Regulatory framework
As known, the Italian Regulatory Authority for Electricity, Gas and Water System, with Decision 312/2016/R/GAS, in defining the introduction of the "new natural gas balancing regime”, outlined a gradual transition, divided into a first transitional phase, already operational since 1 October 2016, and a second phase (i.e. regime) which provides for the redefinition of the natural gas market design (MGAS), within which, in addition to the Day-Ahead Market (MGP-GAS), the Intra-Day market (MI-GAS) and the Forward Market (MT-GAS), should also be managed the locational market products (MPL) and the market for regulating the volumes of gas stored (MGS), currently organized - temporarily - as part of the natural-gas balancing platform (PB-GAS).
With the subsequent Decision 66/2017/R/GAS, the AEEGSI, in regulating the functional aspects for the implementation of the new natural-gas balancing system regime, has provided that, with the execution of transactions concluded in market sessions relating to the gas day 31, 2017, the PB-GAS, referred to in Article 5 of Decision ARG/GAS 45/11, shall cease to operate, while providing for the transitional measures for the management of the markets referred to in Article 2 of Decision 312/2016/R/GAS to lose effect as from the gas sessions of April 1, 2017.
In that Decision, the regulator also ordered that Gestore dei Mercati Energetici S.p.A. (hereinafter: GME) shall define and publish, well before March 31, 2017, the operational procedures functional to the regime phase of the new natural-gas balancing system. Such operational procedures are available at the following link.
Closing of the natural-gas balancing platform (PB-GAS)
As a result of the above, GME notifies that:
A from 1° April 2017:
- the PB-GAS Regulation will be repealed by law, together with the closing of the trading systems relating to the PB-GAS platform;
- all PB-GAS Participants will lose the status of Participant they had, pursuant to Article 17, paragraph 4, of the Regulation above;
- all contractual relationships related to the PB-GAS currently existing between GME and PB-GAS Participants shall be automatically terminated, while keeping all the obligations undertaken by Participants in the PB-GAS and not yet terminated as of the closing of the PB- GAS;
B GME shall not proceed with the admission procedures to the PB-GAS for admission applications submitted from 17 March 2017, in accordance with the terms provided for by Article 17.1 of the PB-GAS Regulations.
New MGAS operational start-up: how to participate
As of 1 April 2017, in compliance with the guidelines laid out by the Regulator with Decision 66/2017/R/gas, the new natural-gas market Rules (MGAS Rules) becomes effective, where the provisions governing the MPL and the MGS will be set out.
In this regard, GME notifies that:
A PB-GAS Participants, not yet qualified as Participants also in the MGAS, if interested in participating in the MGAS, shall submit to GME, in the manner and within the time limit established in MGAS Rules and in the related Technical Rules (DTF):
- i. the participation application to MGAS, prepared in accordance with the format attached hereto (Annex A) together with the documentation referred to in Article 14 of the MGAS Rules;
- ii. The market participation agreement, referred to in Annex B of MGAS Rules, duly signed and initialed on each page.
It is understood that, starting from April 1, 2017, GME will not accept participation applications and market participation agreements prepared in accordance with existing models valid until March 31, 2017 and received by the GME beyond such deadline.
B those who are already qualified as MGAS Participants from 1 April 2017 shall keep such status with respect to the new structure of the MGAS. In this regard, however, under Article 2, paragraph 2.2, of the market participation agreement, where the contracting party, MGAS Participants, does not intend to accept the changes and additions to the MGAS Rules and to the Technical Rules may terminate the existing contract, by sending notice in the defined manner and at the address indicated in the contract.
In any case, the termination shall become effective only after the contracting party has carried out offsetting trades to close their contractual positions outstanding on the forward gas market at the time of submission of the request for termination and in any case only after the contracting party has taken steps to meet obligations arising from the participation in the MGAS.
If the contracting party does not give notice of its intent to withdraw from the contract within fifteen days from the legal publication of such changes, they shall be deemed to have been tacitly accepted.
Without prejudice to the negotiations carried out for an effective withdrawal, the performance of trading on MGAS during that period shall be considered as tacit acceptance of the new conditions. However, in no case shall the above changes and additions may constitute a valid reason for the breach of the Contracting Party obligations as regard as MGAS.
C As for the PB-GAS Participants who are already qualified as Participants also in the MGAS, the access to MGAS platform is - and will be - exclusively reserved for users referenced by each Participant in paragraph 4 of the participation application to MGAS (Annex A), or in subsequent requests for changes/additions. In this regard, it should be noted that, with the closing of the PB-GAS and the simultaneous inclusion of MPL and MGS markets within the MGAS, those who are now authorized to access the information system of the PB-GAS - if not already also admitted to access the computer system of MGAS - will not be automatically allowed to access the MGAS systems. It is understood that the MGAS Participants may at any time change/supplement the names of the names of the parties allowed to access the information system by submitting a request to GME, according to forms "Application for managing users Authorizations” and "Application for managing users Authorizations Integration".
Please, remind that, in order to submit bids/offers in the MGAS, it is necessary that:
- the Participants have previously activated the SEPA Business to Business Direct Debit (SDD B2B) tool for the financial settlement of the gas trades, under the operating procedures described in the relevant Technical Rules;
- if the Participant intends to submit demand offers applying a different tax scheme other than the usual 22% VAT, the statement indicating its tax scheme shall be transmitted to GME, under terms and conditions identified in the relevant Technical Rules;
- The Participant has adequate guarantees, issued in the form of a cash deposit and/or bank guarantee consistently with the form Annex C enclosed to the amended Natural Gas Market Rules.