Margins Notices (MN) and Gas Balancing Notifications (GBN)

A GBN is given at our discretion, based on our expectations of the impact of a significant supply/demand event. A GBN will be issued in advance of or during a gas day if a significant supply/demand event is experienced which instigates a material risk to the physical end-of-day balance.

Shippers should seek to balance their portfolio and be prepared to respond accordingly to any balancing action requests from us. If a GBN is issued, the On the Day Commodity Market (OCM) will remain open. In accordance with UNC, if a GBN is issued, we may consider over-the-counter trades. For further information, please read about over-the-counter and multi-day trades.

A GBN withdrawal notice will be issued at the discretion of National Grid NTS once the circumstances leading to its issue have been resolved and there is no longer an actual or imminent risk to the safety of the NTS end of day physical balance.

As operator of the NTS, we can facilitate over-the-counter (OTC) and multi-day trading if a GBN is issued. In line with the Uniform Network Code (UNC), we may seek to enter into non-system transactions with users (as defined in the UNC). We will only enter into non-system transactions:

• when a GBN has been declared for the relevant gas day;

• with gas shippers who are a party to the Uniform Network Code and are not an OCM subscriber;

• up to a maximum duration of seven days from the time the offer is made (i.e. offers made day ahead can only have a six-day duration); and

• after consideration of the system balance and the offers available via the OCM and OTC.

This may mean that actions are not taken immediately following an offer being made. If offers are time-constrained this should be made clear at the time the offer is made using the 'OTC Offer to sell under an NBP Trade (P160)'.

Payments for any accepted OTC offers will be as per the original price and invoiced through an ad-hoc energy balancing invoice (EBI) in EBI invoice timescales.

The terms applicable to any such non-system transactions shall be in accordance with the Short-Term Flat NBP Trading Terms and Conditions Ref. NBP 2015 (NBP 15), amended as follows:

• Clause 6 of NBP 15 shall be deleted and replaced with the words: "The amount payable by National Grid to the Seller in respect of NBP Trades shall be invoiced as Market Balancing Action Charges under the Uniform Network Code and in particular Section S of the Transportation Principal Document."

A summary of the process for making and accepting offers in relation to OTC/OCM multi-day trades is available in the OTC Flowchart document.  A more detailed shipper procedure is available in the ‘Shipper Procedure for Over the Counter Trading’ document.

Multi-day trade offers may also be made using the OCM by subscribers using the locational market. These may also be made up to a maximum duration of seven days from the time the offer is made (i.e. offers made day ahead can only have a six-day duration). The process for single day OCM offers is unaffected by a Gas Balancing Notification.

You can find information about system prices in the ‘Impacts on SAP, SMPB and SMPS of OTC or OCM Multi-day Trades’ document. Multi-day trade weighting factors will be published here if a Gas Balancing Notification is declared.  Here is an example of the specimen.

For more information about the OTC contract, please contact David Preston on 01926 65 4611.

In the event of a GBN, OTC offers should be submitted by fax using the 'OTC Offer to sell under a NBP Trade (P160)' document. The fax number for these submissions is 0870 191 0646. Please note that 0870 numbers will cost 7p per minute plus your phone company’s access charge. If you have any queries, please call 0870 191 0636.

All trade confirmations should be submitted using the proforma for 'Confirming an accepted OTC Offer (NBP15)' document. Once completed and signed, please send it (along with statements, invoices, and queries relating to settlement) to:

Settlement Team
Market Operation
National Grid
Gallows Hill
Warwick
CV34 6DA

Fax number: 01926 656613
Phone number: 01926 654960