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TAR NC Implementation Document – Second Edition September 2017
Annex I
Article 13 – Impact of Multipliers
on the Reference Price for
Non-Price Cap Regimes
The example shows the impact of a multiplier on the revenue recovery for one year.
The example is based on the following inputs:
\\
Allowed revenue = 3,000€;
\\
Forecasted contracted capacity = 250MWh/day;
\\
Yearly reserve price =
;
Four scenarios with different Multipliers (M) and seasonal factors: The level of
contracted capacity over the year (which is contracted with yearly, quarterly, monthly
and daily bookings
1)
can be found in Figure 69.
Usually, such a non-yearly booking is hard to forecast, because it depends on
weather and market conditions. One way to limit the risk of under- or over-recovery
is to introduce multipliers for non-yearly bookings, which are an incentive for
shippers to book long-term. At the same time, multipliers and seasonal factors can
limit a tariff increase, which is needed to meet the revenue cap. In the example, the
non-yearly bookings were perfectly forecasted. This is to show only the effect of
multipliers on the tariff, which is a simple postage stamp in the example.
1) The figures of daily contracted capacity in the table represent the average of daily bookings over each respective month.
0
100
50
150
200
250
MWh/day
Oct
Nov
Dec
Jan
Feb
Mar
April
May
June
July
Aug
Sep
average system usage per month
Booking – Daily
Booking – Quarterly
Booking – Annual
Booking – Monthly
Contracted Capacity and System Usage
Figure 69:
Contracted capacity and system usage in example of impact of low multipliers on
yearly tariff