39 / 272
TAR NC Implementation Document – Second Edition September 2017 |
39
NON-PRICE CAP AND PRICE CAP REGIMES
Responsibility: subject to national decision based on Article 41(6)(a) of the Gas
Directive
Without going into the details on setting the regulatory regime, the TAR NC splits all
the regulatory regimes into two categories: price cap and non-price cap. The main
difference between the two is reflected in what is set: (1) the maximum transmission
tariff based on revenue for a price cap regime; or (2) the revenue for a non-price cap
regime. Therefore, the concept of ‘target revenue’ is related to the price cap regime,
while the concept of ‘allowed revenue’ is pertinent to the non-price cap regime.
Figure 8 explains this difference.
The TAR NC provides a non-exhaustive list of examples of non-price cap regimes in
its definition: revenue cap, rate of return and cost plus. Also, the TAR NC allows for
a given TSO to function under both price cap and non-price cap regimes. As of
September 2017, the majority of the EU TSOs function under the non-price cap
regime. For example, a combination of price cap and non-price cap regimes applies
in the Czech Republic and Italy, and the price cap regime applies in Slovakia.
ARTICLE 3(3)
AND 3(17)
reference price
auction per CAM NC
yearly product
non-yearly products
auction not per
CAM NC or no auction
= proportion of reference price
x M x SF
= reference price x
(1 - discount)
= reference price
different prices for
different products
price applicable
at non-IPs
reserve price
rest of non-IPs
reference price equals the price for
firm capacity product with a
duration of 1 year
reference price
is used to derive
reserve prices
interruptible
interruptible
firm
firm
Figure 7:
Definitions: reference prices and capacity-based transmission tariffs
all IPs + some non-IPs
if CAM and TAR NC apply
Note:
M
– multiplier for a non-yearly
product
SF
– optional seasonal factor for a
non-yearly product
*
ex-post discount: interruptible
reserve price equals firm reserve
price; compensation is calculated
per Article 16(4) in case of
interruption
ex-ante
ex-ante
ex-post*
ex-post*
= proportion of reference price
x M x SF x (1 - discount)