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TAR NC Implementation Document – Second Edition September 2017
ARTICLE 7 CHOICE OF A REFERENCE PRICE
METHODOLOGY
Responsibility: subject to consultation per Article 26(1) by TSO/NRA, as NRA
decides; subject to decision by NRA; ACER analysis of the consultation docu-
ment for Article 7
TSOs/NRAs have to ensure compliance with five principles when evaluating a cer-
tain RPM:
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Reproducibility:
network users should know the methodology to derive tariffs,
should be able to reproduce the tariff calculations and should have the ability
to forecast tariff developments over time.
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Cost-reflectivity:
tariffs should reflect the costs incurred by the TSO.
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Non-discrimination:
means that to the extent possible, TSOs/NRAs, depend-
ing on the entity conducting the final consultation per Article 26(1), should
avoid cross-subsidies where some network users pay for others. The assess-
ments set out for the CAA test the satisfaction of this principle. ENTSOG
received stakeholder feedback highlighting that, whilst the CAA tests the satis-
faction of the cost-reflectivity principle, this is not an exclusive test of whether
the RPM ‘ensures non-discrimination’. CAA checks the non-discrimination only
between the two predefined groups of network users, and there could be other
means to check non-discrimination between other groups of network users.
ENTSOG agrees with this clarification.
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Volume risk management:
one group such as intra-system network users
should not face tariff hikes to compensate for the diminishing use of the network
by another group such as cross-system network users. In Czech Republic, the
‘asset allocation methodology’ is applied to hedge against such volume risk: this
RPM is based on the distribution of assets between two groups of assets, one
operated by a price cap regime to supply cross-system use, the other operated
by a non-price cap regime to supply intra-system use. This approach notably
ensures that intra-system use does not have to make up for insufficient volumes
flowed for cross-system use.
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Non-distortion of cross-border trade
through reference prices implies that
reference prices derived in accordance with RPM should ensure non-distorted
economic signals for cross-border trade.
Enable reproductivity of
tariff calculation and
prevision of future tariffs
Ensure reference prices
do not distort
cross-border trade
Ensure significant volume
risk is not shifted from
cross-system to
intra-system use
Ensure non-discrimination
and prevent undue
cross-subsidisation
(incl. regarding c/a/a)
Take account of actual
costs of using the
transmission network
Figure 15:
Principles for the choice of a RPM