ENTSOG Tariff NC - Implementation Document 2nd Edition

Clearing Price

WHAT A CLEARING PRICE IS

ARTICLE 23

Responsibility: no implications for TSO/NRA responsibility

A clearing price is the price resulting from the auction. The two components that make up the clearing price are the reserve price and, if any, the auction premium. A clearing price may diverge from the payable price for the following reasons related to the reserve price used in the auction: \\ Where the TSO does not have a tariff period that matches the gas year, the reserve price will only reflect the first part of the gas year depending on the applied tariff period. The reserve price will change part way through the gas year. \\ For fixed tariffs beyond the gas year following the auction, the reserve price in later years is indexed. \\ In a floating price regime, where capacity is bought for a gas year beyond the one following the auction, the reserve price is not known, as it will not be calcu- lated until the auction prior to the gas year, unless the applied tariff period exceeds one year. Therefore, the clearing price will only reflect the indicative reserve price, and not the actual payable price.

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