ENTSOG Tariff NC - Implementation Document 2nd Edition

Chapter II ‘Reference price methodologies’

Scope: IPs and non-IPs Application date: 31 May 2019

This Chapter addresses the methodologies that determine reference prices . A reference price applies to a yearly firm standard capacity product for each entry and exit point, and provides the basis for calculating the reserve prices for the different standard firm and interruptible capacity products. A general requirement is to apply the same reference price methodology (‘RPM’) at all the entry and exit points within an entry-exit system: both IPs and non-IPs. The only exception is for a multi-TSO entry-exit system . If such a system is located with- in a MS, the same RPM should apply jointly to all TSOs involved by default. As an exception and subject to specific requirements, it is also possible to apply the same RPM separately to each TSO involved. Another exception permits the application of different RPMs when planning entry-exit system mergers. The TAR NC does not prescribe default rules or specific requirements for multi-TSO entry-exit systems spanning more than one MS. Therefore, the TSOs involved can apply the same RPM jointly or separately, or different RPMs. The TAR NC does not insist on a particular RPM. Instead, it specifies the require- ments for such methodologies: their aims and the possible adjustments within the RPM. Chapter VII ‘Consultation requirements’ calls for a consultation document explaining how the proposed RPM meets such requirements. The TAR NC requires a comparison of the resulting indicative reference prices to those derived from the clearly defined capacity weighted distance (‘CWD’) counterfactual. This Chapter also permits discounts for entry-points-from/exit-points-to storage facilities . The discounts apply to reference prices, and by default must be no less than 50%, but can be less than 50% in specific cases. Discounts are subject to a TSO/NRA consultation conducted at least every five years. Discounts are also possible at entry-points-from LNG facilities , and at entry-points-from/exit-points-to infrastructure ending the isolation of gas transmission systems in certain MSs. These discounts are subject to NRA consultation every tariff period.

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