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

ARTICLE 21 ‘PRICING OF BUNDLED CAPACITY’

Overview of the Rule

The revenue from the bundled reserve price must be split between the two respective TSOs in proportion of the reserve prices for the capacities contributing to the bun- dle. As from AD 1, the TSO may need to negotiate and agree on the attribution of the auction premium from the sales of bundled capacity. The TSO has three options: (1) current arrangements with the respective TSO will stay in place, as per the CAMNC; (2) planning to change the current arrangements (the TARNC sets no exact dead- line for entering a new agreement, but the NRA will need to approve the agreement three months in advance of the yearly capacity auction, which corresponds to early April from 2018 on); (3) allow the default position to prevail – the auction premium shall be attributed to the respective TSOs equally. Current arrangements, option 1, can be the same as the default position, option 3, as explained in the ‘Responses’ below.

Responses

What is the plan for the attribution of the auction premium from the sale of bundled capacity?

2 1

11

Current arrangements with the respective TSO will stay in place, 31 (from 14 MSs) Allow the default position to prevail, 11 (from 10 MSs)

31

Non-applicable, 2 (from 2 MSs) Planning to change the current arrangements, 1 (from 1 MS)

Figure 23: Plan for the attribution of the auction premium from the sale of bundled capacity

Æ 31 TSOs will keep the current arrangements with the respective TSO in place and for 11 TSOs the default position will prevail (the auction premium shall be attributed to the respective TSOs equally). For a number of the TSOs that indicated that they will keep the current arrangements in place – their current arrangements are the same as the default position. Some TSOs who will not ‘change their current arrangements’, also indicated that if they consider it necessary to do so, they might change their arrangements in the future. Æ One TSO, who currently operates on the default position, indicated that they are planning to change the current arrangements with the respective TSOs, this will be discussed and reviewed with the adjacent TSOs in 2018. Æ This Article is non-applicable for one TSO as it does not have an IP and another TSO does not have an IP where auctions are organised.

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TAR NC Implementation and Effect Monitoring Report 2017