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TAR NC Implementation Document – Second Edition September 2017
Cost Allocation Assessments
ARTICLE 5 COST ALLOCATION ASSESSMENTS
Responsibility: subject to consultation per Article 26(1) by TSO/NRA, as NRA
decides; subject to decision by NRA, a deviation above 10% threshold needs to
be justified by the NRA in the decision
General
As part of the periodic consultation
1)
, NRAs will decide whether TSOs or NRAs
performup to two assessments to comply with the principle of avoiding cross-subsidies
between network uses. One assessment is for
capacity charges
, the other, if any, is
for
commodity charges
. These assessments help indicate the cost-reflectivity of
proposed tariffs based on the cost drivers set out in Article 5(1). The assessments
involve calculations that may be based on forecasted revenues, bookings, flows and
cost drivers, potentially based on historical data.
1) See
Chapter VII ‘Consultations requirements’, Section ‘Article 26(1)– content of the document for periodic consultation
and comparison to
Chapter VIII ‘Publication requirements’.Pipeline
Cross-system network use
Cross-system network use
Entry-exit system
Intra-system
network use
Intra-system
network use
Figure 11:
Basis for performing cost allocation assessments