ENTSOG Tariff NC - Implementation Document 2nd Edition

Tariff changes and trends: Figure 36 shows an example of information to be published on tariff changes/trends for a given standard capacity product. The regulatory period is four years, and the prevailing tariff period is year 1 of 4, while the information is published for the tariff period which is year 2 of 4. Therefore, the reserve price for year 2/4 is binding while the reserve prices for years 3/4 and 4/4 are predictions.

Year 1/4 (Y ) Reserve price = 32 units

Year 2/4 (Y+1) Reserve price = 30 units

Year 3/4 (Y+2) Reserve price = 31 units

Year 4/4 (Y+3) Reserve price = 38 units

Tariff change: –2 units Article 30(2)(a)(i)

Tariff trend: +1 unit Article 30(2)(a)(ii)

Tariff trend: +8 units Article 30(2)(a)(ii)

Figure 36: Example 1 of publication of tariff changes and trends

Table 17 shows another example of publication of tariff changes and trends for a yearly standard capacity product in the situation where the prevailing regulatory period finishes in 2022. The Table indicates the future tariffs. ENTSOG received stakeholder feedback to actually display the ‘ future tariffs ’ forecasted for the tariff periods within the remainder of the regulatory period. ENTSOG notes that it may also be possible to publish ‘ the difference ’ in the tariffs as set out by the TAR NC using other approaches, such as expected ranges for tariffs (displayed as the minimum and maximum difference using the tariffs), percentage changes (displayed as percentage increase or decrease) or expected ranges for percentage changes (displayed as the minimum and maximum difference using percentage). From stakeholder perspective, such other approaches should complement and not substitute the display of ‘ future tariffs ’. ENTSOG agrees with this feedback and further notes that information on tariff changes and trends will be based on the best estimates of a TSO/NRA.

EXAMPLE 2 OF PUBLICATION OF TARIFF CHANGES AND TRENDS

Entry points

Exit points

Year in regulatory period

Tariff period

Entry 4 (new)

Exit 4 (new)

Entry 1 Entry 2 Entry 3

Exit 1 Exit 2 Exit 3

Prevailing tariff period (Y =0)

2019

10.05 32.32 32.32 –

38.05 58.82 42.82 –

Tariff period for publication (Y +1)

2020

20.03 29.74 28.50 –

36.02 56.73 42.30 –

Change from (Y =0) to (Y +1)

2020 vs. 2019 9.98 – 2.58 – 3.82 –

– 2.03 – 2.09 – 0.52 –

Forecast for the subsequent tariff period (Y +2)

2021

30.20 30.20 30.20 –

37.50 60.00 45.00 –

Trend from (Y +1) to (Y +2)

2021 vs. 2020 10.17 0.46 1.70 –

1.48 3.27 2.70 –

Forecast for the subsequent tariff period (Y +3)

2022

38.00 38.00 38.00 38.00 40.00 67.00 50.00 50.00

Trend from (Y +1) to (Y +3)

2022 vs. 2020 17.97 8.26 9.50 n / a

3.98 10.27 7.7 n / a

Table 17: Example 2 of publication of tariff changes and trends

The information on tariff trends will be provided to the stakeholders as tentative. However, explanations must be sufficient to enable third parties to make reasonable estimates of the tariffs up until the end of the current regulatory period. If any input parameters might significantly affect future tariffs, their potential impact should be disclosed.

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