Grid Energy Procurement

Joint procurement of grid energy requirements in Austria’s distribution system 

In order to ensure the continued supply of natural gas, a certain level of energy is required to operate and maintain the system (own consumption) for, e.g., pre-heating of natural gas in pressure-reducing facilities, re-filling individual sections of the system after maintenance and for balancing measuring differences or actual losses in the pipeline system. 

Since early January 2015, AGGM has taken over this responsibility and now centrally procures a major part of the gas required to operate the Austrian distribution systems. 

AGGM took on this role on the basis of an agreement between the companies involved and the regulatory authority, Energie-Control Austria. 

The purpose of this joint procedure is to make use of synergies, such as reduced balancing energy requirements thanks to what is referred to as portfolio effect, or procuring larger quantities at market-based prices at the gas exchange. The required grid energy is jointly procured according to market-based procedures and in accordance with the principles of transparency and non-discrimination.

In carrying out its procurement activities, AGGM pursues the following objectives:


  • Minimising energy costs thanks to market-based procurement
  • Minimising operational efforts required from participating DSOs
  • Ensuring the regulatory authority’s (E-Control Austria) acceptance of the process
  • Providing the related services as required for as many system operators as possible
  • Providing transparent information to the participating distribution system operators and the regulatory authority
  • Transparent and non-discriminatory procurement and handling


Section 24 of the new Gas Market Model Ordinance (GMMO-VO) provides a basis for AGGM to - as of 1 January 2015 - procure the roughly 230,000 megawatt hours (MWh) of natural gas required to supply the grids of the participating distribution system operators, and in this way to cover some 92% of total gas needs of the distribution system operators in Austria. AGGM as the balance group representative of a joint balance group as specified in section 24 GMMO-VO is responsible for the operational handling of the procurement of grid energy requirements. In line with this scheme, the gas required for the Austrian market areas is purchased on the Austrian CEGH gas exchange, with the gas destined for the western market areas of Tyrol and Vorarlberg being currently transported through the NCG (Net Connect Germany) market area via the Oberkappel interconnection point. For the two market areas of Tyrol and Vorarlberg, AGGM considers procuring natural gas from the Leipzig Energy Exchange (EEX) in the future.

Please find further information here.

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