In the gas market, the term allocation describes the distribution or allocation of gas quantities between the market participants. Allocation encompasses the allocation of gas quantities along the entire supply chain: from production, via transport in the transmission and distribution network system, to the suppliers and end consumers. Balance groups are responsible for the balancing and settlement of gas flows in the gas market.

The allocation of individual imbalances per balancing group and their commercial settlement is carried out ex post by the balancing agency within the framework of clearing. A quarterly balancing charge determined by the balancing agency ensures cost and revenue neutrality and is charged to BGR depending on allocated exits.

The feed-ins and offtakes per balance group are allocated as follows:

In the Austrian balancing model, an intraday incentive system is implemented, which incentivises the hourly balance per balancing group within the gas day. A tolerance range of 4% applies in relation to the allocated exports to end consumers. The sum of the hourly overrun quantities per balance group outside the tolerance range are priced with a specific cost contribution from the difference between the volume-weighted average prices for physical balancing energy purchases and sales of the gas day. However, the cost contribution is only charged if AGGM has bought and sold physical balancing energy on a gas day in a market area.