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TAR NC Implementation Document – Second Edition September 2017

How to use the Chapter for non-transmission services

Chapter IV applies to transmission services by default, and therefore to transmission

services revenue and transmission tariffs. All the rules of the Chapter ‘work’ only for

one part of the TSO services.

However, Article 17(3) provides the option of extending such rules also to non-trans-

mission services,

‘mutatis mutandis’

. The TAR NC is silent on how exactly to custom-

ise the rules for extension to non-transmission services revenue. Instead, there is an

obligation – as part of the periodic consultation set out in Article 26 – to consult on

the way to reconcile non-transmission services revenue. In any case, the principles

established by Article 13 of the Gas Regulation apply.

As explained below, TSOs can have only one regulatory account. Following Article

17(3), these are possible approaches for non-transmission services reconciliation

that need further investigation:

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If the non-transmission services revenue is reconciled under the Chapter’s

rules, then the TSO must log the under-/over-recovery from such services onto

the one regulatory account. There are two suggestions:

One regulatory account should be split into sub-accounts for recording and

reconciling the under-/over-recovery from transmission services and, sepa-

rately, from non-transmission services. ‘Sub-accounts’ are an option under

Article 30(1)(b)(vi) where and to the extent that the TSO functions under a

non-price cap regime.

One regulatory account is used for recording and reconciling together the

under-/over-recovery from transmission services and from non-transmission

services. This is the current approach in Germany and in France.

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In case the non-transmission services revenue is reconciled pursuant to other

rules than under the Chapter, the under-/over-recovery from such services may

be logged on to some other account than ‘one regulatory account’. Great Britain

currently follows this approach.

The approaches described above are ENTSOG’s examples of what could be done.

The NRA must decide how to reconcile non-transmission services revenue in a

given system. Article 19(2) permits the NRA to enact

‘other rules’

in accordance with

the Gas Directive.

UNDER-/OVER-RECOVERY

Responsibility: no implications for TSO/NRA responsibility

Article 18 addresses under-/over-recovery of the value of the allowed revenue for a

given tariff period. The under-/over-recovery is calculated not for all the TSO’s

allowed revenue but only for the portion corresponding to the provision of transmis-

sion services.

The under-/over-recovery is the difference between: (1) the amount R which repre-

sents the allowed transmission services revenue; and (2) the amount R

A

which is

actually collected revenue by the TSO. Both R and R

A

must relate to the same tariff

period. If the difference R

A

–R is positive, there is an over-recovery. If the difference

is negative, there is an under-recovery.

When calculating the under-/over-recovery of a given TSO, the ITC payments have

to be taken into account in multi-TSO entry-exit systems within a MS.

ARTICLE 18