ENTSOG Tariff NC - Implementation Document 2nd Edition

Annex J Article 14 – Example of Calculating Reserve Prices for Firm Non-Yearly Capacity Products without Seasonal Factors

1 Example of pricing for a quarterly product: How much does it cost to book quarterly capacity from October to December if the annual tariff is 1€/(kWh/h)/year and the corresponding quarterly multiplier is 1.4 ?

P st

= m × (p y

/ 365) × d

P st

= 1.4 × (1/365) × 92

Quarterly price = 0.3529€/(kWh/h)/q ( •– the capacity to flow 1kWh every hour of the considered fourth quarter costs a total of 0.3529€)

2 Example of pricing for a monthly product: How much does it cost to book monthly capacity for July if the annual tariff is 1€/(kWh/h)/year and the corresponding monthly multiplier is 1 ?

P st

= m × (p y

/ 365) × d

P st

= 1 × (1/365) × 31

Monthly price = 0.0849€/(kWh/h)/m ( •– the capacity to flow 1kWh every hour of the considered month of July costs a total of 0.0849€)

3 Example of pricing for a daily product: How much does it cost to book daily capacity for February if the annual tariff is 1€ (kWh/h)/year and the daily multiplier is 1.3 ?

P st

= m × (p y

/ 365) × d

P st

= 1.3 × (1/365) × 1

Daily price = 0.0036€/(kWh/h)/d ( •– the capacity to flow 1kWh every hour of the considered day of February costs a total of 0.0036€)

4 Example of pricing for a within-day product: How much does it cost to book within-day capacity (rest of the day = 18 hours) for March if the annual tariff is 1€/(kWh/h)/year and the within-day multiplier is 1.5 ?

P st

= m × (p y

/ 8760) × h

P st

= 1.5 × (1/8760) × 18

Within-day price = 0.0031€/(kWh/h)/within-day duration ( •– the capacity to flow 1kWh every hour of the remaining 18 hours of the considered day of March costs a total of 0.0031€)

TAR NC Implementation Document – Second Edition September 2017 | 233