Question 4.2.19

Does the definition of Secondary Gas Transportation also included zero priced entry assisted capacity that is often bundled with the purchase of beach gas, and therefore is reportable under REMIT?

A certain transaction for us is the purchase or sale of physical gas at a Beach location with other Market Participants. As part of that contract is the inclusion of free (i.e. zero priced) entry assisted transportation capacity which allows us or the Market Participant to flow the gas from the Beach location into the UK National Transmission System (NTS).

Is the embedded transportation in such contracts reportable under Table 4?

We deem such transactions not to be reportable under Table 4 as the purpose of the underlying transaction is not to trade capacity. In addition, the capacity part of the deal cannot be separated and traded in isolation in these deals.

Could ACER confirm this view is correct?

Answer

According to REMIT, transportation contracts should involve two or more locations or bidding zones concluded as a result of a primary explicit capacity allocation by or on behalf of the TSO.

It is the Agency’s view that entry assisted transportation capacity which allows market participants to flow the gas from a non-balancing area to a balancing area is not a reportable contract.