The Baltic Regional Gas Market Coordination Group is composed of:
A brief historic introduction
The first Regional Gas Market Coordination Group (RGMCG) Action Plan began on 2017 with the implementation of the implicit capacity allocation of the interconnection points between Latvia-Lithuania and Estonia-Latvia. It provided the organized market place where gas could be easily traded cross-border, while at the same time minimising the administrative burden of potentially having third party access (TPA) and balancing agreements between TSOs.
In 2018, the tariff model and inter-TSO compensation (ITC) mechanism for the common Baltic-Finnish market was created, resulting in a stepwise integration approach.
The NRAs of Finland, Estonia and Latvia (FinEstLat) agreed to strengthen their cooperation and creating the FinEstLat market, which became operational on 1 January 2020.
The FinEstLat system
The FinEstLat single natural gas transmission entry-exit system, also called the 'FinEstLat system', has specific characteristics.
The NRAs have amended the methodologies for calculating the transmission tariffs and approved the tariff scheme, which became applicable as of 1 January 2020. ACER published its analyses of the consultation documents of the Estonian, Latvian, Lithuanian and Finnish reference price methodologies.
Two balancing areas are set up in the FinEstLat system, considering the different level of market maturity in the FinEstLat countries: the common Estonian-Latvian balancing zone and the Finnish balancing zone.
The Regional Gas Market Coordination Group (RGMCG) continues working on a four-country market model, including Lithuania into the regional market.
Following the Roadmap approved in early 2020: