ENTSOG Tariff NC - Implementation Document 2nd Edition

All three scenarios in Table 6 require NRA consultation on the principles of an effective ITC mechanism and its consequences on the tariff level. As explained in Part 2, such a consultation must be conducted simultaneously with the final TSO/NRA consultation under Article 26(1), and with the NRA consultation on multipliers, seasonal factors and discounts under Article 27. The relevant NRA must publish the consultation responses on ITC consultation as well as the NRA decision on the ITC mechanism adopted. Per ENTSOG’s estimation, publication should occur simultaneously with NRA decisions on the other two consultations  1) . For ‘same separately’ and ‘different separately’ in Table 6, the TAR NC sets out certain additional process compliance requirements not shown in the table. Under Article 10(4) the NRA can permit separate application of the RPM for an initial period of up to five years from the AD 1, which is the TAR NC’s entry into force   2) . ENTSOG believes that the five-year limit could reflect the need to conduct periodic consultations under Article 26 at least every five years. As the NRA’s initially allowed time period approaches expiration, the NRA may decide to extend the period, ‘sufficiently in advance’ of the expiration date. What an inter-TSO compensation mechanism is As an example, an ‘A-to-B’ ITC may indicate that TSO A transfers a certain amount of money directly to TSO B. TSO A should actually obtain revenues equal to the allowed revenue plus compensation for the required ITC transfer; otherwise the transfer to TSO B would jeopardise revenue recovery. Similarly, TSO B’s allowed revenues should also consider the ITC transfer. The transfer reduces the revenues that TSO B will need to earn from its own capacity bookings. Annex G provides an ITC example.

 1) See Part 2 ‘Indicative timeline for the TAR NC implementation’, Chapter II ‘General timeline’, Section ‘Multi-TSO entry-exit systems within a MS’.  2) See Section ‘Article 38 – entry into force’.

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