Ei has approved the Balancing Responsibility Agreement for gas
The Energy Market Inspectorate (Ei) has approved Swedegas AB's proposal for a new Balancing Responsibility Agreement for gas. The agreement creates a common balancing market for the natural gas networks in Western Sweden and in Denmark.
Ei has examined and approved the parts of the agreement that apply to the West Swedish natural gas system. Parts of the agreement that relate to the Danish natural gas system are regulated by Ei's counterpart in Denmark (The Danish Utility Regulator).
The new Balancing Responsibility Agreement is designed to enable a common balancing market for Sweden and Denmark. Ei's approval is required for Swedegas, which is responsible for balancing the West Swedish Natural Gas System, to be able to apply the new agreement to the balancing responsible gas companies in Sweden.
The decision completes Sweden's implementation of the EU Regulation on Gas of Balancing Transmission Networks (Regulation (EU) 2014/312) on time. This regulation must be implemented in all Member States by April 16, 2019.
Expiry of interim measures
The EU regulation on the balancing of gas transmission networks (Regulation (EU) 2014/312) came into force in 2014.
Since the Swedish natural gas market is small with few players, and the short-term wholesale market for gas is thus not sufficiently liquid, Swedegas has been allowed to apply interim measures during the first five years that the EU regulation has been in force.
The Balancing Responsibility Agreement that Ei has now approved entails a larger geographical market, where both Sweden and Denmark are included. The interim measures will therefore cease when the common balance market becomes reality.