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TAR NC Implementation Document – Second Edition September 2017 |
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AUCTION PREMIUM
Responsibility: subject to NRA decision
Difference between the regulatory account and ‘specific
separate account’
Article 19(1)–(4) refers to a regulatory account that has a different use than the
‘specific separate account’
referred to in Article 19(5) for any earned auction premi-
um.
The regulatory account is for monitoring any under-/over-recovery of the TSO’s
transmission services revenue, and limiting its financial exposure or reimbursing any
excess recovery to users. In contrast, a specific separate account for an auction
premium facilitates monitoring the TSO’s revenue collected from the marginal price
a network user is willing to pay in addition to the reserve price.
Use of auction premium
A TSO may attribute an auction premium to a specific account separate from the
regulatory account. Alternatively, the auction premium may be attributed to the
regulatory account, in which case it will affect future transmission tariffs.
The NRA can decide how to use the auction premium. Table 9 shows options that
depend on the applicable regulatory regime.
USE OF AUCTION PREMIUM IN DIFFERENT REGULATORY REGIMES
Use of auction premium/Regulatory regime Non-price cap
Price cap
Reduce physical congestion
Yes
Yes
Decrease transmission tariffs
Yes
No
Table 9:
Use of auction premium in different regulatory regimes
ARTICLE 19(5)