ENTSOG Tariff NC - Implementation Document 2nd Edition

Reconciliation via a reference price methodology and a complementary revenue recovery charge

Reconciliation of the regulatory account through use of the applied RPM is an ex-post process. The TAR NC foresees an option to apply a CRRC at non-IPs. The example below shows how to use such an option. The only current approach is in Great Britain where capacity-based transmission tariffs are set before the tariff period, assuming that all technical capacity will be con- tracted. Since the actually contracted capacity never coincides with the technical capacity, the CRRC is then adjusted within the tariff period in order to mitigate any future under-recovery. The CRRC can be set to zero if there is no under-recovery in future. Figure 24 shows the process of revenue reconciliation.

under-/over-recovery

…used to reduce congestion (for auction premia that fed into over-recovery)

…partially met in line with incentive efficiency schemes

and

…partially put in the regulatory account

…fully put in the regulatory account

which is reconciled as follows

at IPs

capacity charge only

Under-/over-recovery is taken into account when calculating future tariffs per applied RPM

at non-IPs

capacity charge and, if any, CRRC

Figure 24: Process of revenue reconciliation

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