ACER and ENTSOG publish their Joint Policy Paper with recommendations to mitigate misconduct in EU gas balancing markets


What is it about?

​​​The EU Agency for the Cooperation of Energy Regulators (ACER) and the European Network of Transmission System Operators for Gas (ENTSOG) have jointly published a policy paper with recommendations to mitigate potential misconduct in EU gas balancing markets. This paper incorporates the feedback received in the public consultation held between 21 September and 3 November 2020.

This policy paper includes recommendations related to good practices for ex-ante monitoring checks on balancing and creditworthiness, and cross-border exchange of information. It also includes good practices currently implemented for proactive measures and the possibility for reactive measures in case of balancing misconduct identified in another Member State.

The policy paper refers to the following key proactive measures to improve the correct functioning of the market:

  • Follow-up the creditworthiness of the network user to ensure that sufficient financial safeguards are available.

  • Implement “Know your customer" and “due diligence" policies to screen obviously fraudulent market participants and remove them from the sales ledgers.

  • Exchange of information at a cross border level amongst balancing operators, ACER, national regulatory authorities and ENTSOG to share intelligence early on about misconduct cases.

The policy paper equally highlights that reactive measures with immediate outcome to recover the damage caused or stop its proliferation:

  • Notify and/or drawing guarantees of the network user in case of misconduct.

  • Impose partial restriction to the participation of the network user in the market (nominations restrictions, capacity reservation restrictions).​

  • Suspend the network user's contract or the possibility of the withdrawal of licence.

The paper will inform the current European regulatory framework on potential amendments to the Balancing Network Code. In particular, the paper underlines of the provisions of the Balancing Network Code on neutrality principles, that effective actions in a proactive and reactive way should take place to prevent losses due to balancing misconduct.

The policy document is available on the ACER website

Access the responses of the public consultation​.