ENTSOG Tariff NC - Implementation Document 2nd Edition

Cost Allocation Assessments

ARTICLE 5 COST ALLOCATION ASSESSMENTS

Responsibility: subject to consultation per Article 26(1) by TSO/NRA, as NRA decides; subject to decision by NRA, a deviation above 10% threshold needs to be justified by the NRA in the decision

General As part of the periodic consultation   1) , NRAs will decide whether TSOs or NRAs performup to two assessments to comply with the principle of avoiding cross-subsidies between network uses. One assessment is for capacity charges , the other, if any, is for commodity charges . These assessments help indicate the cost-reflectivity of proposed tariffs based on the cost drivers set out in Article 5(1). The assessments involve calculations that may be based on forecasted revenues, bookings, flows and cost drivers, potentially based on historical data.

Pipeline Cross-system network use

Intra-system network use

Entry-exit system

Intra-system network use

Cross-system network use

Figure 11: Basis for performing cost allocation assessments

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

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TAR NC Implementation Document – Second Edition September 2017