Italy's power, gas and water regulator, Autorita per l'energia elettrica il gas e il sistema idrico (AEEGSI), has approved new rules for the country's gas balancing system which will come into force from October 1.
The new rules will mean market players have to use short-term standardized products (STSP) to balance their daily positions, though they will now be able to do this 30 days in advance.
The market, known as MGAS, will be operated by the Gestore die Mercati Energetici, which also runs the country's gas bourse, which up to now has been the principal method of balancing the market on a day-ahead basis with the G+1 platform or on a within-day basis, by use of the G-1 platform.
The balancing point is open to all regular PSV users.
As with the existing mechanisms, Snam can use the country's large network of storage sites to perform the physical operations.
While the transactions can take place up to 30 days before the balancing is required, a shipper can also post up its requirements for a period of up to 30 consecutive days.
The cost of adjustment will be Eur0.108/MWh (12.2 cents/MWh) while the average weighted price used will be an average of the system average price from the previous 30 days.
In exceptional circumstances, the marginal price will be replaced by a fixed price of Eur82.80/MWh. The STSPs to be used will be split into two -- title and locational products, according to AEEGSI.
Title products are those available on the virtual market, while locational are specifically nominated at a give, location -- usually an entry or exit point.
In the case of locational products, system operator Snam will have to give at least two hours' notice of the volume either bid or offered as well as the points of the grid that need balancing and the time.
