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TAR NC Implementation Document – Second Edition September 2017 |
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Complementary revenue recovery charge
The TAR NC also allows an additional commodity-based transmission tariff at points
other than IPs. This CRRC serves the purpose of managing revenue under- and
over-recovery (for example due to assumptions of capacity sales, applied discounts,
rescaling adjustment). Capacity-based transmission tariffs generate the capacity
part of transmission services revenue, while a commodity-based CRRC can manage
any under-recovery. The CRRC is calculated from the residual amount of revenue to
be recovered and the relevant forecast demands. Where used, the CRRC applies to
the flows of all network users irrespective of their portfolio of capacity products at
points other than IPs. Thus, a CRRC is a price per unit flowed.
NRAs must assess the cost-reflectivity of the CRRC, and the impact of any
cross-subsidisation between IPs and non-IPs. The CAA takes account of the total
transmission service revenue and not just the portion generated by capacity
bookings. As outlined below, CAA relate to the transmission services revenue from
the capacity-based transmission tariffs, and separately to the transmission services
revenue from the commodity-based transmission tariffs. The CRRC affects the
collective results of CAA.
Difference between a flow-based charge and a
complementary revenue recovery charge
Table 3 outlines the difference between the two charges.
COMPARISON BETWEEN A FLOW-BASED CHARGE AND CRRC
Charge
Aim
Which
points
How expressed Calculation
Approval
requirements
Flow-based
charge
Cover the
costs mainly
driven by the
quantity of
the gas flow
All points In monetary
terms or in
kind
On the basis
of forecasted
or historical
flows, or both
Same at all
entry points
and same at
all exit points
Consultation per
Article 26 (1)
CRRC
Managing
revenue
under-/
over-recovery
Non-IPs
In monetary
terms
On the basis
of forecasted
or historical
capacity allo-
cations and
flows, or both
Consultation per
Article 26(1)
NRA assessment
of its cost-reflec-
tivity and its
impact on cross-
subsidisation
between IPs
and non-IPs
Table 3:
Comparison between a flow-based charge and CRRC