Update on Physical Reverse Flow and Implicit Allocation

Project status and tariffs for the remainder of gas year 2018/19

BBL Company (BBLC) wishes to provide an update to the market with regards to the Physical Reverse Flow (PRF) Project, the applicable tariffs and an update on the Implicit Allocation Mechanism for both forward and reverse flow capacity.

Physical Reverse Flow (PRF)

PRF construction works and commissioning activities will take place during the period from 15 May 2019 through 30 June 2019 and will be executed in combination with planned maintenance activities. BBLC aims to be ready for the Reverse Flow operations on July 1st, dependent on the technical realization of the project as well as IT adjustments. At this stage this can not be fully guaranteed. As of next week BBLC will update the market on a regular basis with regards to progress of the programme, and the availability of both forward and reverse flow capacity during and after this period.

BBLC will offer 7GWh/h PRF capacity as firm capacity throughout the whole year. The PRF capacity will be auctioned via the PRISMA platform as well as sold via the Implicit Allocation Mechanism as of 1st July 2019.

BBLC will apply the following Reverse Flow tariffs for the remainder of the gas year 2018/19:

  • A monthly product (July/August/September 2019) will be € 0,22 kWh/h/month (~€ 0,30/MWh)
  • A daily product (July/August/September 2019) will be € 0,00726 kWh/h/day (~€ 0,30/MWh)

A commodity charge of € 0,109/ MWh, which covers fuel gas as well as electricity costs and is charged as used, will apply for those products.

BBLC will announce the Reverse Flow tariffs for the gas year 2019/2020 a month prior to the yearly auction on PRISMA.

Implicit Allocation mechanism (IAM)

As of the 1st of July 2019 BBLC will be offering BBL transport capacity through an Implicit Allocation mechanism (IAM) for Forward and Reverse Flow capacity, as a second capacity allocation mechanism in addition to auctions on PRISMA.

BBLC’s IAM partner will be Cavendish Markets BV with products offered on PleXhub

Shippers who wish to buy transmission capacity through IAM must:

a) Accept the BBL Company General Terms & Conditions
b) Conclude a contractual agreement with Cavendish Markets BV
c) Obtain access to the PleXhub

BBLC plans to offer up to a maximum of 75% of BBLC’s available technical capacity for both forward and reverse flow capacity through Implicit Allocation. Annual, seasonal, quarterly and monthly unbundled capacity products will be made available for a maximum of the next 8 gas years, 8 seasons, 8 quarters and 8 months.  

BBLC capacity products offered via IAM will have the same reserve tariff as products auctioned under CAM on the PRISMA platform. 

At the end of May 2019 BBLC will publish all the necessary information on the BBLC website, which includes the timing of the IAM products. 

Shippers interested in receiving further information about both projects or who wish to be registered as a new BBL shipper can contact BBLC by sending an email to: commercial_operations@gasunie.nl or calling: +31 (0)50 521 2296

For further information or concluding a contractual agreement with Cavendish Markets BV please contact Cavendish Markets by sending an email to: iam@cavendishmarkets.com or calling +44 (0) 207 073 2621.

BBLC will be providing further information on both the PRF project and the Implicit Allocation mechanism at the workshop for shippers that has been arranged for Tuesday 18th June in Amsterdam. The official invitation will soon be sent to our primary contacts.