Incentive Component

The balancing regime contains an incentive component which will give shippers the incentive to use their own (commercial) means to balance their portfolio instead of relying on the Bid Price Ladder to balance the system. The incentive component will be added to the marginal price for which GTS has bought gas from the BPL. The incentive component will be deducted from the marginal price for which GTS has sold gas to the BPL.

The condition to raise the incentive component is the duration of use of the Bid Price Ladder of more than 4 hours during one day of the previous 7 days.
The duration of the Bid Price Ladder is defined as the quotient of the volume bought/sold by GTS on the Bid Price Ladder during a day and the minimum hourly amount of production/injection capacity on that day on the Bid Price Ladder.

An example: If during a day 10.500 MWh is bought on the Bid Price Ladder and for the same day the minimum production capacity was 2.100 MWh/h then the duration was 5 hours. This exceeds 4 hours and therefore the incentive component for the next calendar week will be increased with 1 €/MWh.
If during a calendar week the duration is 4 hours or less for all 7 days (both for volumes bought and sold) then the incentive component for the next calendar week will be decreased with 1 €/MWh. The maximum amount of the incentive component is 10 €/MWh. The minimum amount for the incentive component is 0 €/MWh.

The incentive component is determined each week on Wednesday based or the realization of the last seven days. The outcome will be published the same day on the GTS website one day before the incentive component is increased or decreased and will be applicable from Thursday untill and including Wednesday . In the file below all information that is used to determine the incentive component can per retrieved per calendar week. The publication period of the information in the file is one quarter.