Impact of restrictions on settlement

Impact of technical capacity constraints on capacity allocation and settlement

AS “Conexus Baltic Grid” informs that due to planned or unplanned repair works or in case of any emergency, technical capacity may be restricted at the Kiemenai entry/exit point.

According to paragraph 4.7.6.6. of Common Regulations for the use of Natural Gas Transmission System (the Transmission Rules), interruptible capacity is restricted first, then firm capacity products, starting with shorter term products.

Due to these limitations the booked capacity products have not been available for use in full. Therefore, discounts are applied for booked capacity products according to the following principles:

• The discount is applied up to the extent of restrictions if the allocation does not exceed the restricted capacity.
• No discount is applied if the allocation exceeds the restricted capacity.

          These situations may arise if one of the system users does not fully nominate the restricted capacity, while another                system user nominates capacity products above the restrictions of specified capacity product.

• For surrendered capacity a discount is applied based on the conditions specified in paragraph No 5.5.13. of the Transmission Rules.

           The discount of booked capacity fee is applied to the extent that the surrendered quantity of capacity is resold –                      either in full or partly.

            If there is a technical capacity limitation, the system user who has returned the booked capacity to the system                        operator shall receive the full discount on the surrendered capacity.