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TAR NC Implementation Document – Second Edition September 2017
General Requirements
REFERENCE PRICE METHODOLOGY
APPLICATION
Responsibility: subject to consultation per Article 26(1) by TSO/NRA, as NRA
decides; subject to decision by NRA
Figure 13 shows that the RPM does not apply to all the TSO’s allowed/target revenue
but only to the portion related to the provision of transmission services, and only to
those services involving capacity-based transmission tariffs. Chapter I explained that
a ‘reference price’ derived through the RPM does not constitute a capacity-based
transmission tariff but is only a ‘reference’ for setting such tariffs
1)
. The TAR NC does
not detail any possible RPM except for the CWD counterfactual.
Apart from discounts at certain points, described further below in this Chapter
2)
,
Article 6 allows for three kinds of adjustments to the RPM: benchmarking, equalisa-
tion and rescaling.
\\
Benchmarking implies that the NRA adjusts the reference price at an entry or
exit point so that the resulting values meet the competitive level of reference
prices.
\\
Under equalisation, the TSO or NRA to apply the RPM sets the same reference
price at some or all points of a group sharing the same set of characteristics,
such as LNG points.
\\
Rescaling involves the adjustment of the reference price at some or all entry
and/or exit points, through the application of a constant that can be multiplica-
tive or positive/negative additive.
1) See Chapter 1 ‘General Provisions’, Section ‘Article 3 – definitions’.
2) See Article 9 – discounts at entry-points-from/exit-points-to storage facilities and infrastructure ending the isolation,
and at entry-points-from LNG facilities.
ARTICLE 6
Transmission services
revenue
(only capacity)
Reference price
methodology (RPM)
RPM + a combination of
adjustments
Ú
RPM with adjustments
\\
Article 9 discounts (storage,
LNG and/or ‘isolation’)
\\
Benchmarking
\\
Equalisation
\\
Rescaling
No adjustment
Ú
RPM as is
Figure 13:
Possible components of a RPM