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Therefore, the calculation steps are:
1) ‘Calculation of a VIP tariff by each TSO’:
As the first step, the tariff value at the border side 1 will be the result of the ap-
plication of the individual RPM separately by TSO C and by TSO E for all their
products. Each TSO therefore first derives its VIP tariff according to its capaci-
ties at each IP. TSO C would have a VIP tariff of 0.8€/(MWh/d) for a capacity of
40 units which is the sum of capacity at a Green and Red IPs (20 units + 20
units), while TSO E would have a VIP tariff of 0.88€/(MWh/d) for a capacity of
100 units which is the sum of capacity at a Green and Red IPs (40 units +
60 units).
2) ‘Calculation of the weighted average of the results’:
The second step requires the calculation of a weighted average of the two tariffs
resulting from the first step. In the figure above there is a forecasted contracted
capacity 40 units on the VIP of TSO C, and 100 units on the VIP of TSO E. The
weighted tariff on the side of entry-exit system 1 would then be as follows:
P = = 0.86€/(MWh/d)
3) ‘For bundled capacity: summing up the results’:
After these two steps the VIP tariff at one side of the border is known for the
unbundled capacity product. This VIP combines two IPs of two TSOs respec-
tively. The price of the bundled capacity product is calculated as described in
section ‘Bundled capacity’ above.
If the TSOs are aware of each other’s tariffs at the stage of their calculation then step
1 and step 2 can be merged into one step. Such ‘merging’ therefore does not
depend on the RPM applied and whether it allows merging physical IPs in a VIP.
40 × 0.8€/(MWh/d) + 100 × 0.88€/(MWh/d)
40 + 100