What is the gas storage?  

Gas storage refers to a spectrum of different facilities where natural gas can be stored for later consumption. Most gas storage facilities in Europe are underground in salt caverns, depleted gas fields or aquifers.

Gas storage plays an important role in balancing supply and demand in Europe and ensuring security of supply. Demand for gas is subject to significant variations (e.g. seasonal). This variable demand pattern requires flexible gas supplies capable of varying flows. Gas storage allows market participants to inject gas from the transmission system to the storage facility at times of low prices/demand and withdraw gas from the storage facility at times of high prices/demand. Gas storage competes with other flexible sources of supply, such as Liquefied Natural Gas (LNG) and interconnection, to provide this flexibility to the market.

What does the report propose for gas storage?

This document considers the role of storage both in efficient market functioning and in security of supply situations. It proposes a set of regulatory and policy options to ensure that storage can compete on a level playing field with other flexible sources of supply. It also proposes that well-functioning markets are best placed to value and deliver security of supply. In developed markets, security of supply is delivered through wholesale market price signals and security of supply interventions are not necessary. Where markets are not functioning efficiently, however, interventions may be necessary in order to deliver security of supply.

How does it work?

The purpose of this consultation is to seek stakeholders’ views on CEER’s vision on the regulatory arrangements for the gas storage market. Stakholders are invited to respond to a number of specific questions or to provide general comments. The document in its final version may be used as an input to further policy and regulatory work by the European Commission, Member States or the Agency for the Cooperation of Energy Regulators (ACER) in the field of underground gas storage. 

Why is this important for energy customers? What is the impact on energy customers?  

CEER believes that functioning wholesale markets can deliver the best outcomes for customers. By setting out a vision for the regulatory arrangements for the gas storage market, CEER aims to ensure that gas storage can continue to play an important role for customers in the most efficient way by competing with other sources of supply and by helping to deliver appropriate levels of security of supply.

What is the gas storage?  

Gas storage refers to a spectrum of different facilities where natural gas can be stored for later consumption. Most gas storage facilities in Europe are underground in salt caverns, depleted gas fields or aquifers.

Gas storage plays an important role in balancing supply and demand in Europe and ensuring security of supply. Demand for gas is subject to significant variations (e.g. seasonal). This variable demand pattern requires flexible gas supplies capable of varying flows. Gas storage allows market participants to inject gas from the transmission system to the storage facility at times of low prices/demand and withdraw gas from the storage facility at times of high prices/demand. Gas storage competes with other flexible sources of supply, such as Liquefied Natural Gas (LNG) and interconnection, to provide this flexibility to the market.

What does the report propose for gas storage?

This document considers the role of storage both in efficient market functioning and in security of supply situations. It proposes a set of regulatory and policy options to ensure that storage can compete on a level playing field with other flexible sources of supply. It also proposes that well-functioning markets are best placed to value and deliver security of supply. In developed markets, security of supply is delivered through wholesale market price signals and security of supply interventions are not necessary. Where markets are not functioning efficiently, however, interventions may be necessary in order to deliver security of supply.

How does it work?

This paper sets out final Council of European Energy Regulator’s (CEER’s) Vision on the Rregulatory Aarrangements for the Gas Storage Market (Ref: C15-GWG-119-03).

Why is this important for energy customers? What is the impact on energy customers?  

CEER believes that functioning wholesale markets can deliver the best outcomes for customers. By setting out a vision for the regulatory arrangements for the gas storage market, CEER aims to ensure that gas storage can continue to play an important role for customers in the most efficient way by competing with other sources of supply and by helping to deliver appropriate levels of security of supply.