ERSE publishes for public consultation a proposal to amend the balancing model for non-interconnected gas distribution networks

08/08/2023

ERSE – the Energy Services Regulatory Authority - has published for public consultation the proposal to amend the balancing model for non-interconnected gas distribution networks, supplied with Autonomous Gas Units (AGU) and Liquefied Natural Gas (LNG) tanks.

In the current gas balancing model, LNG logistics in the non-interconnected gas networks ensure that each market player has enough gas for its supplies in each AGU. However, this is a complex activity that becomes more difficult as the number of suppliers increases.

The proposed model for balancing non-interconnected distribution networks is based on the concept of the Virtual AGU for the purposes of the commercial gas balances of market players, which greatly simplifies this activity. This solution makes it irrelevant, for the purposes of balancing gas volumes, where the gas volumes of the market players or the injection points for renewable gases are located in the non-interconnected distribution networks.

In addition, the new proposal includes in these non-interconnected networks the possibility of injecting gases of renewable origin into the distribution network, as provided for in Decree-Law No 62/2020 of 28 August.

The simplification of the gas supply process on these networks is expected to increase the number of suppliers and competition. It will also be possible to supply renewable gases on these networks on an equal footing with other gas networks.

Access Public Consultation No 116.