Questions & Answers

Questions & Answers

BASIC INFORMATION

The provision of the gas transmission service is based on a concluded transmission contract. Once transmission contract has been concluded, you will be able to apply for a capacity allocation (PP) and transmission ability allocation (PZ) at specific entry/exit points of the transmission system, thereby enabling you to use the transmission system. Information about provision of capacity allocation can be found on our website.

PP is allocated for specific entry or exit points with a physical location, including final customers, distribution systems (DSO), and storage facilities.

PZ is allocated at contractual virtual entry or exit points, such as the gas exchange, the over-the-counter trading point (OTC), or at contractual entry/exit points to/from distribution systems (DSO).

On our website, you will find instructions on how to apply through the Information Exchange System (IES) for a transmission contract and for PP/PZ allocation at domestic points.

In the case of points located on connections with neighboring countries (interconnectors), you can participate in capacity auctions conducted on dedicated auction platforms. Detailed information regarding the conditions for participating in auctions is available on our website.

As a first step, if you want to conclude a transmission contract, please complete the registration process of your company and the first user in the dedicated system for transmission system users - the Information Exchange System (IES). This is necessary because an application for a transmission contract can only be submitted electronically through the IES.

After successful registration, you will be able to submit an application to conclude a transmission contract. Please attach to the application a complete set of documents in accordance with the Transmission Network Code (TNC; a detailed description of the entire process can be found in chapter 6 of that document) and the list of required documents is available on our website.

Throughout the entire process you’ll receive support from a dedicated customer assistant, who will answer all your questions and assist you in completing the entire process successfully.

Concluding a framework transmission contract is free of charge and it doesn’t result in any financial obligations at this stage.

In the case of allocated transmission capacity (PP), you shall pay charges for the allocated capacity. Charges are calculated in accordance with the applicable Tariff for gas transmission services. The Tariff is based on fixed charges, meaning that charges are applied for the reserved capacity, regardless of the actual level of its utilization (no variable charge applies).

Possession of a transmission ability allocation (PZ) is free of charge. However, the use of PZ may result in balancing settlements in accordance with the TNC.

Yes. One of the main requirements for the conclusion of the transmission contract is the submission of the appropriate license required under applicable law.

If you intend to trade in gaseous fuels, you shall remember to attach to your application a license for trading in gaseous fuels or a license for trading in gaseous fuels with foreign trade (if you plan to import gas into or export gas from the country).

If you are connected to the transmission system as the Distribution System Operator, a license for the distribution of gaseous fuels is required.

You don’t need a license if you only intend to transit a gaseous fuel through the territory of our country, or if you purchase gas only for your own needs. In such cases, instead of a license, you are required to provide a declaration confirming that you are not subject to such a licensing obligation.

You can request two types of allocations: Capacity Allocation (PP) and Transmission Ability Allocation (PZ).

PP is allocated for specific entry or exit points with a specified physical location, including, among others, final consumers, interconnectors, distribution system operators (DSOs), and storage system operator (SSO). Under a PP, you reserve a specific contractual capacity (capacity allocation). PP may be booked for a specified period under an annual, quarterly, monthly, daily, or within-day product. Charges for the capacity reserved under a PP are applied in accordance with the Tariff applicable.

PZ is allocated for virtual entry and exit points of a contractual nature (i.e. without physical location), such as the Gas Exchange, OTC, distribution systems, and storage facilities. A PZ doesn’t relate to a specific ability value and therefore it doesn’t define a contractual capacity. Consequently, PZ is free of charge

First, submit a request in IES to use the daily product. The application does not specify the value of the capacity - this is the key difference from other capacity products. To activate the daily product for a given day, you must submit the appropriate nomination. Based on the approved nomination, capacity will be reserved under the daily product (contractual capacity).  


FINANCIAL SECURITY

Comprehensive information regarding the financial security required on any given gas day under your transmission contract can be found in the Financial Security module of the IES. Your dedicated customer assistant will provide you with instructions on how to gain access to this functionality.

We have also made available a supporting tool, namely a financial security calculator, which can be found on our website. This calculator may be used to estimate the level of financial security required under a transmission contract.

You shall set the required financial security no later than 5 business days before you begin using the transmission service.

You are not required to provide financial security if:

  • your registered office is located in a Member State of the European Union, a member country of the European Free Trade Association (EFTA), or a country that is a party to the Agreement on the European Economic Area (EEA); and
  • you hold an appropriate credit rating:
    • Moody’s: minimum rating Baa2
    • Standard & Poor’s: minimum rating BBB
    • Fitch: minimum rating BBB

More information about financial security requirements can be found on our website.

You may provide financial security in one of the following forms:

  • a cash deposit paid into GAZ-SYSTEM’s bank account,
  • a bank guarantee,
  • surety issued by the parent company within a capital group,
  • a promissory note.

Detailed information on the available forms of financial security and the specific conditions governing their use can be found on our website.

If you wish to withdraw your deposit, please submit a written request signed in accordance with your company's representation rules. In the request, you shall specify the transmission contract number and the bank account number to which the deposit should be refunded.

A reduction of the deposit is possible provided that the following two conditions are met:

  • you have no overdue payments; and
  • the amount of financial security you have provided is higher than the amount required.

The funds will be returned within two weeks from the date a correctly completed request is submitted.


BALANCING

A balancing group is formed by Shippers. Within such a group one Shipper is responsible for the commercial balancing of the entire balancing group (ZUPBG) and at least one Shipper acts as a participant of a balancing group (ZUPUG).

Obligations of ZUPBG:

  1. Commercial balancing of the entire balancing group.
  2. Settlement of balancing charges for all balancing group participants.
  3. Maintaining financial security based on the aggregate imbalance of all balancing group participants.

 

Obligations of a ZUPUG:

  1. Settlement of charges based on the allocated PP.
  2. Maintaining financial security based on the allocated PP.
  3. Settlement of charges related to the financial neutrality of balancing.

If you want to create a balancing group, you should submit an application no later than 14 days before the start of the gas month in which you intend to create the group.

If you would like to join an existing balancing group, submit to us a statement, which should also be signed by the ZUPBG, that you have been accepted into the relevant balancing group. Submit the statement no later than 14 days before the start of the gas month in which you are joining the relevant balance group.

A list of ZUPBG, who have consented to the publication of their company name and address, is available here.


CAPACITY

Capacity allocation for technological start-up (PPR) is a type of capacity allocation granted under special conditions for the use of capacity and subject to a settlement method different from the standard one.

 

A PPR application may be submitted by:

  • a DSO or a shipper, acting in an agreement with a Final consumer, submits a PPR application in the IES,
  • The application specifies the minimum value of the capacity, determined in accordance with the conditions set out in the agreement for connection - PPRmin.
  • the application also specifies the maximum value of the capacity approved by the TSO, taking into account the available system capacity, system integrity, and the safe operation of the transmission network - PPRmax.

 

Settlement of a capacity used during the start-up period:

  • if the maximum capacity utilized during a given month is lower than the PPRmin, the charge is calculated on the basis of PPRmin, using the tariff rate applicable to the annual product.
  • if the maximum capacity utilized during a given month exceeds the PPRmin, but does not exceed  PPRmax, the PPR settlement is based on the maximum capacity utilized during that month, using the tariff rate applicable to the annual product.

 

Duration of PPR

Capacity allocation for technological start-up may be granted for a period of up to six months, counted from the month following the month in which the technological start-up begins.

PP fee rates, correction coefficients for short-term services (quarterly product, monthly product, daily product and within-day product) and discounts, are specified in the Tariff.

You can estimate the costs associated with PP fees using our financial security calculator.