ENTSOG Tariff NC - Implementation Document 2nd Edition

AUCTION PREMIUM

ARTICLE 19(5)

Responsibility: subject to NRA decision

Difference between the regulatory account and ‘specific separate account’ Article 19(1)–(4) refers to a regulatory account that has a different use than the ‘specific separate account’ referred to in Article 19(5) for any earned auction premi- um. The regulatory account is for monitoring any under-/over-recovery of the TSO’s transmission services revenue, and limiting its financial exposure or reimbursing any excess recovery to users. In contrast, a specific separate account for an auction premium facilitates monitoring the TSO’s revenue collected from the marginal price a network user is willing to pay in addition to the reserve price. Use of auction premium A TSO may attribute an auction premium to a specific account separate from the regulatory account. Alternatively, the auction premium may be attributed to the regulatory account, in which case it will affect future transmission tariffs. The NRA can decide how to use the auction premium. Table 9 shows options that depend on the applicable regulatory regime.

USE OF AUCTION PREMIUM IN DIFFERENT REGULATORY REGIMES

Use of auction premium/Regulatory regime Non-price cap

Price cap

Reduce physical congestion

Yes

Yes

Decrease transmission tariffs

Yes

No

Table 9: Use of auction premium in different regulatory regimes

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