ENTSOG Tariff NC - Implementation Document 2nd Edition

The allocation of entry capacity revenues to cross-system use (blue font) is made in accordance to Article 5(5)(b). It is the sum of the products of the entry capacity tariffs and the entry capacities allocated to cross-system use (Table C, blue font). The rest of the entry capacity revenues are then allocated to intra-system use. Exit capacity revenues are determined by the exit capacity and the exit tariffs. The tariff for the intra-system exit (consumption) times its respective exit capacity determines the exit capacity revenue from intra-system use. The rest of the exit capacity revenues are therefore coming from cross-system use. The cost drivers for intra- and cross-system uses are determined by adding the drivers shown in Table C. Cost drivers for entry Intra is the addition of the Driver for each entry (Intra-Use) which were introduced in Table C. Cost driver for entry Cross is calculated analogously. Cost driver exit cross and intra are simply the addition of the drivers for the relevant exit points in Table C. Cost driver exit intra is the cost driver of the consumption point and cost driver exit cross is the addition of the other four drivers for exit points. The value of Cost driver for Intra is now the addition of the respective intra drivers for the entry and exit. Cost driver cross is the addition of the respective cross drivers for both entry and exit. These two parameters represent and from Article 5 in the TAR NC. The amount of which is stated in the TAR NC is the addition of both abovementioned capacity revenues for intra-system use. The parameter is therefore the addition of both the exit and entry capacity revenues from cross-system use. With those four parameters highlighted in green, the CAA can be performed as described in the TAR NC. The ratios for intra and cross can be calculated and the parameter (CAA in the table above) can be tested to be above 10%. The NRA has therefore to give justification regarding this value. This Part considers the CAA on commodity-based transmission tariffs. Compared to the previous Part on CAA for capacity-based transmission tariffs, one assumes now that the amount of gas flows at exit IPs corresponds to ‘cross-system network use’ and the amount of gas flows at domestic consumption points corresponds to ‘intra-system network use’. Further, Cost Drivers in this Scenario are assumed to be a combination of distance and gas flows, which is consistent with Article 5(1)(b)(ii). For the expected revenues, the allowed total commodity revenue and a split of this into exit and entry commodity shares is given. Entry (resp. exit) commodity tariff is common to all entry (resp. exit) points in the system, as per Article 4(3)(a)(ii). Entry and exit commodity tariffs are set arbitrarily, with respective values being 3€/GWh and 5€/GWh. In the following sections, calculations are explained step by step based on a fictional TSO network. Tables with exemplary figures are added to provide for easier understanding. Some assumptions are the same as the ones for the CAA for capacity tariffs (cf. above). PART II CAA RELATING TO TRANSMISSION SERVICES REVENUE FROM COMMODITY-BASED TARIFFS

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TAR NC Implementation Document – Second Edition September 2017