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The New Entry-exit Model in the EU and Its Consequences for Gas Supply Companies

In: Handbook Utility Management

Author

Listed:
  • Christian Hewicker

    (KEMA Consulting GmbH)

  • Stefanie Kesting

    (KEMA Consulting GmbH)

Abstract

The entry-exit network access model has become standard in European gas transmission networks. It allows shippers to book capacity rights independently at entry and exit points. Compared to the former common distance or pathdependent point-to-point regimes, this model represents a general improvement towards more flexibility for shippers, system transparency and cost-reflective network tariffs. Nevertheless, efficient capacity management remains crucial to the avoidance of contractual congestion that could minimize the flexibility of the entry-exit system. Furthermore, fair balancing rules are necessary to enable entirely non-discriminatory network access. This chapter explains the characteristics, limitations and implications of the entry-exit model.

Suggested Citation

  • Christian Hewicker & Stefanie Kesting, 2008. "The New Entry-exit Model in the EU and Its Consequences for Gas Supply Companies," Springer Books, in: Andreas Bausch & Burkhard Schwenker (ed.), Handbook Utility Management, chapter 28, pages 477-491, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-79349-6_28
    DOI: 10.1007/978-3-540-79349-6_28
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