Information: Consequences of Brexit for BGRs

Dear Sir or Madam,

As we have learned through media channels, the negotiations over the United Kingdom’s secession from the EU are currently indicating a “Hard” Brexit in 2019. Under these circumstances we wish to inform you in your role as balance group representative (BGR) about the legal consequences in Austria that would result from a Brexit in the absence of a special agreement.

Parties acting in the capacity of BGR in Austria must have their principal residence or be established in Austria, another EU member state or an EEA signatory state, as required by section 90 para. 3 of the Natural Gas Act (GWG). This condition will no longer be met if the United Kingdom leaves the European Union without a special agreement.

The Austrian regulatory authority E-Control accordingly announced its intention of revoking authorisation, as stated in a letter published on 5 October 2018 (see attachment). You would then no longer be allowed to be active in the capacity of BGR for the Austrian gas market.

In our role as Market Area Manager we therefore recommend to you and all other BGRs not established in an EU member state or EEA signatory state to make use of one of the following options, in order to ensure your continued ability to manage your portfolio in the Austrian gas market. We recommend that you either join the existing balancing group of one of the companies listed here or establish at the earliest date a company having its main headquarters in an EU member state or EEA signatory state. If you choose to establish a new company, we ask you to get in touch with us to register the entity. Consult the Market Area Manager for general information on registration.

We will be pleased to respond to any questions you might have.

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