ENTSOG Tariff NC - Implementation Document 2nd Edition

TAR NC Implementation Document – Second Edition September 2017 |

All three scenarios in Table 6 require NRA consultation on the principles of an

effective ITC mechanism and its consequences on the tariff level. As explained in

Part 2, such a consultation must be conducted simultaneously with the final

TSO/NRA consultation under Article 26(1), and with the NRA consultation on

multipliers, seasonal factors and discounts under Article 27. The relevant NRA must

publish the consultation responses on ITC consultation as well as the NRA decision

on the ITC mechanism adopted. Per ENTSOG’s estimation, publication should occur

simultaneously with NRA decisions on the other two consultations

For ‘same separately’ and ‘different separately’ in Table 6, the TAR NC sets out

certain additional process compliance requirements not shown in the table. Under

Article 10(4) the NRA can permit separate application of the RPM for an initial

period of up to five years from the AD 1, which is the TAR NC’s entry into force

ENTSOG believes that the five-year limit could reflect the need to conduct periodic

consultations under Article 26 at least every five years. As the NRA’s initially allowed

time period approaches expiration, the NRA may decide to extend the period,

‘sufficiently in advance’ of the expiration date.

What an inter-TSO compensation mechanism is

As an example, an ‘A-to-B’ ITC may indicate that TSO A transfers a certain amount

of money directly to TSO B. TSO A should actually obtain revenues equal to the

allowed revenue plus compensation for the required ITC transfer; otherwise the

transfer to TSO B would jeopardise revenue recovery. Similarly, TSO B’s allowed

revenues should also consider the ITC transfer. The transfer reduces the revenues

that TSO B will need to earn from its own capacity bookings.

Annex G provides an ITC example.

1) See

Chapter II ‘General timeline’,

Section ‘Multi-TSO entry-exit systems within a MS’.

2) See Section ‘Article 38 – entry into force’.