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Another meeting of Polish and Lithuanian regulators

On 17 August, 2021 the remote meeting took place between the representatives of the Polish Energy Regulatory Office (URE) and the National Energy Regulatory Council (NERC). The two parties discussed the latest developments in gas and electricity markets in both countries. The meeting was also an opportunity to discuss the possibilities of further cooperation after the completion of the Gas Interconnection Poland-Lithuania (GIPL) in 2022.

The meeting was held within the bilateral cooperation that started back in October 2019 when the representatives of Polish authority visited the NERC premises.

Common goals on the gas market: GIPL and LNG terminals

Lithuanian and Polish energy regulatory authorities presented the latest developments in gas markets touching in particular the updates in the natural gas transmission tariffs methodologies and grid development. The representatives of the meeting attached high importance to the major developments related with the construction of new interconnectors and internal gas grid reinforcement that will impact on the changes in flow patterns.

The meeting was an occasion to discuss the cooperation opportunities once the gas interconnection Poland – Lithuania (GIPL) is commissioned in 2022. The discussion focused around the ways to achieve the common goals – efficient use of the gas interconnector GIPL and LNG terminals in both countries with the aim to ensure the highest benefits to consumers. As a step by step approach it was agreed first to start the discussions on the application of the discounts at the entry point from and exit point to GIPL. To this end the energy regulatory authorities the URE and the NERC agreed to prepare a joint letter addressed to the countries’ transmission system operators (TSOs) with the aim to invite TSOs to initiate bilateral discussions and prepare joint proposals on the tariffication of GIPL, that will support the full use of GIPL capacity.

Future cooperation among the energy regulatory authorities of Poland and Lithuania could focus on the next steps discussed that could include common gas tariff zone creation, implementation of common LNG capacity allocation market, merger of gas exchanges, further harmonisation of the regulatory framework rules.

Bilateral talks on the electricity market issues

The second part of the meeting was devoted to the recent updates on electricity issues: the analysis of the price difference between the Latvian and Lithuanian electricity price zones was discussed by the NERC representatives including the information on the planned future steps related with the ongoing public consultation announced by the NERC regarding the Methodology on cross-zonal capacity calculation and allocation with third countries that was prepared by the electricity transmission system operator LITGRID AB.

It was agreed to continue the bilateral cooperation focused on the future developments in both, Polish and Lithuanian energy markets.

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  • The implementation of the Poland-Lithuania gas cross-border interconnection aims at connecting the natural gas transmission systems of both Operators, and consequently the other Baltic States, with the European gas network.
  • This interconnection is in line with the main objectives of the European Union's energy policy (priority infrastructure project under the Baltic Energy Market Interconnection Plan for Gas – BEMIP) and is intended to solve problems related to security of gas supply and end the isolation of the Baltic States from the EU gas market.
  • OGP Gaz-System (polish gas TSO) and AB Amber Grid (gas system operator in Lithuania) are responsible for the realisation of the project.
  • The length of the gas pipeline in Poland will be 343 km, while in the Lithuania - 52 km.
  • At the end of 2020, Gaz-System and AB Amber Grid (TSOs) conducted the Non-Binding Market Survey responses concerning the Gas Interconnection Poland – Lithuania (GIPL).

 

19.08.2021

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