Tolerance
Article 50
1. Tolerances may only be applied in case network users do not have access: (a) to a short term wholesale gas market that has sufficient liquidity; (b) to gas required to meet short term fluctuations in gas demand or supply; or (c) to sufficient information regarding their inputs and off-takes. 2. Tolerances shall be applied: (a) with regard to network users’ daily imbalance quantity; (b) on a transparent and non-discriminatory basis; (c) only to the extent necessary and for the minimum duration required. 3. The application of tolerances may reduce a network user’s financial exposure to the marginal sell price or the marginal buy price in respect of a part of or the network user’s entire daily imbalance quantity for the gas day. 4. The tolerance level shall be the maximum quantity of gas to be bought or sold by each network user at a weighted average price. If there is a remaining quantity of gas that constitutes each network user’s daily imbalance quantity which exceeds the tolerance level, it shall be sold or bought at marginal sell price or marginal buy price. 5. The design of the tolerance level shall: (a) reflect the transmission network’s flexibility and network user’s needs; (b) reflect the level of risk to the network user in managing the balance of its inputs and off-takes; (c) not undermine the development of the short term wholesale gas market; (d) not result in an unduly excessive increase of the transmission system operator’s balancing actions’ costs. 6. The tolerance level shall be calculated on the basis of each network user’s inputs and off-takes, excluding trades at the virtual trading point, for each gas day. The subcategories shall be defined under the applicable national rules. 7. The tolerance level applicable for a non daily metered off-take defined under the applicable national rules shall be based upon the difference between the relevant forecast of a network user’s non daily metered off-takes and the allocation for non daily metered off-take. 8. The tolerance level may include a component calculated taking into account the application of the deviation of the forecast of a network user’s non daily metered off-takes which is the amount by which the relevant forecast: (a) exceeds the allocation for non daily metered off-take in case the daily imbalance quantity is positive; (b) is less than the allocation for non daily metered off-take in case the daily imbalance quantity is negative.