ENTSOG Tariff NC - Implementation Document 2nd Edition

Binding reserve prices ‘beyond the subsequent gas year’ for fixed payable price approach Article 3(23) defines a fixed payable price as a reserve price not subject to any adjustments other than indexation. A fixed payable price is consistent with Article 12, which allows the prices published in accordance with Article 29 to remain bind- ing beyond the subsequent gas year. Anyone purchasing a yearly capacity product over consecutive years at the same time at a fixed price, pays the same reserve price indexed from one year to another for every year of the booked capacity, this is there- fore the binding price. Please see Annex H for examples. Exception: recalculation of discounts for monthly and daily interruptible products The TAR NC permits the recalculation of discounts for interruptible monthly and daily standard capacity products within a tariff period. Recalculation can occur if the probability of interruption changes by more than 20%. ENTSOG received stakehold- er feedback and agrees that such change in the probability of interruption should not be in relative but in absolute terms  1) . The intention is not to dis-incentivise the accurate forecasting of interruptible capacity sales, but merely to provide a safe- guard enabling TSOs/NRAs to adapt to changing conditions. The updated transmis- sion tariffs are subject to NRA approval. Exception: update of reference prices The TAR NC permits recalculation of the reference price within the tariff period in exceptional cases subject to the NRA approval. Recalculation can protect the TSO if, for example, tariffs were initially calculated based on forecasted contracted capacity and on forecasted flows that significantly exceed the actual demand witnessed within the tariff period due to for example an exceptionally mild winter, and if the mismatch is expected to persist for the rest of the tariff period. Other examples of ‘exceptional cases’ warranting a mid-period update could be legal changes, such as new legislation or a court decision, or else imminent bankruptcy or the material credit downgrading of a TSO. This list of exceptional cases has been clarified based on feedback received from stakeholders.

 1) The 20% probability of interruption figure which triggers a recalculation should be an absolute figure not a relative one i. e. if the probability increased from 10% to 31% (21% absolute) a recalculation should be permitted, but not if it in- creases from 10% to 12.5% (25% relative). Using the absolute figure ensures that the change in tariffs is justified due to a significant change in the probability of interruption.

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