ENTSOG Tariff NC - Implementation Document 2nd Edition

E-E System I

E-E System II

No transfer fee

Case 1

Exit

Exit

Non-discounted capacity

Non-discounted capacity

Entry

Entry

Case 2

Exit

Exit

Discounted capacity

Discounted capacity

Entry

Entry

Transfer fee applies

Figure 64: Discount reduction for some storage facilities in Germany

Cross-bookings from the discounted to the non-discounted account are prohibited. As in case 1) neither a discount for the entry capacity nor for the exit capacity was granted, no discount reduction applies. Actually the same price as for the IP was paid and no discrimination of the competing IP is given. In case 2), capacities have been injected and withdrawn at a discounted tariff. Consequently the storage operator has to apply to its customers a discount reduction to avoid a price discrimination towards the competing IP. Therefore, the discount reduction corresponds to an ex post corrective charge to take account of the actual use of the storage facility ‘as an IP’ by network users. The discount reduction is calculated as follows: (a) The storage operator has to determine the maximum hourly capacity for each day on which gas has between transferred between both entry-exit-systems through the gas storage. (b) The maximum hourly transferred capacity is subject to a storage discount reduction which consists of two components, one storage entry price component and one storage exit price component. The storage entry price component is the difference between the highest and lowest offered exit capacity tariff at the respective storage of that TSO from which the gas was injected. The storage exit price component is the difference between the highest and lowest offered entry capacity tariff of the adjacent TSO. (c) Based on the determined storage entry and storage exit price components of the discount reduction as well as the maximum hourly capacity (see a)), the discount reduction is calculated. The discount reduction to be paid to the TSO from which the gas was injected into the storage is calculated by multiplying the storage entry price component with the maximum hourly transferred capacity and a multiplier of 1.4. Further, the discount reduction to be paid to the TSO into which the gas from the storage was withdrawn is calculated by multiplying the storage exit price component with the maximum hourly transferred capacity and a multiplier of 1.4. Consequently, for the bypassing of an IP through a storage a multiplier of 1.4 is applied for those gas volumes which were granted a discount before. The 40% on top of the non-discounted tariff is used to restore tariff equality between tariffs at the bypassed IP and tariffs at the storage used as an IP. The discount reduction is collected by the storage operator for the benefit of both TSOs.

TAR NC Implementation Document – Second Edition September 2017 | 211