Market model

Since 1 January 2013 the gas market in Austria is divided into three market areas: East, Tyrol and Vorarlberg. Whereas only the Market Area East comprises transmission lines. The distribution areas in each market area exclusively comprise distribution systems.

AGGM is responsible for coordinating system operation which includes the establishing a uniform methodology for the calculation and announcement of capacity at the entry/exit point and for coordinating the development and maintenance of the transmission and distribution network. Apart from these rather technical responsibilities, AGGM manages the balance groups operating in the Eastern market area. Each customer is a direct or indirect (i.e. via their supplier) member of a balance group.

According to the entry/exit system, capacities can be booked and traded independently of each other at the entry and exit points. On the basis of these capacity bookings at the entry/exit points, the traders and suppliers have the right to inject or withdraw gas into or from the respective market area and transport it to or from the market area’s virtual trading point (VTP), provided that it is located within the market area (only in the market area East). The virtual trading point, which is not assigned to a physical entry or exit point, enables market participants to purchase and sell natural gas without having to book capacity. Gas can be injected at an entry point regardless of whether gas is withdrawn at the exit point and vice versa, thanks to the coordination – and active balancing where required – of all gas transports in the market area by AGGM. In order to assure network stability AGGM is entitled to curtail exit-nominations of balance groups.

Distribution Area

AGGM books and utilizes the entry and exit capacities in the market area between the transmission and distribution systems in order to ensure uninterrupted handover to the suppliers respectively the final customers. In addition, AGGM is responsible for coordinating the entry and exit capacities at the cross-border interconnection points within the distribution area and oversees the gas transports to the production and storage facilities. AGGM controls the gas flow and is responsible for pressure maintenance within the distribution area.

COSIMA

The COSIMA gas market model was successfully established in the Tyrol and Vorarlberg market areas as of 1 October 2013, in this way connecting the Tyrol and Vorarlberg market areas to the Trading Hub Europe (THE) gas market. COSIMA was required because the Tyrol and Vorarlberg market areas are not connected to the Eastern market area, but do have physical access to the THE market area. Although there are specific regulations for the Tyrol and Vorarlberg market areas, they largely correspond to those applicable the Eastern market area. As part of COSIMA, AGGM books exit capacities with the upstream transmission operator in Germany and withdraws balancing energy from the German THE market area. The transfer of the gas for Tyrol and Vorarlberg takes place through nomination at THE’s VTP. AGGM accepts the gas at the German VTP and arranges its transport to the Tyrol and Vorarlberg market areas. In line with the ‘allocated as nominated’ principle, gas flows handed over at the German VTP are considered injected directly in the Tyrol or Vorarlberg market areas. There are no other distinctive features to be taken into account by the German balancing groups regarding transports to the Tyrol and Vorarlberg market areas. The gas transfer from the German balancing groups at the German VTP are allocated to the corresponding balancing groups in Austria. The nomination messages relating to the supply to consumers in Tyrol and Vorarlberg and transits that are submitted by these balancing groups are netted and set off against the gas flows transferred at the German VTP by the corresponding balancing groups in each case. These gas volumes are subject to the mechanisms for settling balancing energy as specified by the Austrian market rules. The competent balancing entity is responsible for settling balancing energy.