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

Example

One TSO has 3 points to consider for TAR.2: points A, B and C. Since the last tariff period (January 2016–December 2016), tariffs have evolved in the January to December 2017 prevailing tariff period at the time of the survey (Q4 2017). Evolution for capacity tariffs is assumed to be: +5% for A, −3% for B and +7% for C. Evolution for commodity tariffs is +3% for A, 0% for B and 0% for C. The range of tariff changes is therefore between −3% and 7%, with an average evolution of +2% (by summing up all percentage changes and dividing by 6, i. e. number of points multiplied by number of applicable capacity-based or commodity- based tariff).

Interpretation of TAR.2

The TAR.2 indicator should be used to assess future tariff evolutions for each TSO. It is not intended to draw comparisons between TSOs, because tariff evolutions depend on TSO-specific justifications which may be related to changes in the allowed revenue or changes in booking behaviour at the TSO level.

4.3.3 TAR.3: EVOLUTION OF SHORT-TERM AND LONG-TERM BOOKINGS

Goal of TAR.3 (Bookings)

This indicator aims to check the possible changes in the way network users book capacities after the TAR NC implementation. The objective is to consider if the TAR NC contributes to the increase in the share of short-term bookings in total bookings. The underlying idea is that the provisions of the TARNC about short-term multipliers may play as incentives for booking behaviour  21) . The main goal of TAR.3 is to check whether the TARNC plays a role on booking be- haviour, in terms of a possible trend away from long-term bookings. The TAR NC may be a reason for such evolution, along with other causes such as the existence of unused capacity in non-congested networks. Any conclusion should be drawn with respect to the possibility of other factors.

Assumptions for TAR.3 (Bookings)

TAR.3 considers CAM-based firm and interruptible capacity products

This indicator looks at yearly, quarterly, monthly, daily and within-day capacity products. Firm products are considered as a requirement, while interruptible products are only optional . It will be indicated where TSOs also give data for interruptible products.

 21) Relevant information on this subject in the TAR NC is in Chapter III ‘Reserve prices’, which will apply as from 31 May 2019.

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