ENTSOG Tariff NC - Implementation Document 2nd Edition

TSO’s revenue and tariffs Figure 5 illustrates the link between the TSO’s allowed/target revenue and different applicable tariffs. An asterisk indicates that Article 3 defines the given term. Green indicates the allowed/target revenue, which is the sum of the transmission services revenue indicated in grey, and the non-transmission services revenue in yellow. The transmission services revenue splits into a ‘capacity’ part indicated in purple, and a ‘commodity’ part in blue. The RPM only applies to the ‘capacity’ part of the transmission services revenue, to derive a reference price for each entry point and for each exit point. These reference prices, which are explained further below, then provide the basis for capacity-based transmission tariffs. The TAR NC does not require any specific methodology that applies to the ‘commodity’ part of the trans- mission services revenue; the sole requirement is for periodic consultation. Without specifying a methodology, Article 4(3) sets out specific requirements for commodi- ty tariffs, as also explained further below. Turning to the non-transmission services revenue in yellow, different methodologies may apply depending on the particular non-transmission service. Again, the TAR NC does not require any specific methodology; the sole requirement is for periodic consultation   1) . Without specifying a methodology, Article 4(4) sets out specific requirements for non-transmission tariffs, as explained further below. For the transmission services revenue, Figure 6 explains the cycle of: (1) applying the RPM to a TSO’s transmission services revenue; (2) deriving reference prices for all points on the transmission network; (3) setting capacity-based transmission tariffs; (4) charging such capacity-based transmission tariffs and commodity-based transmission tariffs for the transmission services; and (5) providing such services to recover the transmission services revenue. A similar cycle also applies to non-trans- mission services revenue.

to which a TSO applies

are provided to collect

transmission services

transmission services revenue

RPM

that a TSO charges for providing

via which a TSO derives

which are used to calculate reserve prices

transmission tariffs

references prices

and with prices at non-IPs and commodity-based tariffs constitute

Figure 6: Definitions: cycle of transmission services revenue, tariffs and services

 1) See Chapter VII ‘Consultations Requirements’, Section ‘Article 26(1 ) – content of the document for periodic consultation and comparison to Chapter VIII ‘Publication Requirements’.

TAR NC Implementation Document – Second Edition September 2017 | 37