Balance group model

The balance group model forms the basis of the liberalized Austrian gas market.

The introduction of the balance group model in 2002 and the separation of trading and distribution on the one hand and grid operation on the other were among the fundamental changes in the structure of the Austrian gas industry. In Austria, framework conditions were created that were based on the Scandinavian balance group model.

This model has to fulfil the following basic requirements:

  • Ensuring that actual deliveries to and withdrawals from the grid are balanced
  • Providing imbalance energy to cover the difference between forecast and actual gas withdrawals or deliveries to the grid
  • Establishing a system for the settlement of imbalance energy and similar services

Market players

  • Grid operators – this term refers to the operators of transmission and distribution grids.
  • Market area manager (MVGM) – responsible for balancing the market area. In the market area East, AGGM is responsible for the technical balancing.
  • Balance group (BG) – this refers to the grouping of suppliers and customers into a virtual group within which gas supply and demand are balanced. The balance group representative is the person responsible for the balance group in relation to other market participants.
  • Imbalance settlement responsible - for transactions and pricing for imbalance energy – an institution that calculates imbalance energy based on data provided by grid operators and market participants, determines the price for imbalance energy, and manages the balance groups in the market area in terms of organization and billing. In Austria, imbalance settlement responsibles have been set up for the market area east and for the western market areas. The operator of a imbalance settlement responsible is the balance group coordinator (BGC) or the single clearing entity.

Rules & regulations

Market rules