ENTSOG Tariff NC - Implementation Document 2nd Edition

For performing the assessment, to determine the capacity revenues obtained by intra- or cross-system network use according to Article 5(5), the entry capacity itself must be allocated to intra- or cross-system use. As set out in Article 5(5)(a), the entry capacity allocated to cross-system use must be equal to the actual total cross-system exit capacity. Entry capacities allocated to cross-system use are therefore calculated as in the following formula. This guarantees that the total entry capacity for cross-system use equals the 690 of total cross-system exit capacity  1) .

Entry Capacity for cross-system use can therefore not be determined just by the share of cross-system exit capacity to total exit-capacity, but it must be as per Article 5(5)(a). Only the rest of the capacities of each entry will then be allocated to intra-system use. Table D: Capacity revenue, tariffs, allocation of revenues and conduction of test In this table, the setting of a total of capacity revenue as well as a targeted split in capacity revenues for exit and entry is introduced, with a 40/60 entry-exit split decided arbitrarily. Therefore entry and exit capacity revenues are determined. Entry and exit capacity tariffs are also arbitrarily set here, because RPM derivation of tariffs is not part of this example on CAA.

TABLE D: CAPACITY REVENUE. TARIFFS. ALLOCATION OF REVENUES AND CONDUCTION OF TEST

Exit tariffs

Capacity revenue (€)

IP 1

IP 2

IP Exit 5

IP 3

Consumption

800,000

Entry share

40% 98

147

220

147

122

Exit share

60%

Entry revenues

Entry Tariffs

320,000

Exit revenues

LNG

480,000

265

Entry revenues dedicated for Intra

IP 1

212,869

106

Acc. to Art 5(5)(c)

Entry revenues dedicated for Cross

107,131

IP Entry 4

159

Acc. to Art 5(5)(b)

Exit revenues from Intra

IP 2

366,000

133

Exit revenues from Cross

IP 3

113,060

106

Revenue for Intra

578,869

Revenue for Cross

Test

220,191

Cost driver for Entry Intra

385,728

Ratio intra

0.4705

Cost driver for Exit Intra

Ratio cross

844,660

0.3507

Cost driver for Intra

CAA

1,230,388

29.18%

Cost driver for Entry Cross

314,570

justification required

Cost driver for Exit Cross

313,330

Cost driver for Cross

627,900

Table 28: Capacity revenue, tariffs, allocation of revenues and conduction of test

 1) In Table C, compare 690 as the total of the entry column in blue in the previous table, and the total of Exit columns IP 1, IP 2, IP Exit 5 and IP 3 (690 = 150 + 60 + 260 + 220).

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