Offer Announcement on Using “Express Services” for Storage Year 2019/2020 (and 2020/2021)

Conditions of Use:

Any system user (“System User”) that is exclusively subject to Act No. XL of 2008 on natural gas supply (Gas Act) and the related Government Decree No. 19/2009 (I.30.) on the implementation of Act No. XL. of 2008 on natural gas supply (Implementation Decree), and under the contract with MFGT has a storage capacity booking (including: injection capacity – working gas capacity – withdrawal capacity, hereinafter Capacity Booking) for storage year 2019/2020 or storage years 2019/2020 and 2020/2021 on the day of this announcement or during the storage year 2019/2020, shall be entitled for each 1 000 000 kWh working gas capacity booking, upon the payment of the budget limit fee and up to the budget limit to use the services specified in the chapter: “Express Services” to be used against the Budget Limit, with fees”, in the period between 1 April 2019 and 31 March 2020 or 1 April 2019 and 31 March 2021.

“Express Services” can be used:

 

• in the storage year 2019/2020 by System Users with Capacity Booking for storage year 2019/20, but not yet for further storage years

 

• in the storage years 2019/2020, 2020/21 by System Users with Capacity Booking for storage years 2019/20 and 2020/21 both. 

Determining the Budget Limit

Method for calculating one “Budget Limit” unit generated by 1 000 000 kWh working gas capacity booking:

0.1266 HUF/kWh/storage year*1 000 000 kWh

Fee for one “Budget Limit” unit: for each 1 000 000 kWh working gas capacity booking:

126 600 HUF + VAT /storage year, that is one hundred twenty-six thousand six hundred forints + VAT /storage year

System Users having a Capacity Booking according to the above are entitled to declare until the end of the 21^st day following either this announcement or a later Capacity Booking:

 

• whether they intend to use/pay the full budget limit calculated as specified above,

(System Users are not entitled to use/pay part of the budget limit.)

 

• whether they intend to use the Express Service with regard to 1 or 1+1 storage year(s) (1 storage year: period between 1 April 2019 - 31 March 2020, 1+1 storage years: period between 1 April 2019 - 31 March 2021)

 

• the “Only Working Gas” capacity booking quantity (kWh) as per Section 1 of the chapter: “Express Services” to be used against the Budget Limit, with fees”.

Payment schedule

The budget limit fee must be paid per storage year in advance and in one instalment.

Upon the conclusion of the “Express Service Bundle” contract, MFGT issues a periodic settlement invoice for the period until the end of the storage period between 1 April 2019 - 31 March 2020. The entry into force of the contract is subject to the condition that the invoiced amount is paid in full.

In the event that an “Express Service Bundle” contract for 1+1 storage years is concluded, the payment deadline of the periodic settlement invoice issued with regard to the +1 year (the period between 1 April 2020 - 31 March 2021) shall be 1 April 2020.

Throughout the duration of the contract, MFGT issues accounting documents on the actual monthly service use, thus specifying the already spent and the still available budget limit.

In case of using Daily Peak Plus, Storage Plus and Intra Gas Day Storage Flexibility services, the consideration for such services shall be deducted from the System User’s Budget Limit until it is spent in full.

“Take or pay” (TOP) Obligation

In relation to the budget limit of the “Express Service” bundle, System User has a 50% “Take or Pay” (TOP) obligation on the last day of the storage year. By the end of the storage year, any amount remaining from the Budget Limit shall be settled as “Take or Pay” (TOP) obligation, therefore the unspent part of the 50% cannot be shifted to the subsequent storage year, and will not be refunded by MFGT.

Maximum 50% of the fee paid as budget limit, that is the relating Budget Limit can be transferred (shifted) to the subsequent storage year, and spent on using the services then required at the then applicable prices (e.g.: set off against monthly capacity fees).

The amount remaining from the Budget Limit shift shall be settled as a “Take or Pay” (TOP) obligation at the end of the second (in case of contracting for 1 storage year) / third (in case of contracting for 1+1 storage years) storage year, which cannot be shifted to further storage years and will not be refunded by MFGT. (Maximum 50% of the Budget Limit relating to storage year 2019/2020 cannot be shifted to storage year 2021/2022.)

MFGT will not commit itself to offer Express Services other than via this offer announcement following the storage year 2019/2020.

Any other conditions relating to Express Services are contained in the relating template contract.

“Express Services” to be used against the Budget Limit, with fees

*indexation as per contract.

The detailed specification, the availability and the conditions of use of Daily Peak Plus, Storage Plus and Intra Gas Day Storage Flexibility services are contained in MFGT’s Code of Business Conduct and Fee List.

Miscellaneous Provisions

MFGT suspends the sale of its storage capacities until the expiry of the 21-day deadline herein specified (that is until 18 April 2019) – up to the extent of the theoretical maximum capacity amount offered to System Users with booking, under the scope of this announcement.

References

Code of Business Conduct

http://www.mfgt.hu/hu-HU/Ugyfelek/Szabalyozas-es-eljarasok/Uzletszabalyzat

Fee List:

http://www.mfgt.hu/Ugyfelek/Dijakespotdijak

Annex No. 1: Express Contract Template for 1 Storage Year

Annex No. 2: Express Contract Template for 2 Storage Years