ENTSOG Tariff NC - Implementation Document 2nd Edition

WHEN TO APPLY EACH PAYABLE PRICE APPROACH AND WHY

ARTICLE 25

Responsibility: fixed payable price approach for existing capacity under a price cap regime is subject to consultation per Article 26(1) by TSO/NRA, as NRA decides; subject to decision by NRA The TAR NC sets out the rules for offering different payable price approaches under different regulatory regimes, and for different types of capacity. Table 10 shows the distinction. Incremental capacity appears together with existing capacity, due to the definition of the ‘offer level’ in Article 3(5) of the CAM NC, which represents ‘the sum of the available capacity and the respective level of incremental capacity’ . Also, it is noteworthy that the same TSO can function simultaneously under price cap and non-price cap regulatory regimes. In such case, the relevant rules apply to the respective part of the TSO’s assets.  1) Conditions for offering fixed or floating payable price approaches may mitigate concerns about potential cross-subsidies between network users booking on a fixed price basis and those booking on floating price basis, which can arise from the reconciliation of under-recovery in a non-price cap regime. Under such a regime, only a floating payable price approach is allowed for existing capacity. A fixed payable price approach is allowed for incremental capacity where one of the follow- ing conditions is met: \\ An alternative allocation mechanism set out in Article 30 of the CAM NC is used; \\ A project is included in the Union list of projects of common interest as set out in Article 3 of Regulation (EU) No 347/2013   2) . Under the price cap regime, the concerns about the potential cross-subsidies between network users resulting from reconciliation of under-recovery do not apply. Therefore, the floating payable price approach or the fixed payable price approach, or both, may be offered and no conditions are applied.

CONDITIONS FOR OFFERING PAYABLE PRICE APPROACHES

Non-price cap regime

Price cap regime

Existing capacity

Only floating may be offered

Floating and/or fixed may be offered

Floating or fixed* may be offered * Fixed can only be offered with conditions

Existing and incremental capacity

Table 10: Conditions for offering payable price approaches

 1) See Chapter I ‘General provisions’, Section ‘Article 3(3) and 3(17) – non-price cap and price cap regimes’.  2) Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 (OJ L 115, 25.4.2013, p. 39).

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TAR NC Implementation Document – Second Edition September 2017