ACER Reports Contractual Congestion At 15% of Interconnection Points In EU

ACER wrote on Friday that gas capacity demand exceeds the technical capacity at about 15% of entry and exit sides at interconnection points (IPs) across the EU, with the majority of contractual congestion detected in the South/South East region followed by the South region. 

‘The Agency’s annual congestion report’s main outcome is reflected in a list specifying at which interconnection points the so-called Firm Day-Ahead Use-It-Or-Lose-It (FDA UIOLI) mechanism will have to be applied as a congestion management procedure (CMP) from July 2016 on, if congestion is still found in next year’s report’ reads a note released by the European Agency.  

Commenting on data for 2014-2016, ACER recommended to improve data reliability, and refining congestion definition. 

According to the Agency, Europe is converging and increasingly bettering the procedures to cope with contractual congestion.  

‘CMPs (Congestion Management Procedures) are increasingly applied at IPs in the European Union. Together with the use of interruptible capacity and secondary capacity trading, contractual congestion was alleviated in some cases.’

Meanwhile, Gaz–System S.A. and the Polish Power Exchange signed a letter of intent concerning the development of the wholesale gas market in Poland.

‘The parties will seek to develop and implement optimum solutions with regard to the market mechanisms applicable to the natural gas sector in Poland, and engage in regional cooperation with a view to integrating the domestic market with the European one’ Gaz-system wrote on Thursday.

The company mentioned interconnections to Czech Republic, Slovakia, Lithuania and the LNG Terminal in Świnoujście, which will help the country creating a more efficient gas markets, characterised by a better utilisation of interconnection points.