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

4.3.5 TAR.5: MULTIPLIERS APPLIED BY TSOs

Goal of TAR.5 (Multipliers)

This indicator covers the multipliers currently applied by TSOs for each non-yearly standard capacity product. It provides information on quarterly, monthly, daily and within-day standard capacity products. The objective of TAR.5 is to give transparency on multipliers applied to short-term products at IPs only. The TARNC implementation may have an impact on the level of multipliers after 2019, when all Chapters in the TARNC are implemented. The topic of multipliers is mostly addressed in Chapter III ‘Reserve prices’, Chapter VII ‘Consultation requirements’ and Chapter VIII ‘Publication requirements’ of the TARNC, whose application dates are 31 May 2019 for Chapter III, 6 April 2017 for Chapter VII, and 1 October 2017 for Chapter VIII. Art. 13 of the TARNC sets out that the level of multipliers for quarterly and monthly standard capacity products must be between 1 and 1.5 both included, and that it must be between 1 and 3 both included for daily and within-day standard capacity products (unless ‘duly justified cases’ apply)   22) . However, this Article only applies as from 31 May 2019, and the present EM report only focuses on the baseline situation for TSOs, before the full implementation of the TARNC.

Assumption for TAR.5 (Multipliers)

TAR.5 considers a range of values for multipliers used by each TSO

This indicator focuses on the minimum, maximum and average values of multipliers to cover the case where, for a given capacity product, specific IPs benefit from specific multipliers, as allowed by Art. 12.1 of the TAR NC. For each capacity product, average levels have been calculated by the TSO before sending its data to ENTSOG. However, for other TSOs multipliers will be the same for a given type of capacity product at all IPs (e. g. 1.5 for all quarterly products at all IPs). TAR.5 considers the current multipliers and identifies outliers. The figures used for TAR.5 show the current values of multipliers for TSOs which are not considered as outliers   23) .

TAR.5 takes specific provisions regarding within-day multipliers.

For within-day capacity purposes, some TSOs currently market daily products. The TAR NC sets out that only within-day products for these purposes, based on their hourly duration, are allowed. However, it is not currently prohibited to price within-day capacity as daily products, since provisions on within-day tariffs are part of Chapter III of the TAR NC, whose application date is on 31 May 2019. TSOs with daily products sold for within-day use have been taken out of TAR.5 analysis since they are not fully comparable with the other TSOs.

 22) Article 13(1)(b) of the TAR NC sets out that: ‘In duly justified cases, the level of the respective multipliers may be less than 1, but higher than 0, or higher than 3.’  23) Cf. the ‘Results’ section for more details on the application of this assumption.

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