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Guidelines for natural gas traders operating in the unified natural gas market

The single natural gas market, consisting of Latvia, Estonia and Finland as of 1 January 2020, is one transmission entry / exit tariff area and two balancing areas. In order to use the transmission system of the single Estonia - Latvia balancing area, natural gas traders will in future only need one set of contracts for the use of the system in the single balancing area with the system operator Conexus in Latvia or Elering in Estonia. For use of the Finnish transmission system traders need to close contracts with Finnish transmission system operator.

These guidelines cover all the steps a natural gas trader should take into consideration when working within the Estonian-Latvian unified balancing zone and concluding a contract with Conexus for the use of the transmission system.

Main questions and answers:

Steps to be taken to work within the unified balancing zone

The unified IT platform

Measures to be taken for the delivery of gas to clients in Latvia

Settlements and payments

The unified operator Conexus issues an invoice to the trader regarding the reserved transportation and storage capacities (if a contract on the storage of natural gas), has been concluded), the utilization of entry and exit points, the neutrality charge, as well as the balancing and neutrality services.

The trader issues an invoice to the client for the system services, misbalance and neutrality charge.

Conclusion of contracts with the clients

The trader, which has concluded the necessary contracts with the transmission system operator and the operator of the distribution system (if necessary, with the storage operator as well concerning the utilization of the Inčukalns underground gas storage), initiates the conclusion of contracts with the clients.

Registration of contracts

The trader, which has concluded a new contract with a client for the gas delivery, shall register it with the operator of the distribution system.

Contract for the use of the IT platform

In order to execute the capacity reservation and nomination and receive other services within the Estonian-Latvian unified balancing zone from January 1, 2020, the joint IT platform shall be utilized, concluding a contract for the use of the IT system.

Conclusion of a contract with the operator of the distribution system

If it is envisaged to deliver natural gas at the objects, which are connected to the distribution system in Latvia, the trader must conclude a contract with the operator of the distribution system concerning the use of the services of the distribution system. The trader may conclude a contract with the operator of the distribution system concerning the use of the services of the distribution system after the conclusion of the necessary contracts with the transmission system operator.

Conclusion of a contract with Conexus

In order to start working within the Estonian-Latvian unified balancing zone from January 1, 2020, the natural gas traders shall submit documents in accordance with the unified transmission system utilization and balancing conditions.

A service contract and a balancing contract must be concluded with the transmission system operator Conexus, submitting a filled-in application form prior to that.

Registration

A trader must be registered in accordance with the requirements of the regulatory acts.

Regulatory acts