ENTSOG Tariff NC - Implementation Document 2nd Edition

TRANSMISSION TARIFFS FOR FIRM CAPACITY PRODUCTS WITH ‘CONDITIONS’

ARTICLE 4(2)

Responsibility: subject to consultation per Article 26(1) by TSO/NRA, as NRA decides; subject to decision by NRA

Article 4(2) of the TAR NC mentions ‘conditions for firm capacity products’ . Some systems have introduced such firm capacity products with ‘conditions’ for the efficient use of the network, and to maximise the offer of firm capacity taking into account market and network characteristics. Examples include Austria, Belgium, Germany, Luxembourg and the Netherlands. The TAR NC permits the determination of transmission tariffs in a certain ‘manner’ that considers these conditions. Entry-exit systems aim for independent and seamless use of flexible entry and exit capacity regardless of underlying system characteristics, and at times across different networks operated by different TSOs. In reality physical flows, the design of the networks and their interaction constrain the ability of TSOs to guarantee firm and freely allocable capacity, and it is not always efficient to try and surmount physical constraints with additional investment. In the presence of constraints, introducing ‘conditions’ to firm standard capacity products aims for the efficient use of the network. Article 38(4) of the Amended CAM NC calls for ACER to produce a report on ‘conditionalities’ set out in firm capacity products contracts ‘having regard to their effect on efficient network use and the integration of the Union gas markets’ . ACER should prepare its report with the support of relevant NRAs and TSOs, ‘in the framework’ of its monitoring task, and within two years of the Amended CAM NC’s entry into force, which coincides with the entry into force of the TAR NC. Annex B outlines some examples of currently offered firm capacity products with ‘conditions’. In accordance with the EU and national rules, other products may be introduced for greater efficiency of the use of the transmission system.

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