CHAPTER VI

WITHIN DAY OBLIGATIONS

General provisions
Article 24
1
A transmission system operator is only entitled to apply within day obligations in order to incentivise network users to manage their within day position in view of ensuring the system integrity of its transmission network and minimising its need to undertake balancing actions.
2
Where the transmission system operator is required to provide information to network users to enable them to manage their exposures associated with within day positions, it shall be provided to them regularly. Where applicable, this information shall be provided upon a request submitted by each network user once.

Types of within day obligations
Article 25
There are three types of within day obligations, each incentivising the network user for a specific objective as set out in this Article:
1. System-wide within day obligation
shall be designed to provide incentives for network users to keep the transmission network within its operational limits and shall set out the following:
  1. the operational limits of the transmission network within which it has to remain;
  2. the actions the network users can undertake to keep the transmission network within the operational limits;
  3. the consequential balancing actions of the transmission system operator when the operational limits of the transmission network are approached or reached;
  4. the attribution of costs and/or revenues to the network users and/or consequences on the within day position of these network users resulting from balancing actions undertaken by the transmission system operator;
  5. the related charge which shall be based on the individual within day position of the network user.
2. Balancing portfolio within day obligation
shall be designed to incentivise network users to keep their individual position during the gas day within a pre-defined range and shall set out the following:
  1. for each balancing portfolio the range within which this balancing portfolio has to stay;
  2. how the range referred to above is determined;
  3. the consequences for network users not staying within the defined range and, where appropriate, details of how any corresponding charge is derived;
  4. the related charge which shall be based on the individual within day position of the network user.
3. Entry-exit point within day obligation
shall be designed to provide incentives for network users to limit the gas flow or the gas flow variation under specific conditions at specific entry-exit points and shall set out the following:
  1. the limits in the gas flow and/or the gas flow variation;
  2. the entry and/or exit point or groups of entry and/or exit points to which such limits apply;
  3. the conditions under which such limits shall apply;
  4. the consequences of not complying with such limits.
This obligation is additional to any other agreements with final costumers containing, amongst other things, localised specific restrictions and obligations regarding the physical gas flow.

Requirements for within day obligations
Article 26
1
The transmission system operator may propose to the national regulatory authority a within day obligation or an amendment thereof. It may combine features of the different types described in Article 25 provided the proposal meets the criteria set out in paragraph 2. The transmission system operator’s right of proposal is without prejudice to the right of the national regulatory authority to take a decision on its own initiative.
2
Any within day obligation shall meet the following criteria:
a
a within day obligation and related within day charge, if any, shall not pose any undue barriers on cross-border trade and new network users entering the relevant market;
b
a within day obligation shall only be applied where the network users are provided with adequate information before a potential within day charge is applied regarding their inputs and/or off-takes and have reasonable means to respond to manage their exposure;
c
the main costs to be incurred by the network users in relation to their balancing obligations shall relate to their position at the end of the gas day;
d
to the extent possible, within day charges shall be reflective of the costs of the transmission system operator for the undertaking of any associated balancing actions;
e
a within day obligation will not result in network users being financially settled to a position of zero during the gas day;
f
the benefits of introducing a within day obligation in terms of economic and efficient operation of the transmission network outweigh any potential negative impacts thereof, including on liquidity of trades at the virtual trading point.
3
The transmission system operator may propose different within day obligations for distinct categories of entry or exit points with the aim to provide better incentives for different categories of network users in order to avoid cross subsidies. The transmission system operator’s right of proposal is without prejudice to the right of the national regulatory authority to take a decision on its own initiative.
4
The transmission system operator shall consult stakeholders, including the national regulatory authorities the non-UK regulatory authorities in adjacent balancing zones,, the affected distribution system operators and transmission system operators and non-UK TSOs in adjacent balancing zones, on any within day obligation it intends to introduce, including the methodology and assumptions used in arriving at the conclusion that it meets the criteria set out in paragraph 2.
5
Following the consultation process, the transmission system operator shall produce a recommendation document which shall include the finalised proposal and an analysis of:
a
the necessity of the within day obligation, taking into account the transmission network’s characteristics and the flexibility available to the transmission system operator through purchase and sale of short term standardised products or use of balancing services in accordance with Chapter III;
b
the information available to enable network users to manage in a timely manner their within day positions;
c
the expected financial impact on network users;
d
the effect on new network users entering the relevant market, including any undue negative impact thereon;
e
the effect on cross-border trade, including the potential impact on balancing in adjacent balancing zones;
f
the impact on the short term wholesale gas market, including the liquidity thereof;
g
the non-discriminatory nature of the within day obligation.
6
The transmission system operator shall submit the recommendation document to the national regulatory authority for the approval of the proposal in accordance with the procedure set out in Article 27. In parallel, the transmission system operator shall publish this recommendation document, subject to any confidentiality obligations that it may be bound by ....

National regulatory authority decision making
Article 27
1
The national regulatory authority shall take and publish a motivated decision within six months following the receipt of the complete recommendation document. In deciding whether to approve the proposed within day obligation, the national regulatory authority shall assess whether this within day obligation meets the criteria set out in Article 26(2).
2
Before taking the motivated decision the national regulatory authority shall consult with the other national regulatory authority and the non-UK regulatory authorities of adjacent balancing zones and take account of their opinions. ...

Existing within day obligations
Article 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Words in Art. 26(4) inserted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 2 para. 7(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 26(4) inserted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 2 para. 7(2)(b); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 26(6) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 2 para. 7(3); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 27(2) substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 2 para. 8(2); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 27(2) substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 2 para. 8(3); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 27(2) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 2 para. 8(4); 2020 c. 1, Sch. 5 para. 1(1)
Art. 28 omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 2 para. 9; 2020 c. 1, Sch. 5 para. 1(1)