Questions and answers

December 30, 2021

CHANGES IN INČUKALNS STORAGE REGULATION

Changes in paragraph 24:


24.1 By 10 January of each calendar year, the system operator shall publish on its website information agreed upon with the Regulator regarding all storage capacity auctions for capacity products, the start of the use period of which is the next storage cycle, indicating the time of storage capacity auctions and the storage capacity products covered by storage capacity auctions
24.2 Auctions for the booking of storage capacity shall take place in accordance with the information published in Sub-paragraph 24.1 of these Regulations, unless: 
24.21. The available capacity of the storage facility for the next storage cycle is less than 5% of the technical capacity forecast of the storage facility for the next storage cycle, which has been notified in accordance with Paragraph 7 of these Regulations; 
24.22. Tariffs for storage capacity products for the next storage cycle have not been approved or set; or 
24.23. The amount of storage capacity available for the booking of the capacity product is 0 kWh.

 

There is new paragraph in Inčukalns Storage Regulation:

33.1 By submitting a new trade notification no later than 30 minutes before the end of the gas day, during the gas day the system user may adjust the amount of natural gas indicated in the trade notification for placement into or withdrawal from the storage facility for the remaining hours of the gas day starting from the hour during which the new trade notification is submitted. The system user shall distribute the quantities of natural gas specified in the new trade notification for placement into or withdrawal from the storage facility evenly over the remaining hours, taking into account the quantity of natural gas stored or withdrawn in the previous hours. The system operator shall reject the new trade notification if the new trade notification increases the amount of natural gas and it exceeds the amount of natural gas that can be placed into or withdrawn from the storage facility during the remaining hours of the gas day, or if the new trade notification reduces the amount of natural gas and it is smaller than the quantity of natural gas stored or withdrawn during the preceding hours according to the trade notification.

Inčukalns Storage Regulation Sub-paragraphs 39.2. and 39.3. are amended as follows:

39.2. the quantity of natural gas transferred or received (kWh) or the volume of the capacity product (kWh/ during the period of use of the capacity product);

39.3. the time of transfer and receipt of the natural gas or capacity product, which shall not be earlier than the next gas day after the submission of the application;

Inčukalns Storage Regulation Paragraphs 40, 41, and 42 are amended as follows:

40. The system operator shall inform the system user about the receipt of the application for the transfer of the natural gas or capacity product in accordance with the standard communication protocol.

41. The system operator shall approve the transaction referred to in the applications specified in Paragraph 39 within one hour after receipt of the second consistent application, if the information specified in both applications regarding the transaction is the same.

42. The natural gas or capacity product for the system user to whom it is transferred shall be available for use with all related rights from the beginning of the gas day of receipt specified in the application, if the transaction confirmation of the system operator has been received.

Inčukalns Storage Regulation Paragraph 71 is amended as follows:

The system user’s credit rating shall be deemed appropriate if it complies with at least one of the following criteria:

71.1. a long-term rating of BBB- or higher under Standard & Poor’s;

71.2. a long-term rating of BBB- or higher under Fitch Ratings;

71.3. a long-term rating of Baa3 or higher under Moody’s

Change in Annex of Inčukalns Storage Regulation (2 year bundled capacity product description)

2.4 Storage capacity available for booking: 4 000 000 000 (four billion) kWh for two consecutive storage cycles. If, at the end of the reservation period for a capacity product, there is less than 4 000 000 000 (four billion) kWh of storage capacity booked within the capacity product, the amount of storage capacity not booked shall be included in the amount of storage capacity available for reservation in the bundled capacity product.

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November 17, 2021

Information about Inčukalns underground gas storage withdrawal capacity congestion management is HERE.

April 19, 2021

  • Question - What happens if less than 5% of stocks remain in the Incukalns gas storage by the end of current storage cycle and there no available capacity for the next storage cycle?
  • Answer - In situation when system user has inventory at end of 2020/2021 cycle within bundled capacity product:  if inventory is less or equal than 5% from available bundled capacity, inventory stays as 1-year bundled capacity product and new cycle tariff (excluding auction premium) is applied. Inventory above 5% will be converted to Stock transfer product and respective tariff will apply.

Same happens also to users who have not booked capacity for cycle 2021/2022.

In situation when system user has inventory at end of 2020/2021 cycle within two-year bundled capacity product booked in 2019: if inventory is less or equal than 5% from available bundled capacity, inventory stays as 1-year bundled capacity product and new cycle tariff (excluding auction premium) is applied. Inventory above 5% will be converted to Stock transfer product and respective tariff will apply.

In situation when system user has inventory at end of 2020/2021 cycle within two-year bundled capacity product booked in 2020, all this inventory stays as two-year bundled capacity product for 2nd year.

In situation when system user has inventory at end of 2020/2021 cycle within market product, all inventory will be converted to Stock transfer product and respective tariff will apply.

March 15. 2021

  • Question 

Could you please clarify one thing for us in regards to paragraph 81.1 of “Rules of Use of the Inčukalns Underground Gas Storage Facility” https://capacity.conexus.lv/uploads/filedir/storage_regulation_eng.pdf
It says: 
81. At the end of the 2020/2021 storage cycle of the system user within the capacity product, the period of use of which expires, the existing stocks shall be transferred to the next storage cycle as follows: 
81.1. regarding the stocks at the end of the storage cycle not exceeding 5% of the total booked capacity within the bundled capacity product and the two-year bundled capacity product, the system user shall be deemed to have booked bundled capacity product for the next storage cycle in the relevant stock quantity to be settled with the system operator in accordance with the tariff for the relevant capacity product set for the next storage cycle;

So does it mean that 5% of expiring 2020/2021 1yBCP product (if our gas inventories remain unwithdrawn with given 1yBCP product) will be converted into 2021/2022 1yBCP product at the base tariff of 1,0226 EUR/MWh or will auction results somehow be taken into account?

  • Answer - Yes, but auction will not affect tariff.

So does it mean that 5% of expiring 2019/2021 2yBCP product (if our gas inventories remain unwithdrawn with given 2yBCP product) will be converted into 2021/2023 2yBCP product at the base tariff of 1,0865*2= 2,1730 EUR/MWh or will auction results somehow be taken into account?

  • Answer - It will be converted into 2020/2021 1yBCP product at current tariff 1,0226 EUR / MWh, auction will not affect tariff.

March 12, 2021

  • Question - how cost of 2 year bundled capacity product will be calculated
  • Answer - (Amount x Tariff x 2) + (Amount x Premium) = Cost of 2YBCP in 2 years

March 3, 2021

  • Question - There is a mistake in the following document Bundled capacity product Auction offer
  • Answer - This shall be corrected
  • Question - Is Auction participant allowed to create extra rows in the Excel file after the row 22 if more than 4 bids are supposed to be submitted? 
  • Answer - Yes, you can create unlimited number of rows.
  • Question Could you please confirm that Auction participant should indicate in this form bid for the premium on top of the base tariff confirmed by LV PUC?
  • Answer - Yes, Auction participant should indicate in this form bid for the premium on top of the base tariff confirmed by LV PUC
  • Question - Are PUC tariffs for storage products confirmed for a 5-year period or there is still probability that base tariffs will be reviewed next year?
  • Answer - Tariffs will be recalculated every year depending on situation in regulative account.
  • Question - While participating in auction for 2-year product shall Auction participant express his bid as EUR/MWh/storage cycle or EUR/MWh/2-storage cycle period?
  • Answer Auction participant shall express his bid as EUR/MWh/2-storage cycle period/

February 5, 2021

  • Question - Missing balancing prices in Conexus web site.
  • Answer - According to Common Regulations for the Natural Gas Balancing of Transmission System, point 8.11. the TSO shall publish on its website the marginal sell price and the marginal buy price of gas day D no later than the end of gas day D+3.
  • Question - Will Conexus publish tariffs sumbitted to Regulator in case if there is an update since submission at end of October 2020?
  • Answer - No, additional information will not be published.