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TAR NC Implementation Document – Second Edition September 2017 |
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Binding reserve prices ‘beyond the subsequent gas year’ for
fixed payable price approach
Article 3(23) defines a fixed payable price as a reserve price not subject to any
adjustments other than indexation. A fixed payable price is consistent with Article
12, which allows the prices published in accordance with Article 29 to remain bind-
ing beyond the subsequent gas year. Anyone purchasing a yearly capacity product
over consecutive years at the same time at a fixed price, pays the same reserve price
indexed from one year to another for every year of the booked capacity, this is there-
fore the binding price. Please see Annex H for examples.
Exception: recalculation of discounts for monthly and daily
interruptible products
The TAR NC permits the recalculation of discounts for interruptible monthly and
daily standard capacity products within a tariff period. Recalculation can occur if the
probability of interruption changes by more than 20%. ENTSOG received stakehold-
er feedback and agrees that such change in the probability of interruption should
not be in relative but in absolute terms
1)
. The intention is not to dis-incentivise the
accurate forecasting of interruptible capacity sales, but merely to provide a safe-
guard enabling TSOs/NRAs to adapt to changing conditions. The updated transmis-
sion tariffs are subject to NRA approval.
Exception: update of reference prices
The TAR NC permits recalculation of the reference price within the tariff period in
exceptional cases subject to the NRA approval. Recalculation can protect the TSO
if, for example, tariffs were initially calculated based on forecasted contracted
capacity and on forecasted flows that significantly exceed the actual demand
witnessed within the tariff period due to for example an exceptionally mild winter,
and if the mismatch is expected to persist for the rest of the tariff period.
Other examples of ‘exceptional cases’ warranting a mid-period update could be legal
changes, such as new legislation or a court decision, or else imminent bankruptcy
or the material credit downgrading of a TSO. This list of exceptional cases has been
clarified based on feedback received from stakeholders.
1) The 20% probability of interruption figure which triggers a recalculation should be an absolute figure not a relative one
i. e. if the probability increased from 10% to 31% (21% absolute) a recalculation should be permitted, but not if it in-
creases from 10% to 12.5% (25% relative). Using the absolute figure ensures that the change in tariffs is justified due
to a significant change in the probability of interruption.