Terms and conditions for participation in market demand assessments carried out as part of incremental capacity processes conducted in accordance with Chapter V of Commission Regulation (EU) 2017/459 (Network Code on Capacity Allocation Mechanisms) of 6 April 2017

The gas transmission system operators (“TSOs”) bayernets GmbH, Ferngas Netz GmbH, Fluxys Deutschland GmbH, Fluxys TENP GmbH, GASCADE Gastransport GmbH, Gastransport Nord GmbH, Gasunie Deutschland Transport Services GmbH, GRTgaz Deutschland GmbH, Lubmin-Brandov Gastransport GmbH, NEL Gastransport GmbH, Nowega GmbH, ONTRAS Gastransport GmbH, OPAL Gastransport GmbH & Co. KG, Open Grid Europe GmbH, terranets bw GmbH and Thyssengas GmbH (below referred to as the “Network Operators”) carry out market demand assessments in accordance with Article 26 of Regulation (EU) 2017/459 (Network Code on Capacity Allocation Mechanisms) (below referred to as the “CAM NC”) in order to determine whether and to what extent incremental transmission capacity needs to be created on the borders of the German market area. 

The aim is to evaluate the prospective demand for incremental capacity at adjacent entry/exit-system borders as early and as adequate as possible. The procedure is in line with the European Network Code Capacity Allocation (NC CAM) and is intended to support the development of the gas transmission infrastructure concerned.

In addition to the market demand assessment for incremental capacity according to the CAM NC, the transmission system operators, in cooperation with the German Federal Network Agency BNetzA, have decided to offer a way to non-bindingly request an upgrade of existing capacity products within the framework of the regular incremental capacity cycle.

After the non-binding statement of capacity demand from market participants, the transmission system operators determine whether the stated demand is in principle sufficient for further planning of new grid expansion projects. If this is the case, technical studies will be carried out for possible grid expansions per market area border.

These new capacities are marketed through binding capacity allocation procedures. In the context of auctions, the actual capacity needs of the market participants are finally verified and result in binding bookings. These bookings are then the basis for necessary investments in the respective transmission network.

A new market demand assessment cycle will be initiated in each odd-numbered year, in each case starting immediately after the start of the annual yearly capacity auction held on the European capacity platforms PRISMA (below referred to as “PRISMA”) and Regional Booking Platform (below referred to as „RBP“), and ending eight weeks after the start of that annual yearly capacity auction (“8-Week Deadline”) on PRISMA / RBP. 

Within 16 weeks after the start of the annual auction on the primary capacity platform, i.e. at the latest at the end of 25/10/2021, the requesting participant will receive a response from the responsible TSOs, in accordance with the requirements set out in Article 26(10)(a) to (c) of the CAM NC.

Requests from participants regarding incremental capacity and/ or capacity product upgrade received after the 8-Week Deadline will only be taken into account by the transmission system operators in the report of the next market demand analysis. In this case, the transmission system operator shall reply to the participant within eight weeks after the receipt of the request.

Whether a demand indication was received by the 8-Week Deadline will be determined with reference to the date on which the original version of the completed and signed request form was received by post. 

For the purposes of these Terms and conditions of Participation and the request forms to be completed by Participants the following definitions apply:

“GY” (Gas Year) means the period commencing at 06:00 hours Central European Summer Time (CEST) on 1 October of each calendar year and ending at 06:00 hours (CEST) on 1 October of the following calendar year.

“Freely Allocable Firm Entry Capacity” or “Freely Allocable Firm Exit Capacity” means capacity that allows a shipper to use the relevant network for gas transports from the entry point booked by the shipper to the virtual trading point of the entry/exit-systems where the booking was made or from the virtual trading point of the entry/exit-systems where the booking was made to the exit point booked by the shipper, respectively (see section 3(3) of the German Gas Third-Party Access Regulations (GasNZV)).

“Restrictedly Allocable Firm Capacity” is a capacity that ensures firm network access from one booked entry point to one or several defined exit points of an entry/exit system or firm network access to one booked exit point from one or several defined entry points of an entry/exit system. Where this type of capacity is selected as “Entry Capacity” and/or “Exit Capacity”, a corresponding entry/exit system or entry/exit point must also be specified. 

For participation, the request forms in German and English provided on the website FNB Gas Capacity of the Association of Transmission System Operators Gas e.V. ("FNB Gas") must be used. 

Request for incremental capacity

All non-binding demand indications for incremental capacity must specify at least the information set out in Article 26(8)(a) to (c) of the CAM NC. Where a non-binding demand indication has also been submitted to a TSO in an adjacent country pursuant to Article 26(8)(d) of the CAM NC, this must be indicated in the section “Details of corresponding requests submitted to other entry/exit systems or TSOs affected pursuant to Article 26(8)(d) of the CAM NC”. 

The TSOs shall have the right to treat requests for Restrictedly Allocable Firm Capacity as an expression of demand for Freely Allocable Firm Capacity. Requests for Restrictedly Allocable Firm Capacity will therefore be considered as the minimum requirement for the type of capacity requested.

Request for a capacity product upgrade

A request for capacity product upgrade can only be made if the requester has already contracted a firm capacity product, which is to be upgraded to a higher-quality capacity product. The period of the upgrade does not have to cover the full duration of the original capacity contract.

The non-binding requests for a capacity product upgrade must contain information in each category stated in the corresponding request form on the FNB Gas Capacity website. At least the following points shall be indicated:

• Capacity product to be upgraded (Offering TSO, Point designation, Product designation, Direction of flow from German point of views, Amount already booked by participant in kWh/h)
• Target capacity product
• Specification of additional allocation restriction if capacity product is subject to allocation restrictions
• Period for which the capacity upgrade is requested
• Capacity to be upgraded (capacity already booked by the requester that shall be upgraded)

If a request for incremental capacity and a request for an upgraded capacity product are stated at a market area border for an overlapping period, the TSOs will assess whether the requests result in conflicting requirements. If this is the case, the TSOs reserve the right not to continue processing the relevant requests for a capacity product upgrade in the current cycle. The TSO will inform the requester in such a case.

When filling in the respective request form Participants will be required to accept these Terms and Conditions of Participation. Once the standard request form has been completed, it must be printed and signed, and the original signed version must be sent by post to: 

Vereinigung der Fernleitungsnetzbetreiber Gas e. V., Georgenstr. 23, 10117 Berlin, Germany.

Participants hereby give their consent for the information they provide via the request forms to be used in connection with the market demand assessment process. In particular, without limitation, they hereby give permission to the Network Operators to disclose this information to third parties (for example other TSOs, authorities etc.) and to publish it in aggregated and anonymised form (per entry/exit-systems border) as part of the market demand assessment process, in the context of technical studies or public consultations, for coordination purposes when liaising with the German national regulatory authority Bundesnetzagentur (the “Federal Network Agency”) or in order to carry out any other step that may be required during the process. 

Except as otherwise provided above, the Network Operators shall keep confidential all information they obtain in the course of the market demand assessment process and shall not publish this information or disclose it to any third party in any other way or pass it on to any third party without the express prior written consent of the Participant affected. 

The above confidentiality requirement shall not apply where and to the extent that the Network Operators have a statutory obligation to any national or international authority or other state entity to disclose, pass on or publish the information in question or where they have received a request from the Federal Network Agency. The Network Operators shall further have the right to disclose the above information to any third party who are themselves under an obligation to keep such information confidential, such as public accountants, tax advisers or lawyers, in the context of their respective engagements. 

The provisions set out in section 6a of the German Energy Industry Act (EnWG) shall remain unaffected.