ENTSOG Tariff NC - Implementation Document 2nd Edition

Figure 26 shows the components of the reserve price for a bundled standard capacity product. The reserve price is equal to the sum of the reserve prices for the capacities contributing to the bundle. The constituent reserve prices do not neces- sarily need to be identical.

Bundled reserve price for IP N

Reserve price for TSO 1

Reserve price for TSO 2

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Figure 26: Components of bundled reserve price

Split of revenue from bundled capacity sales Figure 27 shows that the revenue originating from the sale of a bundled capacity product is the sum of its bundled reserve price plus the possible auction premium.

Revenue originating from bundled capacity product sales for IP N

Bundled reserve price for IP N

Auction premium for IP N

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Figure 27: Revenue from bundled capacity sales

The revenue from the bundled reserve price must be split in proportion of the reserve prices for the capacities contributing to the bundle. Each TSO will receive the revenue from the reserve price for the capacity that each TSO contributes to the bundle. Any auction premium must be attributed to the contributing TSOs according to their agreement subject to the approval of NRA(s). The approval must be granted no later than three months before the start of the annual yearly capacity auctions. A default rule exists for the split of the auction premium from bundled capacity sales, to avoid invoicing problems that could arise if auctions occur in the absence of approved agreements. In such cases TSOs must split the auction premiums equally. In summary, each TSO contributing to bundled capacity receives the revenue: (1) from the bundled reserve price proportionally to the reserve price of its contrib- uting capacity; and (2) a portion of any auction premium as agreed with the other TSO and approved by the NRA. In the absence of the approval of NRA(s), the portion is 50%.

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TAR NC Implementation Document – Second Edition September 2017