ENTSOG Tariff NC - Implementation Document 2nd Edition

The allocation of entry commodity 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 tariffs and the entry commodity allocated to cross-system use (Table C, blue font). The rest of the entry commodity revenues are then allocated to intra-system use. Exit commodity revenues are determined by the exit flows and the exit commodity tariffs. The commodity tariff for the intra-system exit (Consumption point) times its respective exit flow determines the exit commodity revenue from intra-system use. The rest of the exit commodity 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 (red font) is the addition of the Driver for each entry (Intra-Use) which were introduced in Table C (red font). Cost driver for entry Cross is calculated analogously. Cost driver exit cross and intra are simply the addition of the drivers for exit points in Table C. Cost driver exit intra is the cost driver of the consumption point and cost driver exit cross the addition of the oth- er four drivers for exit points. The values 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 commodity revenues for intra-system use. The parameter is therefore the addition of both the exit and entry commodity revenues from cross-system use. With those four parameters highlighted in blue, 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 for the commodity-based CAA.

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TAR NC Implementation Document – Second Edition September 2017