

    ‘notification quantity’ means the quantity of gas transferred between a transmission system operator and a network user or network users or balancing portfolios, as appropriate;

  15. (15)

    ‘allocation’ means the quantity of gas attributed to a network user by a transmission system operator as an input or an off-take expressed in kWh for the purpose of determining the daily imbalance quantity;

  16. (16)

    ‘re-nomination cycle’ means the process carried out by the transmission system operator in order to provide a network user with the message regarding the confirmed quantities following the receipt of a re-nomination;

  17. (17)

    ‘within day charge’ means a charge levied or a payment made by a transmission system operator on or to a network user as a result of a within day obligation;

  18. (18)

    ‘within day obligation’ means a set of rules regarding network users’ inputs and off-takes within the gas day imposed by a transmission system operator on network users;

  19. (19)

    ‘base case’ means the model for information provision where the information on non daily metered off-takes consists of a day ahead and within day forecasts;

  20. (20)

    ‘variant 1’ means the model for information provision where the information on non daily metered and daily metered off-takes is based on apportionment of measured flows during the gas day;

  21. (21)

    ‘variant 2’ means the model for information provision where the information on non daily metered off-takes is a day ahead forecast

  22. (22)

    F12the UK marine area' has the same meaning given in section 42 of the Marine and Coastal Access Act 2009 .