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TAR NC Implementation Document – Second Edition September 2017 |
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Reconciliation via a reference price methodology and a
complementary revenue recovery charge
Reconciliation of the regulatory account through use of the applied RPM is an
ex-post process. The TAR NC foresees an option to apply a CRRC at non-IPs. The
example below shows how to use such an option.
The only current approach is in Great Britain where capacity-based transmission
tariffs are set before the tariff period, assuming that all technical capacity will be con-
tracted. Since the actually contracted capacity never coincides with the technical
capacity, the CRRC is then adjusted within the tariff period in order to mitigate any
future under-recovery. The CRRC can be set to zero if there is no under-recovery in
future.
Figure 24 shows the process of revenue reconciliation.
Figure 24:
Process of revenue reconciliation
under-/over-recovery
capacity charge only
capacity charge and, if any, CRRC
…partially put in the
regulatory account
…fully put in the
regulatory account
…used to reduce congestion
(for auction premia that fed
into over-recovery)
and
Under-/over-recovery is taken
into account when calculating
future tariffs per applied RPM
which is reconciled
as follows
at IPs
at non-IPs
…partially met in line with
incentive efficiency schemes