ENTSOG Tariff NC - Implementation Document 2nd Edition

Complementary revenue recovery charge The TAR NC also allows an additional commodity-based transmission tariff at points other than IPs. This CRRC serves the purpose of managing revenue under- and over-recovery (for example due to assumptions of capacity sales, applied discounts, rescaling adjustment). Capacity-based transmission tariffs generate the capacity part of transmission services revenue, while a commodity-based CRRC can manage any under-recovery. The CRRC is calculated from the residual amount of revenue to be recovered and the relevant forecast demands. Where used, the CRRC applies to the flows of all network users irrespective of their portfolio of capacity products at points other than IPs. Thus, a CRRC is a price per unit flowed. NRAs must assess the cost-reflectivity of the CRRC, and the impact of any cross-subsidisation between IPs and non-IPs. The CAA takes account of the total transmission service revenue and not just the portion generated by capacity bookings. As outlined below, CAA relate to the transmission services revenue from the capacity-based transmission tariffs, and separately to the transmission services revenue from the commodity-based transmission tariffs. The CRRC affects the collective results of CAA.

Difference between a flow-based charge and a complementary revenue recovery charge

Table 3 outlines the difference between the two charges.

COMPARISON BETWEEN A FLOW-BASED CHARGE AND CRRC

Which points

Approval requirements

Charge

Aim

How expressed Calculation

Consultation per Article 26 (1)

Flow-based charge

Cover the costs mainly driven by the quantity of the gas flow

All points In monetary terms or in kind

On the basis of forecasted or historical flows, or both Same at all entry points and same at all exit points On the basis of forecasted or historical capacity allo- cations and flows, or both

Managing revenue under-/ over-recovery

Non-IPs

In monetary terms

Consultation per Article 26(1) NRA assessment of its cost-reflec- tivity and its impact on cross-

CRRC

subsidisation between IPs and non-IPs

Table 3: Comparison between a flow-based charge and CRRC

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