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

4.5 Conclusion

EFFECT MONITORING

In terms of the 5 EM indicators used in this EM report 2017, the following conclusions can be drawn:

\\ TAR.1 (under-/over-recovery): the evolution is mixed in terms of revenue recovery, with most TSOs reporting mixed results as regards the level and the variability of the regulatory account balance since 2013. However, these results correspond to early years and stem from a limited number of TSOs participating in this indicator. Data to be collected in future years will be useful to verify the impact of the TARNC on revenue recovery. \\ TAR.2 (tariff changes): the pattern followed in Europe shows a moderate increase in tariffs across all TSOs between the last 2 tariff periods, with some special cases due to radical changes in capacity-based and commodity-based tariffs. Longer time series will be necessary to check which effect the TARNC will have on tariff changes. \\ TAR.3 (bookings): for most TSOs taking part in this EM report, the share of yearly capacity products remains dominant in recent years. Nonetheless, between gas years 2014–15 and 2015–16 a slight shift towards short-term products was observed in many TSOs and it is especially beneficial to daily products. This trend will have to be checked in future EM reports. \\ TAR.4 (publication in English): across the 5 sub-indicators used for TAR.4, it appears that the availability of English translations will mainly depend on the decision of NRAs as regards the periodic consulation and the consultation on some discounts, multipliers and seasonal factors. More than one third of TSOs highlighted that an English version would be available for the yearly auctions, and more than a half of TSOs stated that an English version would be available for the tariff periods. \\ TAR.5 (multipliers): considering all types of short-term products, most TSOs already comply with the ranges of multipliers which are defined in the TARNC. A few TSOs currently use multipliers which are sometimes significantly out of the ranges. For the tariff period following AD3 of the TARNC, they will have to adjust to these ranges (for quarterly and monthly multipliers), or they will have to provide a due justification for this level (for daily and within-day multipliers).

These baseline results paint a picture of the situation of European TSOs at the start of the implementation of the TARNC.

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TAR NC Implementation and Effect Monitoring Report 2017