Market model
The Austrian gas market
Since 1 January 2013, the Austrian gas market has been divided into three market areas: East, Tyrol and Vorarlberg. All three market areas have distribution pipeline systems. Only the market area East also includes transmission pipelines. AGGM acts as market area manager for the market area East and as distribution area manager for the market areas East, Tyrol and Vorarlberg.
As market and distribution area manager, AGGM coordinates network control, prepares calculation schemes to determine and designate capacities at entry and exit points and coordinates the expansion and maintenance of long-distance and distribution pipelines.
Balancing model
In the course of the gas market, the balance group model was introduced in Austria. A balance group is a virtual grouping of network users within which a balance is struck between supply and demand (balancing). Balance group members are e.g. gas traders, holders of transport rights (capacity holders), gas suppliers and end customers. Suppliers are companies that supply end customers with gas. Balance responsible parties (BGR) represent the balance group externally and in economic matters. All end customers are members of a balancing group either directly or indirectly (via their supplier). Sub-balancing groups are required for the transfer of transport rights at entry and exit points. In Austria, the balance groups are managed centrally by AGGM.
You can find further information about registering as a supplier or balance group manager here.
Market areas & market participants
Entry-Exit-System
In the Austrian market areas, an entry-exit system is operated for the entry and exit of gas. Gas traders or suppliers can book and trade capacities at entry and exit points independently of each other.
Capacities entitle the entry and exit of gas into and out of a market area. In the Market Area East, capacities additionally enable transport to or from a virtual trading point (VTP) within the market area. The virtual trading point is not assigned to a physical entry or exit point and enables market participants to trade gas. The delivery at entry points and the withdrawal at exit points can be carried out independently of each other.
In the distribution area, AGGM books and manages the entry and exit capacities between the transmission and distribution networks. This ensures an uninterrupted transition there for the suppliers and their customers. AGGM enables the marketing of entry and exit capacities at the cross-border interconnection points in the distribution network. AGGM also controls the gas flow and is responsible for maintaining pressure in the market area.
BGR-transport applications
Balancing group representatives (BGR) transmit - depending on the portfolio - the following transport notifications to system operators:
- Nominations in the transmission system (entry/exit) to transmission system operators
- Storage or production nominations to storage or production respectively
- Trading nominations or exchange orders at the virtual trading point (VTP) to VTP operators or gas exchanges
- Nominations at cross-border interconnection points to market and distribution area managers (MADAM) in the distribution area ("small cross-border traffic")
- Wholesale schedules to MADAM (hourly individual schedule per LPM customer greater than 50,000 kWh/h for network control purposes and per LPM customer greater than 25,000 kWh/h, if opted into hourly allocation)
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Optional nominations for feeders of renewable gases (if an account has been set up to compensate for production deviations)
- No schedule registration for end consumers (with the exception of wholesale schedules).
Balancing
All gas transports through the Austrian market areas are coordinated by AGGM. In addition to the controlled use of the network buffer, the network stability is also actively kept in balance by physical calls for balancing energy.
AGGM procures balancing energy from the European Energy Exchange and from the Merit Order List (MOL) of the balancing authorities. The balancing energy ensures the ongoing balancing of the netted difference between all inputs and outputs (incl. the actual gas consumption quantities). This maintains network stability and security of supply in the Austrian market areas. If these balancing measures are not sufficient to keep the network stable, AGGM can also cut nominations if necessary.
The allocation of individual imbalances per balancing group and their commercial settlement is carried out subsequently by the balancing agency within the framework of clearing.
Market participants & information exchange (simplified)
