ENTSOG First Report on Implementation Monitoring and Baseline for Effect Monitoring of the Tariff Network Code

‘DEFINITIONS’

ARTICLE 3

Overview of the Rule

Article 3 lists 26 definitions setting out the meaning of some of the terms used in the TAR NC. The TAR NC incorporates definitions from the Gas Directive, the Gas Regulation, previous network codes and also introduces new definitions. Harmonised definitions contribute to clearer communication and avoids any potential misunderstanding. Although Article 3 is applicable as of AD 1, the definitions will not have to be introduced until the rule of the TARNC the definition is related to, applies. A change is necessary if, for example, at the national level a certain notion is used with a different meaning than attributed to it by the TARNC, or if the meaning of a notion is labelled differently than by the TAR NC. The eight definitions relevant for the Articles that the TSOs need to be compliant with for 2017 are: \\ ‘regulatory period’ \\ ‘tariff period’ \\ ‘non-price cap regime’

\\ ‘price cap regime’ \\ ‘allowed revenue’ \\ ‘transmission tariff’ \\ ‘non-transmission tariff’ \\ ‘auction premium’

Responses

Have the definitions, as set out in Article 3 of the TAR NC and applicable to AD 1 and AD 2, been applied?

9

Yes, 36 (from 18 MSs) No, 9 (from 6 MSs)

36

Figure 22: Introduction of the TAR NC definitions applicable to AD 1 and AD 2

Æ 36 TSOs answered that they are using the relevant definitions and provided links to sample documents where these definitions are in use. However, a small number of TSOs explained that although they have started using some of the definitions, they have not yet introduced them all. The introduction of all definitions will be completed when they change tariff period or when their national law is updated for the TARNC. Æ Just under a quarter of TSOs answered that they have not yet used the definitions as they are awaiting the outcome of: NRA decisions; a derogation application; or the outcome of reviews currently taking place on what they need to do for the implementation of the TARNC.

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