Services for network operators

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

For the operation of each natural gas network certain self-consumption quantities are needed, which are necessary to ensure the smooth network operation and thus the natural gas supply.

Since the beginning of January 2015, AGGM, as the balance group representative of a joint balance group in accordance with § 24 GMMO-VO, is responsible for the operational management of the procurement of grid energy requirement and has thus taken over the tasks and services for the joint procurement of these natural gas volumes for the participating system operators as the central processing center.

The purpose of this bundled approach is the use of existing synergy potential, such as a lower balancing energy revenue through the so-called portfolio effect or energy procurement at market-oriented prices at the gas exchange, only made possible by the increased trading volume from the perspective of the system operator.

The joint procurement of network energy needs is non-discriminatory, in a market-oriented and transparent form.

The AGGM procures around 240,000 megawatt hours (MWh) of natural gas per year and thus covers more than 90 percent of the network energy requirements of the distribution system operators.

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

According to the concept, the required natural gas is purchased by AGGM on the Austrian natural gas exchange PEGAS CEGH Gas Exchange, whereby the gas for the western market areas Tyrol and Vorarlberg is currently being transported via Oberkappel interconnection point through the NCG (Net Connect Germany) market area.

Please find further information here.

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