Głowacki Law Firm

Interruptible/firm products (gas market)
European Union Electricity Market Glossary

 

The definitions for the interruptible and firm capacities in the European gas market can be found in Article 2(13) and (14) 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 stipulates, respectively:

 

- “‘interruptible capacity’ means gas transmission capacity that may be interrupted by the transmission system operator in accordance with the conditions stipulated in the transport contract”;

 

- “’firm capacity’ means gas transmission capacity contractually guaranteed as uninterruptible by the transmission system operator.”

 

It can be observed that firm products were downgraded to interruptible ones when they proved insufficient to access the entry-exit points of a system as firm capacity, however, such a review in itself does not mean, it itself, that the product loses considerably its value (ACER Report of 5 April 2019 on the conditionalities stipulated in contracts for standard capacity products for firm capacity, p. 3). 

 

ACER in the said document of 5 April 2019 notes that some interruptible products function with limited levels of interruption, and still serve the network as a product of a high value. In other cases, interruptions occur more frequently.

 

Given that according to Article 14(1) of the Gas Regulation “Transmission system operators shall [...] provide both firm and interruptible third-party access services. The price of interruptible capacity shall reflect the probability of interruption;[...]” the question remains whether the legislative framework only foresees firm or interruptible capacity products, or other products that have a ‘mixed’ character could also be introduced.

 

 

 

 

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    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 13:17
 

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