Table of Contents Table of Contents
Previous Page  145 / 272 Next Page
Information
Show Menu
Previous Page 145 / 272 Next Page
Page Background

TAR NC Implementation Document – Second Edition September 2017 |

145

Tariff Principles

TARIFF PRINCIPLES FOR INCREMENTAL

CAPACITY

Responsibility: TSO/NRA responsibility: TSOs submit the project proposal to

NRAs; NRAs take and publish coordinated decisions on the project proposal

Adjustment of the reference price

The reference price is the minimum price at which TSOs must accept a request for

incremental capacity. For the calculation of the economic test, reference prices

must be determined by including all relevant assumptions related to the offer of

incremental capacity into the RPM.

If a fixed payable price approach is proposed for the incremental capacity and

approved by the NRA, then the reserve price must be based on projected invest-

ment and operating costs. Once the incremental capacity is commissioned, the

reserve price must be adjusted proportionally to reflect the difference between the

projected investment costs and the actual investment costs, regardless of a positive

or negative difference. Figures 40 and 41 show two examples of adjustments to the

reference price.

ARTICLE 33

Figure 40:

Adjustment of the reference price where the projected investment costs are lower than

actual investment costs in case of fixed payable price

projected investment costs

actual investment costs

projected operation costs

projected operation costs

Proportional adjustment of

Reserve Price due to higher

actual investment costs

before commissioning

after commissioning

Figure 41:

Adjustment of the reference price where the projected investment costs are higher

than actual investment costs in case of fixed payable price

projected investment

costs

actual investment costs

projected operation costs

projected operation costs

Proportional adjustment of

Reserve Price due to lower

actual investment costs

before commissioning

after commissioning