ENTSOG Tariff NC - Implementation Document 2nd Edition

Chapter IV ‘Reconciliation of revenue’

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

This Chapter sets the requirements for reconciling transmission services revenue . However, these requirements may also apply to non-transmission services revenue , subject to the consultation and approval per Chapter VII ‘Consultation require- ments’. The rules in this Chapter include the principles of revenue reconciliation, the calcu- lation of under-/over-recovery , the rule of having only one regulatory account per TSO, and the basic requirements for its reconciliation . Most of the Chapter only applies to a non-price cap regime . The only rule that also applies to a price cap regime involves the use of the auction premium to invest in reducing physical congestion.

Chapter V ‘Pricing of bundled capacity and capacity at VIPs’

Scope: IPs Application date: entry into force (6 April 2017)

A bundled reserve price is the sum of entry and exit reserve prices of bundled capacity products. This Chapter outlines the rules for allocating the sales revenue between TSOs, from both the bundled reserve price and any associated auction premium. This Chapter also addresses the calculation of a VIP reserve price . There are two approaches considered, depending on the applicable RPM.

TAR NC Implementation Document – Second Edition September 2017 | 23