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TAR NC Implementation Document – Second Edition September 2017 |
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Miscellaneous
METHODOLOGIES AND PARAMETERS USED TO
DETERMINE THE ALLOWED/TARGET REVENUE
Responsibility: NRA’s submits information to ACER; ACER produces report
The allowed/target revenue is a basic element of tariff design. ACER must produce
a report on methodologies and parameters to determine the allowed/target revenue,
for publication within two years after the TAR NC enters into force. The TAR NC
obligates the NRAs to submit to ACER the information on methodologies and param-
eters to determine TSOs’ allowed/target revenues. ACER must set in advance the
process for gathering such information.
The minimum content of such a report is the information set out in Article 30(1)(b)(iii)
of the TAR NC, which includes: (1) types of assets included in the regulated asset
base and their aggregated value; (2) cost of capital and its calculation methodology;
(3) capital expenditures, including methodologies to determine the initial value of
the assets, methodologies to re-evaluate assets, explanations of the evolution of the
value of the assets and depreciation periods and amounts per asset type; (4)
operational expenditures; (5) incentive mechanisms and efficiency targets; and
(6) inflation indices.
ARTICLE 34