ENTSOG Tariff NC - Implementation Document 2nd Edition

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TAR NC Implementation Document – Second Edition September 2017 | 37
transmission
tariffs
references prices
RPM transmission
services revenue
transmission
services
are provided
to collect
which are used to calculate
reserve prices
and with prices at non-IPs and
commodity-based tariffs constitute
that a TSO
charges
for providing
via which
a TSO derives
to which a TSO
applies
Figure 6: Definitions: cycle of transmission services revenue, tariffs and services
TSO’s revenue and tariffs
Figure 5 illustrates the link between the TSO’s allowed/target revenue and different
applicable tariffs. An asterisk indicates that Article 3 defines the given term.
Green indicates the allowed/target revenue, which is the sum of the transmission
services revenue indicated in grey, and the non-transmission services revenue in
yellow.
The transmission services revenue splits into a ‘capacity’ part indicated in purple,
and a ‘commodity’ part in blue. The RPM only applies to the ‘capacity’ part of the
transmission services revenue, to derive a reference price for each entry point and
for each exit point. These reference prices, which are explained further below, then
provide the basis for capacity-based transmission tariffs. The TAR NC does not
require any specific methodology that applies to the ‘commodity’ part of the trans-
mission services revenue; the sole requirement is for periodic consultation. Without
specifying a methodology, Article 4(3) sets out specific requirements for commodi-
ty tariffs, as also explained further below.
Turning to the non-transmission services revenue in yellow, different methodologies
may apply depending on the particular non-transmission service. Again, the TAR NC
does not require any specific methodology; the sole requirement is for periodic
consultation1). Without specifying a methodology, Article 4(4) sets out specific
requirements for non-transmission tariffs, as explained further below.
For the transmission services revenue, Figure 6 explains the cycle of: (1) applying
the RPM to a TSO’s transmission services revenue; (2) deriving reference prices for
all points on the transmission network; (3) setting capacity-based transmission
tariffs; (4) charging such capacity-based transmission tariffs and commodity-based
transmission tariffs for the transmission services; and (5) providing such services to
recover the transmission services revenue. A similar cycle also applies to non-trans-
mission services revenue.
1) See – content of the document for periodic consultation
and comparison to