PUC approves new regulation for the operation of Inčukalns underground gas storage
On October 1, the Public Utilities Commission (PUC) approved new rules for the use of Inčukalns underground gas storage. The regulatory changes have been made in relation to the increased storage role in natural gas supply throughout the Baltic region.
The new rules determine that an auction procedure for booking products of storage capacity — bundled capacity product, two year bundled capacity product and interruptible capacity product — is to use an auction procedure providing for the setting of a single premium. The auctions have a specific timetable – from mid-March to mid-August. At the same time, it should be noted that the holding of storage capacity reservation auctions depends on the capacity available for reservation.
The interruptible capacity product that replaces the market product is intended for cases when capacity of all the available bundled capacity product and the two year bundled capacity product is not auctioned in the first two rounds of auctions.
The new stock-transfer product aims to stimulate users to remove as much natural gas as possible from storage by the end of the withdrawal season to ensure the storage is sustainable.
The arrangements for the use of capacity products and the transfer of stocks have also been clarified and other changes have been made.
These Regulations take effect on October.