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TAR NC Implementation Document – Second Edition September 2017 |

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PART 1 OVERVIEW OF THE TAR NC REQUIREMENTS �� 28 CITATIONS AND RECITALS 29 Citations ������������������������������������������������������������������������������������������������������������������ 29 Recitals�������������������������������������������������������������������������������������������������������������������� 29 CHAPTER I: GENERAL PROVISIONS������������������ 30 GENERAL CONCEPTS 31 Article 1 Subject matter. 31

Article

2 Scope . 31 Article 3 Definitions. 36

Article 3(3) and 3(17

) Non-price cap and price cap regimes. 39 Article 3(5) and 3(23) R egulatory period and tariff period. 40 Article 3(10) Homogeneous group of points. 42

Article 3(19)

Cluster of entry or exit points . 43 SERVICES AND TARIFFS 44 Article 4 Overview of allowed tariffs. . . . . . . . . . . . . . . . . . . . . . . . . 44

Article 4(1) and 4(4

) Transmission and non-transmission s ervices and tariffs . 45

Article 4(2

) Transmission tariffs for firm capacity products with ‘conditions’ ���������������������������������������������������������������� 47 Article 4(3) Capacity- and commodity-based transmission tariffs. 48 COST ALLOCATION ASSESSMENTS 50 Article 5 Cost allocation assessments. 50 CHAPTER II: REFERENCE PRICE METHODOLOGIES���������������������������������������������� 54 INTRODUCTION 55 Link between revenue, allocation of costs, revenue recovery. 55 GENERAL REQUIREMENTS 56

Article 6

Reference price methodology application. 56

Article 6(4

) Benchmarking, equalisation and rescaling . 57 Article 7 Choice of a reference price methodology . 60

Article

8 Capacity weighted distance reference price methodology. 61

Article 8(1)(b

) Forecasted contracted capacity . 61 Article 8(1)(c) D istance calculation. 62 Article 8(1)(e) E ntry-exit split . 64 ADJUSTMENTS AT CERTAIN POINTS 66 Article 9 Discounts at entry-points-from/exit-points-to storage facilities and infrastructure ending the isolation, and at entry-points-from LNG facilities ������������������������������ 66 MULTI-TSO ENTRY-EXIT SYSTEMS 69

Articles 10 and 1

1 Multi-TSO arrangements. . . . . . . . . . . . . . . . . . . . . . . . . . 69 CHAPTER III: RESERVE PRICES ������������������������ 72 GENERAL REQUIREMENTS 73 Article 12(1) Variability of multipliers, seasonal factors and discounts. 73 Article 12(2) S eparate reserve prices . 74 Article 12(3) B inding reserve prices. 76 Article 13 Level of multipliers and seasonal factors. 78 RESERVE PRICES FOR FIRM CAPACITY PRODUCTS 80 Article 14 Calculation of reserve prices. 80 Article 15 Seasonal factors methodology. . . . . . . . . . . . . . . . . . . . . . 82 RESERVE PRICES FOR INTERRUPTIBLE CAPACITY PRODUCTS 85

Article 1

6 Interruptible discounts. 85