ENTSOG Tariff NC - Implementation Document 2nd Edition

Determination of the reserve price at a VIP Two approaches can be used to calculate reserve prices for unbundled capacity products offered at a VIP: \\ If the RPM considers the VIP as one network point, then the reference price at the VIP will come from running the model with that RPM, which coincides with the reserve price for the yearly product offered  1) . \\ If the RPM does not take into account the VIP as a network point in the model, then the reference price at the VIP must be obtained by combining the refer- ence prices of each of the physical IPs that constitute the VIP, weighted by the corresponding technical or forecasted capacities as relevant  2) . The reserve price for the yearly product is:

P st, VIP is the reserve price for a given unbundled standard capacity product at the VIP; i is an IP contributing to the VIP; n is the number of IPs contributing to the VIP; P st,i is the reserve price for a given unbundled standard capacity product at IP ‘i’ ; CAP i is technical or forecasted contracted capacity, as relevant, at IP ‘i’.

For the Scenario shown in Figure 25, the tariff for the VIP combining the Red and the Green IP on the side of TSO A is calculated as follows:

If technical capacity is used as an input parameter for the RPM it should also be used for calculating the VIP tariffs. The same applies to the use of forecasted contracted capacity as an input parameter for the RPM and the calculation for the VIP tariffs. In other words, the inputs for VIP tariffs calculation must be consistent with the respective input parameter in the RPM application.

 1) Some examples of such RPM are: postage stamp, CWD and matrix in case all physical IPs are clustered in one cluster.  2) An example of such RPM can be a virtual point based approach.

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TAR NC Implementation Document – Second Edition September 2017