ENTSOG Tariff NC - Implementation Document 2nd Edition

For performing the assessment, to determine the commodity revenues obtained by intra- or cross-system network use according to Article 5(5), the entry flow itself must be allocated to intra- or cross-system use. As set out in Article 5(5)(a), the entry flow allocated to cross-system use must be equal to the actual total cross-system exit flow. Entry flow allocated to cross-system use is therefore calculated as

in the following formula. This guarantees that the total entry flow for cross-system use equals the 90.21 TWh of total cross-system exit flow  1) .

Therefore, entry flows for cross-system use cannot be determined just by the share of cross-system exit flows to total exit capacity, but must be as per Article 5(5)(a). Only the rest of the flows of each entry will then be allocated to intra-system use.

Table D: Commodity revenue, tariffs, allocation of revenues and conduction of test In this table, the setting of a total of allowed commodity revenue as well as arbitrarily set values for entry and exit commodity revenue are introduced. Therefore entry and exit commodity revenues are determined. Entry and exit commodity tariffs are also arbitrarily set here, because derivation of commodity tariffs is not part of this example on CAA for commodity-based tariffs .

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

Exit tariffs (€/GWh)

Commodity revenue (€)

IP 1

IP 2

IP Exit 5

IP 3

Consumption

5,101,672

Entry share

1,913,127

5

5

5

5

5

Exit share

3,188,545

Acc. to Art 5(5)(c)

Entry revenues dedicated for Intra

Entry Tariffs (€/GWh)

1,642,500

Acc. to Art 5(5)(b)

Entry revenues dedicated for Cross

270,627

LNG

3

Exit revenues from Intra

IP 1

2,737,500

3

Exit revenues from Cross

IP Entry 4

451,045

3

Revenue for Intra

IP 2

4,380,000

3

Revenue for Cross

IP 3

721,672

3

Cost driver for Entry Intra

154,150

Cost driver for Exit Intra

Test

154,150

Cost driver for Intra

Ratio intra

308,301

14.2069

Cost driver for Entry Cross

43,472

Ratio cross

8.2699

Cost driver for Exit Cross

CAA

43,793

52.83%

Cost driver for Cross

justification required

87,264

Table 32: Commodity revenue, tariffs, allocation of revenues and conduction of test

 1) Compare 90.21 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 (90.21 = 13.8 + 14.4 + 47.3 + 14.7), taking into account rounded values in the previous blue table.

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