PUBLIC CONSULTATION OF THE DRAFTS OF CONTRACT FOR THE PURCHASE AND SALE OF NATURAL GAS FOR BALANCING AND THE CONTRACT FOR VTP USE

We would like to inform the interested parties that in connection the forthcoming changes in the regulatory framework of the offered services of transmission and as a follow up to the Framework Contract for Access and Transmission and the general Terms and Conditions thereto published on 11 July 2017, Bulgartransgaz EAD developed drafts of a Contract for the Purchase and Sale of Natural Gas for Balancing and Contract for the Virtual Trading Point (VTP) Use. The two contracts shall apply as of 1 October 2017 and we therefore offer them for public consultation.

The documents have been developed in line with the requirements of Regulation (ЕC) 312/2014 establishing a Network Code on Gas Balancing of Transmission Networks and the Natural Gas Market Balancing Rules and Daily Imbalance Charge Methodology, approved by EWRC.

The above documents will introduce on the natural gas market the requirements of the European legislation as regards the establishment of a market-based balancing model that encourages growth in short-term market liquidity, increase in the number of market participants and greater use of short-term standard products by means of the VTP.

The introduction of financial settlement of daily imbalances will create the stimuli enabling users to balance their inputs against their off-takes (their portfolio), thus ensuring a more reliable and secure operation of the gas transmission system.  

Furthermore the consultation of the draft contracts clearly regulates the relations between the Operator, the network users and the natural gas traders as regards the VTP use, both as an instrument to control the balancing portfolio, and as an instrument for a bilateral trade in each of Operator’s balancing areas.

The Contract for the Purchase and Sale of Natural Gas for Balancing is available here

Contract for the Virtual Trading Point (VTP) Use is available here

We will expect positions on the documents by 1 August 2017 (including) at the electronic mail info@bulgartransgaz.bg in Bulgarian or English language.

We look forward to receiving your positions!