This document discusses gas transmission tariffs across Europe and their effects on wholesale gas market development. It finds that tariff levels vary significantly between countries due to different regulatory approaches. Higher tariffs can deter cross-border trade and influence price spreads between hubs. However, the actual impact on prices depends on other market fundamentals as well. Looking ahead, tariff levels may evolve differently depending on factors like infrastructure investment needs and contract expirations. Proposals to reform tariff structures aim to further encourage competition and price convergence.
Presentación que tuvo lugar en el Seminario "El funcionamiento de los mercados mayoristas y minoristas del gas y la electricidad a nivel europeo", organizado conjuntamente por Funseam y Aelec. 09/19
Jiri Horak of CEZ discussed the experiences of market liberalisation in Romania and Czech Republic and how the market should accordingly be opened in Bulgaria
Electricity Markets Regulation - Lesson 2 - Market DesignLeonardo ENERGY
This section explains the main properties of different types of electricity markets exhibiting different level of competition and different forms of organisation.
• General market models : vertically integrated companies / single buyer / wholesale competition / retail competition
• Power pools : Price based / Cost based
• Markets with bilateral trade
• Balancing markets
• Power exchanges
Presentación que tuvo lugar en el Seminario "El funcionamiento de los mercados mayoristas y minoristas del gas y la electricidad a nivel europeo", organizado conjuntamente por Funseam y Aelec. 09/19
Jiri Horak of CEZ discussed the experiences of market liberalisation in Romania and Czech Republic and how the market should accordingly be opened in Bulgaria
Electricity Markets Regulation - Lesson 2 - Market DesignLeonardo ENERGY
This section explains the main properties of different types of electricity markets exhibiting different level of competition and different forms of organisation.
• General market models : vertically integrated companies / single buyer / wholesale competition / retail competition
• Power pools : Price based / Cost based
• Markets with bilateral trade
• Balancing markets
• Power exchanges
Electricity Markets and Principle Market Design ModelsLeonardo ENERGY
Highlights:
* Explains the various market design possibilities.
* Discusses Single Buyer or Electricity Markets with Wholesale Competition.
* Provides a view about Pool versus Bilateral Trading, Intra-day * Trading and Balancing Mechanisms.
* Presents Supplementary Capacity Schemes.
Electricity Markets Regulation - Lesson 8 - PricingLeonardo ENERGY
Once the revenue requirements are established they should be converted into tariff systems. This session explains the major economic principles of electricity pricing and the general pricing models using average and marginal costs. Moreover the session explores the major pricing models for the electricity activities including: generation, transmission, distribution and retail activities.
* Pricing principles : economic efficiency - cost recovery
* General pricing models : average cost pricing - marginal cost pricing
* Cost allocation issue
* Pricing for different activities in the electricity industry : generation pricing - transmission pricing - distribution pricing - retail supply pricing
Internal electricity market (dir 2009/72/EC) and progress reports on internal...Leonardo ENERGY
The third package of energy liberalization has set up the milestone of completion of internal energy market (IEM) by year 2014, for both gas and electricity. In order to do so, targets were established and rules and process specified in order to achieve the targets. The lecture will explore the definition, meaning, content and perspectives of the internal energy market target for the power sector, focusing on the requirements set up by directive 2009/72/EC and on the monitoring activity to fulfil it.
Assessment of Offshore Transmission Tender Round 1 benefits (2014)CEPA Ltd
Ofgem has published their conclusions on the consultation relating to the evaluation of Offshore Transmission Owners (OFTO) Tender Round One (TR1). The consultation was based on a report by CEPA and BDO which assessed the benefits that TR1 may have created. Ofgem’s conclusions paper followed a workshop where CEPA presented the report to stakeholders and comments on the report were subsequently fed back to Ofgem.
Electricity Markets and Principle Market Design ModelsLeonardo ENERGY
Highlights:
* Explains the various market design possibilities.
* Discusses Single Buyer or Electricity Markets with Wholesale Competition.
* Provides a view about Pool versus Bilateral Trading, Intra-day * Trading and Balancing Mechanisms.
* Presents Supplementary Capacity Schemes.
Electricity Markets Regulation - Lesson 8 - PricingLeonardo ENERGY
Once the revenue requirements are established they should be converted into tariff systems. This session explains the major economic principles of electricity pricing and the general pricing models using average and marginal costs. Moreover the session explores the major pricing models for the electricity activities including: generation, transmission, distribution and retail activities.
* Pricing principles : economic efficiency - cost recovery
* General pricing models : average cost pricing - marginal cost pricing
* Cost allocation issue
* Pricing for different activities in the electricity industry : generation pricing - transmission pricing - distribution pricing - retail supply pricing
Internal electricity market (dir 2009/72/EC) and progress reports on internal...Leonardo ENERGY
The third package of energy liberalization has set up the milestone of completion of internal energy market (IEM) by year 2014, for both gas and electricity. In order to do so, targets were established and rules and process specified in order to achieve the targets. The lecture will explore the definition, meaning, content and perspectives of the internal energy market target for the power sector, focusing on the requirements set up by directive 2009/72/EC and on the monitoring activity to fulfil it.
Assessment of Offshore Transmission Tender Round 1 benefits (2014)CEPA Ltd
Ofgem has published their conclusions on the consultation relating to the evaluation of Offshore Transmission Owners (OFTO) Tender Round One (TR1). The consultation was based on a report by CEPA and BDO which assessed the benefits that TR1 may have created. Ofgem’s conclusions paper followed a workshop where CEPA presented the report to stakeholders and comments on the report were subsequently fed back to Ofgem.
Eca insight 1.21 price spikes in greeces new electricity marketGail Gibson
On 1 November 2020 Greece reached a significant
milestone by launching the European Target Model
for the operation of its wholesale electricity market.
Initial implementation was reported as being
successful.
Insight authored by John Paparistodemou, ECA
Watch the video accompanying these slides at http://www.policyexchange.org.uk/modevents/item/the-future-of-the-ets-in-europe-s-climate-strategy
Slides from the German Institute for Economic Research's Dr Karsten Neuhoff. Presented at Policy Exchange's event "The future of the ETS in Europe’s climate strategy"
This technical and macro-economic study focuses on light duty vehicles -- cars and vans. It has been advised by a broad group of stakeholders in the move to low-carbon transport, including auto producers, technology suppliers, labour groups, energy providers and environmental groups. The resulting fact-base is anticipated to serve as a reference point for discussions around the low-carbon transition.
The model results show that a shift to low-carbon cars and vans increases spending on vehicle technology, a sector in which Europe excels, therefore generating positive direct employment impacts. This shift will also reduce the total cost of running Europe’s auto fleet, leading to mildly positive economic impacts including indirect employment gains.
The analysis showed that a shift to low-carbon vehicles would increase spending on vehicle technology, therefore generating positive direct employment impacts, but potentially adding €1,000-€1,100 to the capital cost of the average new car in 2020. However, these additional technology costs would be offset by fuel savings of around €400 per year, indicating an effective break-even point for drivers of approximately three
years. At the EU level, the cost of running and maintaining the European car fleet would become €33-35 billion lower each year than in a “do nothing scenario” by 2030, leading to positive economic impacts including indirect employment gains.
Незважаючи на те, що поняття “енергетичної бідності” (energy poverty) не має визначеної кваліфікації у правовому полі ЄС, проблема, з якою її зазвичай асоціюють, присутня у кожній з країн-членів.
В Україні поняття енергетичної бідності так само не є формалізованим і сталим, однак саме явище, на жаль, від цього не менш нагальне. Численні соціологічні опитування засвідчують, що оплата комунальних платежів, включаючи послуги з центрального опалення, постачання газу та електроенергії, є істотною проблемою для більшості населення країни, а отримувачі субсидій на оплату житлово-комунальних послуг на початок 2019 року складали приголомшливі 65% домогосподарств.
Робота також містить практичні рекомендації щодо вдосконалення системи соціального захисту проти енергетичної бідності в Україні. Зокрема, експерти радять врегулювати поняття «вразливих споживачів» на законодавчому рівні та сформувати цілісну концепцію боротьби з енергетичною бідністю.
Ця публікація була розроблена за сприяння Європейського Союзу в рамках Ініціативи EU4Energy та за підтримки Міжнародного фонду «Відродження» у рамках Проекту “Збільшення впливу ромадянського суспільства у моніторингу та політичному діалозі щодо реформ в енергетиці та суміжних секторах відповідно до імплементації Угоди про Асоціацію”.
За зміст цієї публікації несуть відповідальність Громадська організація «ДІКСІ ГРУП», а також Громадянська мережа «ОПОРА», Всеукраїнська громадська організація «Енергетична Асоціація України», Ресурсно-аналітичний центр «Суспільство і довкілля», Асоціація «Європейсько-Українське енергетичне агентство». Зміст цієї публікації не жодним чином не відображає точку зору Європейського Союзу та/або Міжнародного фонду «Відродження».
Results of the Quantitative Public Opinion Poll of the USAID Transparent Ener...Денис Киркач
This study was made possible through the support of the American people, provided through the United States Agency for International Development (USAID).
The opinions expressed in this work are solely the responsibility of DiXi Group and in no circumstances may be considered as representing the position of the USAID or the U.S. Government.
Дослідження для проекту USAID «Прозора енергетика» проведено GfK Ukraine з 9 червня до 5 липня 2018 року в усіх регіонах України за винятком Криму та окупованих територій Донецької та Луганської областей. Опитано 3856 респондентів віком від 18 років. Максимально можлива похибка вибірки складає 1,6%. Також проведено 13 глибинних інтерв'ю з представниками експертного і бізнес середовища.
Виконання цього дослідження стало можливим завдяки підтримці американського народу, наданій через Агентство США з міжнародного розвитку (USAID).
Думки, викладені в цій роботі, є виключною відповідальністю DiXi Group і за жодних обставин не можуть розглядатися як такі, що відображають позицію USAID чи Уряду США.
20 грудня на голосування в першому читанні у ВРУ виноситься законопроект 8449-д («Про внесення змін до деяких законодавчих актів України відносно забезпечення конкурентних умов виробництва електричної енергії з альтернативних джерел енергії»).
Нагадаємо, що 4 грудня 2018 року доопрацьований законопроект 8449-д було схвалено Комітетом з питань ПЕК – з рекомендацією прийняти його за основу.
This publication has been produced with the assistance of the European Union in the framework of the EU4Energy Initiative and with the support of the International Renaissance Foundation. The contents of this publication are the sole responsibility of NGO "DIXI GROUP", as well as Civil Network "OPORA", All-Ukrainian NGO
"Energy Association of Ukraine", Resource & Analysis Center "Society and Environment", Association "European-Ukrainian Energy Agency", and can under no circumstances be regarded as reflecting the position of the European Union and/or the International Renaissance Foundation.
The publication is also issued within the framework of the Think Tank Development Initiative in Ukraine, implemented by the International Renaissance Foundation in partnership with the Open Society Initiative for Europe (OSIFE) with the financial support of the Embassy of Sweden to Ukraine. The contents of this publication are the sole responsibility of NGO "DiXi Group" and do not necessarily reflect the position of the Embassy of Sweden in Ukraine, International Renaissance Foundation and Open Society Initiative for Europe (OSIFE)
This publication has been produced with the assistance of the European Union in
the framework of the EU4Energy Initiative and with the support of the International
Renaissance Foundation. The contents of this publication are the sole responsibility
of NGO "DIXI GROUP", as well as Civil Network "OPORA", All-Ukrainian NGO
"Energy Association of Ukraine", Resource & Analysis Center "Society and Environment",
Association "European-Ukrainian Energy Agency", and can under no
circumstances be regarded as reflecting the position of the European Union and/or
the International Renaissance Foundation.
The publication is also issued within the framework of the Think Tank Development
Initiative in Ukraine, implemented by the International Renaissance Foundation in
partnership with the Open Society Initiative for Europe (OSIFE) with the financial
support of the Embassy of Sweden to Ukraine. The contents of this publication are
the sole responsibility of NGO "DiXi Group" and do not necessarily reflect the
position of the Embassy of Sweden in Ukraine, International Renaissance Foundation
and Open Society Initiative for Europe (OSIFE).
On Sunday, November 25, 2018, Russia has seized three Ukrainian naval ships off the coast of Russia-annexed Crimea. After ramming into, fire was opened on Ukrainian ships, as the result of which six sailors were wounded, and all crew members – as reported, 24 persons - were taken as prisoners of war.
DiXi Group prepared the infographics about the Law 6229 ‘On ensuring transparency in extractive industries’. The main purpose of infographics is to tell about how this law works briefly and accessibly.
This Law defines the legal framework for the regulation and organization of
collection, disclosure, and dissemination of information to ensure transparency and
corruption prevention in extractive industries in Ukraine.
This Law is aimed at fulfilling Ukraine’s international obligations concerning its
accession to the Extractive Industries Transparency Initiative (EITI) and implementing
the European Union’s legislative acts with respect to increasing business transparency
in extractive industries, namely Directive 2013/34/EU of the European Parliament and
of the Council on the annual financial statements, consolidated financial statements
and related reports of certain types of undertakings, amending Directive 2006/43/
EC of the European Parliament and of the Council and repealing Council Directives
78/660/EEC and 83/349/EEC, and Directive 2013/50/EU of the European Parliament
and of the Council amending Directive 2004/109/EC of the European Parliament
and of the Council on the harmonization of transparency requirements in relation to
information about issuers whose securities are admitted to trading on a regulated
market, Directive 2003/71/EC of the European Parliament and of the Council on the
prospectus to be published when securities are offered to the public or admitted to
trading and Commission Directive 2007/14/EC laying down detailed rules for the
implementation of certain provisions of Directive 2004/109/EC.
DiXi Group підготувала серію інфографік за мотивами Закону «Про забезпечення прозорості у видобувних галузях». Їх завданням є донести до якомога більшої частини населення основні положення нормативно-правового акту.
Нагадаємо, що Закон «Про забезпечення прозорості у видобувних галузях» було прийнято 18 вересня 2018 року.
On June 7, 2018, Members of Parliament Oleksandr Dombrovsky and Lev Pidlysetskii submitted a draft law "On Amendments to the Laws of Ukraine on Ensuring Competitive Conditions for the Production of Electricity from Alternative Energy Sources" (No. 8449).
During the next two weeks seven more alternative bills of authorship of various parliamentary groups were introduced to parliament, some of the parliamentarians signed up to more than one text. 5 draft laws unite deputies from different political factions, and 3 others - with sole authorship. The authors of 7 of the 8 bills propose the introduction of state support for RES on the basis of auctions.
The details for a new state support scheme were discussed in August-September 2018 within several working groups, with active involvement of DiXi Group analysts. After the discussion process stalled, several industry associations signed a joint memorandum on 30th of October on key positions they support to be stipulated in the new Law.
The DiXi Group experts analyzed all draft laws and changes proposed by the parliamentarians. The analytical report describes the positive aspects of the bills, identifies the potential risks and contains suggestions on how to reduce them.
The publication is issued within the framework of the Think Tank Development Initiative for Ukraine, implemented by the International Renaissance Foundation in partnership with the Open Society Initiative for Europe (OSIFE) with the fnancial support of the Embassy of Sweden to Ukraine.
Методичні рекомендації для проведення аудиту даних державних органів владиДенис Киркач
Експерти DiXi Group починаючи з осені 2017 року, в рамках аудиту даних Міненерговугілля, допомагають фахівцям відомства з організацією збору і оприлюдненням даних у форматі відкритих даних (open data). З наборами даних можна ознайомитись на Порталі відкритих даних або на веб-порталі Міненерговугілля.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
tew (09.10.18) - Garcia
1. Energy Community SecretariatEnergy Community Secretariat
Effects of transmission tariffs to wholesale
market development in the EU
Joaquin Garcia
Gas Market Monitoring Officer
ACER
2. Energy Community SecretariatEnergy Community Secretariat 2
Index
1. What’s the level of gas transmission tariffs across Europe?
2. How do transmission tariffs effect on market development? – focus on
prices
3. Some reflections about the future
3. Energy Community SecretariatEnergy Community Secretariat 3
What’s the level of gas transmission tariffs in Europe?
Source: ACER calculations in collaboration with ENTSOG and TSOs
➢ European cross-border tariffs are quite diverse as they result from differing
regulatory choices and network cost factors
e.g. valuation of the regulatory asset base, rates of return, tariff methodologies
e.g. network size, configuration, capacity, topology, density
Benchmark of European average gas cross-border transportation tariffs – April 2018 - euros/MWh
4. Energy Community SecretariatEnergy Community Secretariat 4
What’s the level of gas transmission tariffs in Europe?
Source: ACER calculations in collaboration with ENTSOG and TSOs
As far as tariffs are transparent, cost-reflective and efficient their actual levels shall not be a concern
Tariff levels at a selection of EU borders – 2017 - euros/MWh
10-15% final commodity price
<3% final commodity price
5. Energy Community SecretariatEnergy Community Secretariat
How do transmission tariffs effect on prices?
➢ Tariffs are a key element driving IPs utilisation. They:
• can promote or deter market access from a given origin
> This influences the competitive framework for price formation
• can add-up on final MSs sourcing cost via pancaking of supply-route tariffs*
• can be pivotal in hub price-spread formation
➢ However, concrete IP tariff effects on prices may vary in accordance to the distinct
markets’ conditions and players’ strategies. It is important to look at aspects as:
• Marginal price setter at each given market
• Number and type of active suppliers
• Suppliers’ possible determination to lower supply-price margins to compete in
– e.g. final supply prices not adding-up tariffs entirely
*arguably, particularly when tariffs methodologies diverge or are not reflective
6. Energy Community SecretariatEnergy Community Secretariat
How do transmission tariffs effect on prices?
2017 supplier’ gas sourcing cost at EU MSs - euros/MWh
Setting the scene of MSs
sourcing costs
Declining price differentials across MSs
suggest that:
• Most regions are benefiting from fiercer
supply-side competition.
• The development of the hub model plus
sufficient IP capacity is backing stronger
price convergence
• LNG sets marginal prices in many
markets, whereas major pipe producers
aim retaining market share via lowering
margins and orienting sellings into hubs
Gas sourcing via hubs is generally more
competitive. Non-hub indexed LTCs are
more exposed to non-gas fundamentals
Source: ACER based on Eurostat Comext, Platts, and NRAs
7. Energy Community SecretariatEnergy Community Secretariat
Setting the scene of hub price spreads
• Price convergence between EU hubs continues to advance. Dissimilar levels among regions persist yet
• Upstreamers selling gas at distinct hubs at differences below transmission tariffs assist convergence. E.g. Equinor at NWE
• Contracting surpluses assist convergence; as those constitute sunk costs inter-hub arbitrage trade takes place around
short run marginal costs
• Transportation costs, linked to physical distance can influence price differences, particularly when the specific IP sets the
marginal market price – e.g TTF into Italy
Analysis of DA price convergence and price correlation levels among selected EU hubs – 2015 - 2017
How do transmission tariffs effect on prices?
Source: ACER based on Platts and ICIS Heren. Notes: Spreads in euros/MWh are calculated as the absolute
price differential between pairs of hubs, independent of discount or premium
8. Energy Community SecretariatEnergy Community Secretariat
Tariffs are a pivotal price signalling factor for hub price spread formation. The type of
direction may be dissimilar among hub pairs in accordance to markets’ specifics
Price spreads rarely exceed
tariffs between hubs in NWE.
Tariffs tend to be a defacto
ceiling around which arbitrage
trading occurs. SRMCs, direct
access of common suppliers and
the determination of others to
compete in price seem to
determine actual spreads
Day-ahead price convergence levels in selected EU hubs compared to yearly transmission tariffs – 2017
Hub pairs where spreads were
higher than tariffs tend to include
those with lower liquidity or may
indicate capacity constraints at
IPs
DA tariffs are higher than yearly
ones limiting arbitrage
opportunities on the spot at
some markets
How do transmission tariffs effect on prices?
Source: ACER based on Platts and hub operators’ data for prices and ENTSOG TP for transportation tariffs.
9. Energy Community SecretariatEnergy Community Secretariat
Tariffs are a pivotal price signalling factor for hub price spread formation -> A different
way of presenting a similar analysis
Day- ahead price spreads compared to yearly transportation tariffs – 2017
How do transmission tariffs effect on prices?
Source: ACER based on Platts and hub operators’ data for prices and ENTSOG TP for transportation tariffs.
10. Energy Community SecretariatEnergy Community Secretariat
➢ The EU gas sector is shifting towards shorter-term capacity and commodity contracting
terms. This trend entails further hub-orientation and more profiled capacity bookings. NCs
are playing a part in this.
➢ A number of opposing elements could drive the evolution of IP tariffs along next years:
(-) The maturity of the European transportation systems could reduce the need for infrastructure
expansion and result in lower tariffs
(+) Declining demand and reduced bookings after the expiration of LTCs could increase tariff levels
➢ The implementation of the TAR NC could alter tariff levels at selected IPs affecting the
direction of EU flows.
➢ Some tariff framework reorganization proposals are being studied:
e.g. Quo Vadis: Suggestion of applying harmonised tariffs in all into-EU entry points, and the setting of all within-EU IPs reserve prices to
zero. This could encourage supply competition and regional price convergence. The proposal would be accompanied by a new inter-TSO
compensation fund to secure revenue recovery neutrality
Some reflections about the future
11. Energy Community SecretariatEnergy Community SecretariatSource: ACER calculations in collaboration with ENTSOG and TSOs
Thank you for your attention
See MMR 2017:
https://www.acer.europa.eu/en/Electricity/Market%20monitoring/Pages/Curre
nt-edition.aspx
See ACER analyses of tariffs consultations:
http://www.acer.europa.eu/en/Gas/Framework%20guidelines_and_network%2
0codes/Pages/Harmonised-transmission-tariff-structures.aspx
13. Energy Community SecretariatEnergy Community Secretariat
Current state of gas hub development
Source: ACER
Note: Assessment made based on AGTM and other metrics
2017 EU gas hubs categorization on the basis of AGTM metrics
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