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Entry-exit gas system
European Union Electricity Market Glossary

 

The entry‐exit model is nof defined in the EU gas directives or regulations, however, these legal acts allow for describing constituent features thereof.

 

Hence, the entry-exit system is a “market access model, which allows network users to book capacity rights independently at any entry and any exit point of the system, thereby creating a dynamic way to transport gas through zones, allowing an easier reach to multiple end-users” (ACER Report of 5 April 2019 on the conditionalities stipulated in contracts for standard capacity products for firm capacity, p. 3).

 

The reference to the entry-exit gas system can be found in Recital 19 and Article 13(1) of the Gas Regulation (Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on the conditions for access to the natural gas transmission networks), which read, respectively:

 

- “it is vital that gas can be traded independent of its location in the system. The only way to do this is to give network users the freedom to book entry and exit capacity independently, thereby creating gas transport through zones instead of along contractual paths”;

 

- “Tariffs for network users shall be non-discriminatory and set separately for every entry point into or exit point out of the transmission system.”[...] “Member States shall ensure that [...] network charges shall not be calculated on the basis of contractual path”.

 

In the said document of 5 April 2019 the EU energy market regulator expresses on opinion that the entry-exit model “puts an end to trading along contractual paths”.

 

Moreover, the following features of the full implementation of an entry-exit system are noted:

 

- decoupled contracting and utilisation of capacity at the system’s entry and exit points, so that network users can freely use any entry and exit point of the system, and are not obliged to contract specific paths within the transmission system;


- unrestricted access to the Virtual Trading Point (‘VTP’) for all network users who have booked firm capacity at either entry or exit points;


- free allocability of standard firm capacity products, including short-term products (daily, within-day), to access, and hence facilitate trading at, the VTP.

 

According to the ACER:


“Full access to the VTP in an entry-exit system is considered crucial for a well-functioning gas market. The VTP allows gas trading, virtual title products transfer within the entry-exit zone and underpins the trading activity that takes place in the organized markets. The VTPs put an end to traditional trading “at the flange”, which was bilateral trading at physical points of the system. Firm capacity products allow for the effective use of an entry-exit system, since firm products allow network users freely and independently to book and allocate capacity at entry and exit points and reach the VTP on a firm basis.”

 

However, Recital 4 of the Gas Directive (Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas) notes that “at present there are obstacles to the sale of gas on equal terms and without discrimination or disadvantages in the Community. In particular, non-discriminatory network access and an equally effective level of regulatory supervision in each Member State do not yet exist”.

 

The ACER conclusion is that at present the conditionalities stipulated in contracts limit the access to the full entry-exit system, and deviate from the underlying gas market design foreseen by the Gas Directive and the Gas Regulation, in terms of full network access and access to greater liquidity.

 

 

   

 

 

 

 

IMG 0744

    Documentation    

 

 

 

 

Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (Gas Directive)

 

Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on the conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005 (Gas Regulation)


ACER Report of 5 April 2019 on the conditionalities stipulated in contracts for standard capacity products for firm capacity






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Last Updated on Sunday, 14 April 2019 13:25
 

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