ENTSOG Tariff NC - Implementation Document 2nd Edition

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TAR NC Implementation Document – Second Edition September 2017 | 133
Tariff changes and trends: Figure 36 shows an example of information to be
published on tariff changes/trends for a given standard capacity product. The
regulatory period is four years, and the prevailing tariff period is year 1 of 4, while
the information is published for the tariff period which is year 2 of 4. Therefore, the
reserve price for year 2/4 is binding while the reserve prices for years 3/4 and 4/4
are predictions.
Table 17 shows another example of publication of tariff changes and trends for a
yearly standard capacity product in the situation where the prevailing regulatory
period finishes in 2022. The Table indicates the future tariffs. ENTSOG received
stakeholder feedback to actually display the ‘future tariffs’ forecasted for the tariff
periods within the remainder of the regulatory period. ENTSOG notes that it may also
be possible to publish ‘the difference’ in the tariffs as set out by the TAR NC using
other approaches, such as expected ranges for tariffs (displayed as the minimum
and maximum difference using the tariffs), percentage changes (displayed as
percentage increase or decrease) or expected ranges for percentage changes
(displayed as the minimum and maximum difference using percentage). From
stakeholder perspective, such other approaches should complement and not
substitute the display of ‘future tariffs’. ENTSOG agrees with this feedback and
further notes that information on tariff changes and trends will be based on the best
estimates of a TSO/NRA.
EXAMPLE 2 OF PUBLICATION OF TARIFF CHANGES AND TRENDS
Tariff period
Year in
regulatory
period
Entry points Exit points
Entry 1 Entry 2 Entry 3 Entry 4
(new) Exit 1 Exit 2 Exit 3 Exit 4
(new)
Prevailing tariff period (Y =0) 2019 10.05 32.32 32.32 – 38.05 58.82 42.82 –
Tariff period for publication (Y +1) 2020 20.03 29.74 28.50 – 36.02 56.73 42.30 –
Change from (Y =0) to (Y +1) 2020 vs. 2019 9.98 – 2.58 – 3.82 – – 2.03 – 2.09 – 0.52 –
Forecast for the subsequent tariff
period (Y +2) 2021 30.20 30.20 30.20 – 37.50 60.00 45.00 –
Trend from (Y +1) to (Y +2) 2021 vs. 2020 10.17 0.46 1.70 – 1.48 3.27 2.70 –
Forecast for the subsequent tariff
period (Y +3)
2022 38.00 38.00 38.00 38 .00
Trend from (Y +1) to (Y +3) 2022 vs. 2020 17.97 8.26 9.50 n / a 3.98 10.27 7.7 n / a
Table 17: Example 2 of publication of tariff changes and trends
The information on tariff trends will be provided to the stakeholders as tentative.
However, explanations must be sufficient to enable third parties to make reasonable
estimates of the tariffs up until the end of the current regulatory period. If any input
parameters might significantly affect future tariffs, their potential impact should be
disclosed.
Figure 36: Example 1 of publication of tariff changes and trends
Year 1/4 (Y )
Reserve price = 32 units
Year 2/4 (Y+1)
Reserve price = 30 units
Year 3/4 (Y+2)
Reserve price = 31 units
Year 4/4 (Y+3)
Reserve price = 38 units
Tariff change:
–2 units
Article 30(2)(a)(i)
Tariff trend:
+1 unit
Article 30(2)(a)(ii)
Tariff trend:
+8 units
Article 30(2)(a)(ii)