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TAR NC Implementation Document – Second Edition September 2017 |
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Chapter II ‘Reference price
methodologies’
Scope: IPs and non-IPs
Application date: 31 May 2019
This Chapter addresses the
methodologies
that determine
reference prices
.
A reference price applies to a yearly firm standard capacity product for each entry
and exit point, and provides the basis for calculating the reserve prices for the
different standard firm and interruptible capacity products.
A general requirement is to apply the same reference price methodology
(‘RPM’)
at
all the entry and exit points within an entry-exit system: both IPs and non-IPs. The
only exception is for a
multi-TSO entry-exit system
. If such a system is located with-
in a MS, the same RPM should apply jointly to all TSOs involved by default. As an
exception and subject to specific requirements, it is also possible to apply the same
RPM separately to each TSO involved. Another exception permits the application of
different RPMs when planning entry-exit system mergers.
The TAR NC does not prescribe default rules or specific requirements for multi-TSO
entry-exit systems spanning more than one MS. Therefore, the TSOs involved can
apply the same RPM jointly or separately, or different RPMs.
The TAR NC does not insist on a particular RPM. Instead, it specifies the
require-
ments
for such methodologies: their aims and the possible adjustments within the
RPM. Chapter VII ‘Consultation requirements’ calls for a consultation document
explaining how the proposed RPM meets such requirements. The TAR NC requires
a comparison of the resulting indicative reference prices to those derived from the
clearly defined capacity weighted distance
(‘CWD’)
counterfactual.
This Chapter also permits discounts for entry-points-from/exit-points-to
storage
facilities
. The discounts apply to reference prices, and by default must be no less
than 50%, but can be less than 50% in specific cases. Discounts are subject to a
TSO/NRA consultation conducted at least every five years. Discounts are also
possible at entry-points-from
LNG facilities
, and at entry-points-from/exit-points-to
infrastructure ending the isolation
of gas transmission systems in certain MSs.
These discounts are subject to NRA consultation every tariff period.