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TAR NC Implementation Document – Second Edition September 2017 |

211

Cross-bookings from the discounted to the non-discounted account are prohibited.

As in case 1) neither a discount for the entry capacity nor for the exit capacity was

granted, no discount reduction applies. Actually the same price as for the IP was

paid and no discrimination of the competing IP is given.

In case 2), capacities have been injected and withdrawn at a discounted tariff.

Consequently the storage operator has to apply to its customers a discount reduction

to avoid a price discrimination towards the competing IP. Therefore, the discount

reduction corresponds to an ex post corrective charge to take account of the actual

use of the storage facility ‘as an IP’ by network users. The discount reduction is

calculated as follows:

(a)

The storage operator has to determine the maximum hourly capacity for each

day on which gas has between transferred between both entry-exit-systems

through the gas storage.

(b)

The maximum hourly transferred capacity is subject to a storage discount

reduction which consists of two components, one storage entry price component

and one storage exit price component. The storage entry price component is

the difference between the highest and lowest offered exit capacity tariff at the

respective storage of that TSO from which the gas was injected. The storage exit

price component is the difference between the highest and lowest offered entry

capacity tariff of the adjacent TSO.

(c)

Based on the determined storage entry and storage exit price components of

the discount reduction as well as the maximum hourly capacity (see a)), the

discount reduction is calculated. The discount reduction to be paid to the TSO

from which the gas was injected into the storage is calculated by multiplying the

storage entry price component with the maximum hourly transferred capacity

and a multiplier of 1.4. Further, the discount reduction to be paid to the TSO

into which the gas from the storage was withdrawn is calculated by multiplying

the storage exit price component with the maximum hourly transferred capacity

and a multiplier of 1.4.

Consequently, for the bypassing of an IP through a storage a multiplier of 1.4 is

applied for those gas volumes which were granted a discount before. The 40% on

top of the non-discounted tariff is used to restore tariff equality between tariffs at the

bypassed IP and tariffs at the storage used as an IP. The discount reduction is

collected by the storage operator for the benefit of both TSOs.

Figure 64:

Discount reduction for some storage facilities in Germany

E-E System II

E-E System I

Non-discounted capacity

Non-discounted capacity

Discounted capacity

Discounted capacity

Exit

Entry

Case 1

Entry

Case 2

Entry

Exit

Entry

Exit

Exit

Transfer fee applies

No transfer fee