ENTSOG Tariff NC - Implementation Document 2nd Edition

Then, as in Part I, and for comparison of tariffs derived from RPM application, tariffs are calculated in the case of the postage stamp RPM and following the rules of the CWD counterfactual. \\ For postage stamp, entry (resp. exit) tariffs are derived for each TSO by multi- plying the allowed revenue augmented by the ITC amount and the new entry (resp. exit) share of revenues, and dividing the result by the new total forecasted entry (resp. exit) bookings. Tariffs are identical for all points in entry and all points in exit: this is a result of postage stamp. The entry-exit split has changed for both TSOs A and B, after the removal of former IPs, which explains why tariffs will generally be different after the merger. For TSO B, which collects the ITC in this example, tariffs will necessarily increase at all points compared to the pre-merger situation, since an increased amount of revenues has to be collect- ed from the same tariff charged at a reduced number of points. Therefore, at all points, postage stamp tariffs for the TSO in charge of collecting the ITC revenue always increase after the merger. The new tariffs are indicated in the table below.

TARIFFS – € /(KWh/h)/a

Postage Stamp

CWD

Entry A2

4.62

15.00

TSO A

Exit Dom A3

4.62

2.73

Exit A4

4.62

2.73

Entry B1

5.00

3.13

TSO B

Exit Dom B2

5.00

12.50

Table 52: Tariffs after the merger (separate case)

\\ For CWD, again it is necessary to consider distances between points, with the same assumptions on distance calculations as before. Tariffs derived with the CWD RPM are presented in the above table. Compared to the pre-merger situation, the size of the distance matrices has shrunk due to the removal of points.

DISTANCE MATRICES

Exit Dom A3

Exit A4

TSO A

Entry A2

450

450

Exit Dom B2

TSO B

Entry B1

550

Table 53: Distance matrices after the merger (separate case)

TAR NC Implementation Document – Second Edition September 2017 | 223