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

‘CALCULATION OF PAYABLE PRICE AT INTERCONNECTION POINTS’

ARTICLE 24

Overview of the Rule

For payable price, there are two approaches the TSO can take, fixed or floating. Under the floating payable price, where capacity is bought for a gas year beyond the next, the reserve price is not known to network users. The reserve price will only be known before the annual yearly auction that takes place prior to the respective gas year. Under the fixed payable price approach, the basis and the evolution of the price is known to network users prior to the annual yearly capacity auctions. That is, the reserve price is known to network users, as is the type of index, even if the actual index value remains uncertain. When collecting information for this report ENTSOG asked the TSOs if they have any plans to change their current arrangements related to offering floating and fixed payable price. Whether they plan on changing the current arrangements, or not, they do not have to decide, or put arrangements in place, until the annual yearly capacity auctions in 2018 for the first time. Even so, this information gives us an overview of what the TSOs are currently planning in this regard.

Responses

Are there plans to change the current arrangements related to offering floating and fixed payable price?

11

Yes, 1 (from 1 MS) No, 44 (from 22 MSs) Non-applicable, 1 (from 1 MS)

44

Figure 24: Plan to change the arrangements when offering floating and fixed payable price

Æ One TSO changed from fixed to floating payable price at IPs, in 2017, and it is currently proposed that they move from fixed to floating payable price at all points in 2019. Æ The majority of TSOs said that they currently have no plans to change their payable price, however, this does not mean they will not change their current arrangements for the annual capacity auctions in 2018, or beyond. Æ For one TSO, this question is non-applicable as they do not have an IP and do not apply the limited scope rules at ‘other points’. For a full list of the payable price arrangements per TSO, please see Annex D.

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