ENTSOG Tariff NC - Implementation Document 2nd Edition

Tariff Principles

TARIFF PRINCIPLES FOR INCREMENTAL CAPACITY

ARTICLE 33

Responsibility: TSO/NRA responsibility: TSOs submit the project proposal to NRAs; NRAs take and publish coordinated decisions on the project proposal

Adjustment of the reference price The reference price is the minimum price at which TSOs must accept a request for incremental capacity. For the calculation of the economic test, reference prices must be determined by including all relevant assumptions related to the offer of incremental capacity into the RPM. If a fixed payable price approach is proposed for the incremental capacity and approved by the NRA, then the reserve price must be based on projected invest- ment and operating costs. Once the incremental capacity is commissioned, the reserve price must be adjusted proportionally to reflect the difference between the projected investment costs and the actual investment costs, regardless of a positive or negative difference. Figures 40 and 41 show two examples of adjustments to the reference price.

actual investment costs

projected investment costs

Proportional adjustment of Reserve Price due to higher actual investment costs

projected operation costs

projected operation costs

before commissioning

after commissioning

Figure 40: Adjustment of the reference price where the projected investment costs are lower than actual investment costs in case of fixed payable price

Proportional adjustment of Reserve Price due to lower actual investment costs

projected investment costs

actual investment costs

projected operation costs

projected operation costs

before commissioning

after commissioning

Figure 41: Adjustment of the reference price where the projected investment costs are higher than actual investment costs in case of fixed payable price

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