ENTSOG Tariff NC - Implementation Document 2nd Edition

The forecasted contracted capacities are assumed to be strictly positive at all entry and exit points in this example. However, in practice it may happen that the TSO/NRA forecast no contracted capacities for at least one point. Among the most likely reasons, one may indicate a prolonged maintenance at that point expected for all the gas year, or the fact that the point corresponds to incremental capacity and is not yet fully operational. In these cases, the expected absence of contracted capacities means that no capacity or very little capacity is likely to be contracted. With the CWD model presented in this Annex, if no capacity is forecasted to be contracted for at least one point, the calculations will yield an error message. Therefore it would be necessary to amend the database to avoid this case  1) . Such amendments are specific to the model used in this Annex and may not be necessary for more sophisticated tools. Assumptions and constraints on revenues: \\ TSO revenue to be covered by capacity charges supposed to be €1,000, \\ Mandatory value of entry-exit split is 50% as per Article 8(1)(e), \\ TSO entry revenues to recover are therefore 50% of €1,000, i. e. €500, \\ TSO exit revenues to recover are therefore 50% of €1,000, i. e. €500. The next step is to calculate distances between points and then to consider only those which are relevant for a flow scenario, as per Article 8 of CWD counterfactual. The next table presents the results of pipeline route distances between points, on the basis of the network map and taking into account flow scenarios only. This table will be referred to as the ‘Main table’ .

SHORTEST PIPELINE PATH BETWEEN 2 POINTS, WHEN FLOW SCENARIO IS RELEVANT (DISTANCES)

Exit points

Entry points

A

B

C

H

I

K

M N

O

P

R ADen Sum prod Wcen

0.0

0.0

0.0 0.0

A

20.5

13.5 22.5 10.0 9.0 4.2 3.6 15.5

13.40 6491.82 0.8%

0.0 0.0

B 20.5

7.0 12.0 30.5 26.6 16.2 21.2 5.0

19.06

20.0%

C 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

8.2 8.25

0.5%

0.0

0.0

D 13.2 3.2

5.0 10.0 23.2 19.3 8.9 13.9 3.0

11.43

0.7%

E 18.8 12.4 4.1 5.4 14.4 28.8 25.0 14.6 19.6 7.4 12.4 16.59

1.5%

0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0

F 27.5 17.0

14.0 5.0 37.5 33.6 23.2 28.2 12.0

22.28

10.3%

G 7.1 21.9

14.9 23.9 15.8 3.2 5.7 4.1 16.9

13.50

4.2%

0.0

I 22.5 12.0

9.0

32.5 28.6 18.2 23.2 7.0

19.74

0.9%

J 12.5 30.2

23.2 32.2 20.6 14.3 13.9 8.9 25.2

21.64

2.7%

0.0

K 10.0 30.5

23.5 32.5

17.1 14.2 11.7 25.5

23.00

21.3%

L 15.6 33.2

26.2 35.2 23.7 9.8 17.0 12.0 28.2

22.99

10.6%

0.0

M 9.0 26.6

19.6 28.6 17.1

10.4 5.4 21.6

20.20

24.9%

Q 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

5.4 5.39

1.7%

ADex 14.49 25.90 4.12 16.85 23.26 24.34 20.01 14.10 13.40 17.51 7.16

100.0%

Sum Prod 8460.85 Transpose 1

90

2

60

50

40

90

10

50

10

24

Wcex 0.2% 27.6% 0.1% 12.0% 13.7% 11.5% 21.3% 1.7% 7.9% 2.1% 2.0% 100.0%

Table 35: Distance matrix and calculations

 1) Two options are possible to avoid an error message when no contracted capacity is expected: 1) if it is certain to TSO/ NRA that absolutely no capacity will be contracted, remove the specific points and proceed with the calculations at remaining points by adjusting formulas and matrices; 2) if TSO/NRA cannot rule out that some capacity may be contracted, there are three sub-options: a) remove the specific point from calculations, proceed with the calculations at remaining points, and apply tariffs used at a neighbouring point of the same type (entry or exit) to any actual contracted capacity at the point removed from calculations, b) cluster the specific point with a neighbouring point of the same type (entry or exit) which will be used as a reference for calculations, proceed with the calculations at the cluster and the remaining points, and apply tariffs used at the cluster to any capacity actually contracted at the specific point, or c) keep the specific point, and indicate a small positive value for forecasted contracted capacity so as to be hedged against the possibility of limited bookings in practice.

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TAR NC Implementation Document – Second Edition September 2017