Decision of the President of the Energy Regulatory Office (ERO) approving the incremental capacity project proposal for the border between Poland’s and Ukraine’s bidding zones
The decision constitutes the basis for an incremental capacity auction at the GAZ-SYSTEM/UA TSO GCP interconnection point. The auction will be held on 1 July 2024 on the GSA Platform.
The President of ERO decided that the project proposal submitted by GAZ-SYSTEM met all the substantive requirements under Article 28(1) of CAM NC for the approval of the incremental capacity.
The auction will be held on 1 July 2024 on the GSA Platform. Registration with both network operators on the GSA Platform and acceptance of General Terms and Conditions for the incremental project of both TSOs is required to participate in the auction.
The binding offer level of 3,095,890 kWh/h will be offered by GAZ-SYSTEM and Gas Transmission System Operator of Ukraine (GTSOU) to the market in a yearly capacity auction from the gas year 2030/2031 over the period of 15 years.
For the incremental capacity in direction from Poland to Ukraine offered by GAZ-SYSTEM, the President of ERO approved the reference price at the level of 3.214 PLN/(MWh/h)/h, i.e. at the level of the fixed fee for the provision of gas transmission services at the exit point, in force from 1 January 2024 to 1 January 2025, in accordance with “The Tariff No. 17 for Gaseous Fuels Transmission - rev. No. 1”.
The project that had been submitted for approval was the response to the non-binding market demand indications for incremental capacity at the GCP GAZ-SYSTEM/UA TSO interconnection point received by GAZ-SYSTEM and GTSOU LLC during the 2023 non-binding market demand assessment for incremental capacity between transmission systems of Poland and Ukraine conducted according to Regulation (EU) 2017/459 (CAM NC).
Following the operators' technical and economic analyses as well as market consultations of the draft project proposal, on 8 January 2024, pursuant to Article 28(1) of CAM NC, GAZ-SYSTEM submitted to the President of ERO the application for the approval of the incremental capacity project proposal for the border between Poland’s and Ukraine’s bidding zones.
In order to obtain coordinated decisions from the National Regulatory Authorities approving the joint incremental capacity project proposal, GTSOU submitted an equivalent application to the National Energy and Utilities Regulatory Commission (NEURC).
More information is available at Incremental Procedure tab.
Pertinent documents for download:
Pursuant to Article 25(2) and Article 28(3) of Regulation (EU) 2017/459 (CAM NC), publication concerning the incremental capacity procedure for the border of the bidding zones of Poland and Ukraine initiated in 2023 – project information
General terms and conditions for participation in and access to capacity allocation in the binding phase of incremental capacity auction (GAZ-SYSTEM)
General Terms and Conditions to which network users shall agree in order to obtain access to capacity in the binding phase of capacity allocation of the incremental capacity procedure on the border between Ukraine’s and Poland’s (GTSOU) bidding zones
Decision of the President of the Energy Regulatory Office Ref. No.: DRR.WRG.745.1.2024.MJS of 26 April 2024