The Energy Regulation and Markets Review - Stikeman Elliott

Austria
and supply deals can be settled correctly. Therefore, Austria decided to implement the
‘balance group model’ as it was previously used in the Scandinavian states. The balance
group is a virtual group of suppliers and customers within which electric energy procured
and supplied is balanced. Electricity suppliers or traders may decide whether to join an
existing balance group or to start with their own. The whole system is described in detail
in the market rules for the electricity sector (see Section IV.ii, infra).
The natural gas market also uses the aforementioned balance group model.
ii Energy market rules and regulation
In the electricity market three groups of market rules exist:
a GTCs;
b the Electricity Market Code;
c technical and organisational rules (‘TORs’) for system operators and users.
These rules are drawn up and published by the regulatory authority E-Control in
consultation with the relevant market players. They cover, in particular, the following issues:
a the allocation of responsibilities to given market players and system operators;
b the general terms and conditions of distribution and transmission system
operators, balancing group representatives, green electricity balancing group
representatives, and clearing and settlement agents;
c standardisation of the liability rules;
d supplier switching procedures;
e TORs;
f standards for hardware, software and data management (who gets what data and
when);
The market rules in the gas market are established similarly to the electricity market rules
and address, inter alia, the following issues:
a the allocation of responsibilities to given market players and system operators;
b GTCs for individual market participants;
c TORs; and
d the interactions of market players, and schedules and data formats (other market
rules).
Agreements between the different participants on the electricity and natural gas markets
must be based on these market rules. Regarding the market model regarding gas trading
see Section IV.iv, infra).
iii Contracts for sale of energy
Individual contracts for the sale of electricity and natural gas are permitted in Austria. In
contrast with the charges for grid use, energy tariffs are not regulated.
However, in addition to the obligation to comply with the market rules presented
in Section IV.ii, supra, the Electricity Acts of the federal states provide for specific rights
for electricity end customers. Suppliers are obliged to inform the customer before the
closing of an agreement about the essential contents and to distribute an information
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