NMa dismisses objections against new balancing regime for gas industry

The NMa has dismissed the objections that had been filed against the new balancing regime and the new market model for the gas industry. By doing so, the NMa upholds the decision on the balancing regime and market model that it had previously taken.

The introduction of the new balancing regime and the new market model promotes trade on the gas market. As a result thereof, the NMa is expecting an increase in gas trade, which could lead to lower consumer gas prices. The aim of a balancing regime is to make sure that the amount of gas that is withdrawn from the network does not exceed the amount that is injected (and vice versa). This is needed in order to be able to keep network pressure balanced. For transporting natural gas securely, the transport network must be balanced.




The new balancing regime is a market-based regime. This is made possible because those parties that wish to transport natural gas on the network, the so-called Program-Responsible Parties (PRPs), are all able to help keep the entire network balanced. They can do so based on hourly information of their own gas flows. This information will help them decide when to buy or produce additional gas or sell gas in order to keep the network balanced. By remaining balanced themselves, the PRPs automatically keep the network balanced. If an imbalance does occur, parties can help Dutch transmission system operator GTS restore network balance at a market-based fee. The party that causes the imbalance must foot the bill for the gas that is needed to offset the imbalance. Costs associated with keeping the network balanced are thus fairly shared. Under the previous regime, PRPs lacked sufficient information to keep their gas flows balanced, and the fines for imbalances were not market-based.




Market models have rules regarding the purchase and sale of natural gas. The new market model gives parties the right and opportunity to decide for themselves what to do with their supplied gas: use it or sell it. In addition, it offers buyers the option of transferring their responsibility for offsetting imbalances to a third party (private), and yet continue to trade in gas. This was not possible under the previous model.




Appeals against this NMa decision can be filed with the Dutch Trade and Industry Appeals Tribunal (CBb).