ENTSOG Tariff NC - Implementation Document 2nd Edition

Multiple TSOs at either or each side of the border Figure 30 below illustrates the simplest example of multiple TSOs at either/each side of the border between the entry-exit systems: two TSOs at only one side of the border. The example assumes that these two TSOs are within the same entry-exit system, and that each applies the RPM separately  1) with forecasted contracted capacity as an input parameter. In this example, the calculations by each TSO will not suffice for deriving one VIP tariff at the side of the border with two TSOs; an additional calculation is necessary. TSO C and TSO E must calculate an average of the respective values resulting from their fulfilment of the first step. It is suggested that this should be a weighted average, where the weights depend on the key cost driver such as forecasted contracted capacity.

entry-exit system 1

entry-exit system 2

CAP 20

TSO C € 0.6 / MWh

Green IP

TSO D € 1.8 / MWh

CAP 40

TSO E € 1.6 / MWh TSO C € 1.0 / MWh

VIP

CAP 140

CAP 20

Red IP

TSO D € 2.0 / MWh

TSO E € 0.4 / MWh

CAP 60

Figure 30: Illustration of the VIP with two TSOs at one side of the border

 1) For details on approaches for applying RPM(s) in a multi-TSO entry-exit system within a MS, see Chapter II ‘Reference price methodologies’, Section ‘Articles 10 and 11 – multi-TSO arrangements’.

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TAR NC Implementation Document – Second Edition September 2017