ENTSOG Tariff NC - Implementation Document 2nd Edition

Non-physical backhaul capacity ‘Non-physical backhaul’ means that at unidirectional entry or exit points the volume of gas is nominated to flow in the opposite direction to the physical flow. TSOs offer firm capacity only in one direction, and the capacity offered in the other direction – non-physical backhaul – is interruptible capacity. ENTSOG received stakeholder feedback that the non-physical backhaul can be viewed as conditional firm capacity product. ENTSOG does not support such an approach as ENTSOG believes that conditional firm capacity falls into the category of firm capacity, whereas non-phys- ical backhaul is interruptible capacity. Article 16 describes the methodology for pricing interruptible capacity products, which applies to all standard interruptible capacity products regardless of the direc- tion of the gas flow at a given IP. ENTSOG believes that non-physical backhaul capacity is an interruptible product, priced as set out in the TAR NC. ENTSOG received stakeholder feedback that it is unclear how to price non-physical backhaul capacity as there is only the reference price at a uni-directional point in the direction of the gas flow and no reference price at such point in the opposite direction, i. e. direction of non-physical backhaul. ENTSOG concluded that there is no issue with pricing non-physical backhaul using the same pricing procedure as is applied for all the points where interruptible capacity, including non-physical capacity, is offered. For example, the following approaches can be possible: \\ Postage stamp RPM: first tariffs for firm capacity at all the points are calculated. Then for points where the non-physical backhaul is offered, the respective tariff is calculated based on the probability of interruption related to non-physical backhaul. \\ Other RPMs: a point where non-physical backhaul is offered is taken into account in RPM calculation. The capacity attributed to such entry/exit point is the technical capacity of the exit/entry point with the physical flow. The calculations result in a tariff for firm capacity at such point and then, this tariff is used for calculating the tariff for non-physical backhaul.

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