News / Updates on the gas market

Updates on the gas market

Dear market participant, you can find the updates on gas market prices and conditions compiled below.

Summary:

  • The final tariffs applicable in the tariff year 2021 will be published by 30 November 2020. The proposed prices for Gasgrid’s services (including the reference price = the price of the annual capacity product) will be presented in the tariff consultation material to be published in October before the tariffs are set. The consultation will take three weeks.
  • The Energy Authority has confirmed the updated terms and conditions of balance management, which came into force on 1st of September. In addition, the Energy Authority has confirmed the new terms and conditions of connection service to the transmission system 2nd of September. The Energy Authority will confirm the terms and conditions of Balticconnector for 2021 by the end of the year.
  • Reminder: The annual capacity of the Imatra entry point for the gas year 1.10.2020-30.9.2021 can be booked until 30.9.2020 until 18:00 (EEST).

End-of-year tariff process for 2021 tariffs

Gasgrid Finland organized a consultation on the reference price methodology applicable in Finland from 1 April to 1 June 2020. Gasgrid has proposed a postage stamp methodology, in which entry tariffs are harmonized with other countries of the regional tariff zone (Estonia and Latvia). Gasgrid published a response to the received opinions on 30 June. At the end of July, ACER (Agency for Cooperation of Energy Regulators) published its response to the consultation documents (link).  The Energy Authority will make a reasoned decision on the reference price methodology applicable in Finland by 1.10.2020.

The final tariffs applicable in the tariff year 2021 will be published by 30 November 2020. Simultaneously with the consultation on the reference price methodology organized by Gasgrid, the Finnish Energy Authority organized a consultation on the proposed tariff multipliers and discounts from 1 April to 1 June 2020. The table shows the coefficients proposed for the tariff year 2021 (1.1.2021-31.12.2021).

Capacity product  Tariff multiplier
Yearly product 1,00
Quarterly product 1,10
Monthly product 1,25
Daily product 1,50
Within-day prodcut 1,70

Prior to the publication of the final tariffs, Gasgrid will publish the information in accordance with Article 30 of the Tariff Network Code (TAR NC), which will complement and increase the transparency of the tariff criteria. Gasgrid will organize a separate consultation starting from 1st half of October. The consultation is scheduled to last three weeks.

With regard to the reference price for entry capacity, the transmission system operators (TSOs) of Finland, Estonia and Latvia have established a common tariff area since the beginning of 2020. In order to create a common tariff area, the TSOs entered into an ITC (Inter-TSO Compensation) agreement, in which the price level of entry capacity was agreed for all entry points in the tariff area. With the agreement, Balticconnector has no entry and exit tariffs. In accordance with the principles of the ITC Agreement, it is proposed that the reference price for entry capacity remains the same for the tariff year 2021.

The proposed prices for Gasgrid’s services (including the reference price = the price of the annual capacity product) will be presented in the tariff consultation material to be published in October before the final tariffs are set.

Terms and conditions of the gas market

The updated terms and conditions of balance management approved by the Energy Authority came into force at the beginning of September. The key changes were the introduction of a neutralization fee and the criteria for determining imbalance charges. The unofficial English version can be found here: Terms and conditions.

By decision of 2 September 2020, the Energy Authority has confirmed the terms and conditions of connection services to the transmission system. The terms and conditions shall apply between the TSO and a party that is connected to the transmission network by a new connection or whose connection to the transmission network is subject to significant changes. The terms and conditions shall apply when the connecting party joins the natural gas transmission network or connects natural gas storage facilities, liquefied natural gas terminals, gas production facilities from renewable energy sources or separate pipelines to the transmission network. The terms and conditions can be found here (available only in Finnish): Terms and conditions (FIN).

The current terms and conditions of Balticconnector have been confirmed for 2020. Accordingly, the Energy Authority will confirm Balticconnector’s terms and conditions separately for 2021. The Energy Authority will organize a consultation on the terms and conditions during the autumn before the terms and conditions enters into force.

Reminder – Annual capacity of the Imatra entry point for the gas year 1.10.2020-30.9.2021 can be booked until 30.9.2020 18:00 (EEST)

Gasgrid offers an annual capacity product at the Imatra entry point on a gas year basis. Therefore, it is possible to book the annual product for the gas year starting from the beginning of October (1.10.2020-30.9.2021) until the end of September. The Imatra annual capacity booking time window closes on September 30, 2020 at 6 pm Finnish time. If you want to book Imatra entry capacity as an annual product, please remember to submit a capacity booking request before the above deadline.

Gasgrid Finland Oy is a Finnish state-owned gas transmission system operator with system responsibility. Our task is to ensure safe, cost-efficient and reliable gas transmission for our customers and society.  We actively develop our infrastructure, services and the gas market to promote a carbon-neutral energy system of the future. Read more: www.gasgrid.fi/en

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