ENTSOG Tariff NC - Implementation Document 2nd Edition

Application – by each TSO – of the tariffs derived for the joint entity makes it possi- ble to obtain results for postage stamp and CWD in terms of revenues. Note that the value of the ITC is still not determined at this stage.

OBTAINED REVENUES

Postage Stamp

CWD

Postage Stamp

CWD

Entry A2

9.64m€

6.05m€

Entry B1

57.86m€

61.4m€

TSO B

TSO A

Exit Dom A3

48.21m€

51.01m€

Exit Dom B2

14.46m€

10.0m€

Exit A4

4.82m€

6.52m€

Sum

72m€

71m€

Sum

62.68m€

63.59m€

ITC

– 7.32m€

– 6.41m€

ITC

7.32m€

6.41m€

Revenues after ITC

65m€

65m€

Revenues after ITC

70m€

70m€

Table 49: Revenue table after the merger (joint case)

The ITC value is derived by difference between the allowed revenue of each TSO and the revenue collected via the tariffs derived for the joint entity. The model indicates that an ITC of 7.32M€ must be collected by TSO B through its tariffs, and passed on to TSO A. Compared to the pre-merged situation, the revenue reallocation after the removal of points A1 and B3 is performed via a tariff increase at all points in the postage stamp case, but via a mixed evolution of tariffs depending on the points in the CWD case. This is the same conclusion as the one to be displayed next in the separate case.

REVENUE SHORTFALL OF POINTS A1 AND B3 HAS TO BE COVERED AT OTHER POINTS Revenue to recover – m€ Revenue to recover – %

Post Stamp

CWD Post Stamp

CWD

TSO A

Revenue A1

29m€

28m€

41%

40%

TSO B

Revenue B3

24m€

25m€

38%

39%

Table 50: Revenue reallocation after the merger (joint case)

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