In 2015, the EU Commission Regulation established a network code on interoperability and data exchange rules, defining AS4 (Applicability Statement 4) as the protocol for document-based data exchange. AS4 provides added security and efficiency to Edig@s messages, which have become the most common standard for the electronic exchange of data on European gas markets in recent years. The protocol keeps growing and now another player has made the switch - choosing Navitasoft to support them throughout the changeover.
Companies that switch to automated communications processes see their operations become much more efficient and less prone to human error. In addition, automation enables the secure realization of their trading strategy. Natural gas traders operating in the Baltic region and in Finland have been using AS4 for years, and now Germany is also moving towards implementing it in the market communication in its electricity sector. By the spring of 2024, all market participants in Germany must have completed the migration to the protocol.
And while it’s often said that Austria tends to follow the examples set by its neighbor, this time it’s leading the way: at the end of May, the Austrian gas settlement sector started to use AS4 in their data exchange. The switch was seamless, which is a remarkable achievement even if we consider that changing to newer versions of the protocol is easier than in Germany, since participants can configure the version of the standard they wish to support (and reject any outdated ones).
In layman’s terms, we could say that those players that use AS4 speak the same language, which makes their overall operations much easier. Onboarding is simpler thanks to immediate integration, and roll-outs can happen at the same time across the board, which both reduces costs and minimizes risks. Standardization is key, and according to EDA, the project that provides services for Austrian TSOs and DSOs for both gas and electricity, standards need to cover communication protocols, data formats and business processes.
As mentioned above, gas trading automation based on AS4 is on the rise in EU markets, and we at Navitasoft are proud to be supporting it in eight countries, with Austria being one of them. And, thanks to our partnership with smart technologies GmbH, on October 1 our AS4-CS solution went live at Vienna-based AGCS Gas Clearing and Settlement AG, one of the two balancing group coordinators that operate in the country. Acting as a counterparty between market participants, these coordinators are companies that determine and settle balancing energy, and organize a competitive balancing energy market. Responsible for Eastern Austria - all of the federal provinces except Vorarlberg and Tyrol - AGCS will be using our ENTSOG conforming data exchange tool, AS4-CS, which is listed in the European Commission’s “Market Guide for AS4 Solutions and Services.”
We look forward to a successful cooperation with AGCS and to the continued growth of the AS4 protocol in European energy markets.
