TSOs intend to launch single German market area in October 2021
The joint, nationwide market area to be established in Germany will presumably start operations on 1 October 2021. This is the date the German gas transmission system operators (TSOs) have agreed with the Federal Network Agency (Bundesnetzagentur), the national regulatory authority. The TSOs believe that the planned timing, which coincides with the start of the gas year, is the most convenient solution for market participants from an operational perspective.
The TSOs have been working intensively with the current market area managers to define the extensive processes associated with the market merger. In the months ahead the TSOs also plan to engage with market participants on a regular basis via a market dialogue process to be conducted in cooperation with the Federal Network Agency to keep the market up to date on the identified steps necessary to establish a nationwide market area for gas.
About the market merger
As shareholders of the future joint entity that is to manage the single German market area, the TSOs are working to ensure that the transition is made as smoothly as possible, especially with a view to upholding the security of the gas supply and with regard to the efficiency of all gas trading processes.
The two existing market areas GASPOOL and NetConnect Germany have developed dynamically over the past years. Today they provide two of the most liquid trading hubs for natural gas in Europe, which is reflected in the trading activities at the respective virtual trading points (VTP), steadily growing trading volumes and increasing churn rates. The merger project now under way has its background in legislative amendments to the German Gas Third-Party Access Regulations (Gasnetzzugangsverordnung) adopted in 2017, according to which the two market areas are to be consolidated into a single entry/exit zone by 1 April 2022 at the latest.
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