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EU Tariff Network Code
Irina Oshchepkova
Subject Manager, Tariffs – Markets
Implementation status
and monitoring conclusions
Energy Transparency Week, Kyiv
10 October 2018
2
Overview
➢ Implementation timeline
Where we have been
➢ Implementation monitoring
➢ Effect monitoring
Where we are
➢ Consultations
➢ ACER’s reviews
What is ahead of us
➢ ACER’s report on allowed revenues
Agenda
3
Overview:
Implementation timeline
Apr May Aug Sep Oct Nov DecJun
2017
TSO/NRA: publication before
tariff period (Jan-Dec) and
‘early compliance’ publication
Jul
Application date 1
and entry into force
Application date 2
Jan Mar Apr May Aug Sep Oct Nov DecFeb Jun
ENTSOG:
monitoring report
to ACER
TSO/NRA:
publication before
yearly capacity
auctions
TSO/NRA: estimated launch of
final consultation
NRA: estimated launch of
consultation on multipliers,
seasonal factors and discounts
2018
TSO/NRA: publication before
tariff period (other cases)
Jul
Jan Mar Apr May Jul Aug Sep Oct Nov DecFeb
TSO/NRA: publication before
yearly capacity auctions –
based on ‘new’ methodology
Application date 3
NRA: decision on final consultation
(send to ACER and EC) and
on multipliers, seasonal factors
and discounts
Jun
2019
7
Where we have been:
Implementation and effect monitoring
8
➢ Publication and consultation requirements are time
consuming
➢ Need of clear and timely agreement on publication and
consultation responsibility split between TSO and NRA
Implementation monitoring 2017: lessons learnt
9
➢ Indicators used: under-/over-recovery of revenues, tariff
changes, capacity bookings, availability of publications in
English, multipliers
➢ But most indicators are for Chapters applicable only in 2019
Effect monitoring 2017: lessons learnt
10
Where we are:
Consultations
Discounts at
points from/to
infrastructure for
SoS to end
isolation of MS
Information on
revenue,
commodity and
non-transmission
tariffs
Tariff changes
and trends,
tariff model
Fixed payable
price in price cap
regime for existing
capacity
11
Consultation 1
By TSO or NRA, min 5-year cycle (from first completion by May 2019)
Proposed
methodology
Cost
allocation
assessments
Compare tariffs from
proposed
methodology and
from capacity-
weighted distance
Discounts
at points
from/to
storage
Discounts
at points
from LNG
12
By NRA, every tariff period (from first completion by May 2019)
Multipliers
and
seasonal
factors
Discounts at
points from
LNG
Discounts at points
from/to infrastructure
for SoS to end
isolation of MS
Discounts for
interruptible
products
Consultation 2
13
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
NL
SE
RO
NI
PT
DK
SI
PL
PL Yamal
IT
EL
CZ
HU
SK
GB
DE
AT
0 BE
0 BG
EE,FI,LT,LV
HR
IE
ES: tbc
FR
2018 2019
TAR consultation timeline
* Information updated on 17.9.2018
Closed
Closed
Closed
Closed
Open
Open
Open
Open
Open
ACER analysis ✓ACER analysis ✓
NRA carrying out the consultation
TSO carrying out the consultation
1 November 2018
deadline for
launching the
consultation
(counting back
from 31 May 2019)
14
What ACER must analyse
➢ Completeness
➢ Methodology vs criteria
➢ Commodity and non-transmission tariffs vs criteria
What ACER said
➢ Missing structural representation of network (NL)
➢ Missing methodology to forecast bookings, tariff model (SE)
➢ Need to justify postage stamp instead of capacity-weighted
distance (NL, SE)
➢ Welcomes high degree of details (NL)
ACER’s reviews of methodologies
15
What is ahead of us:
ACER’s report on allowed revenues
16
What ACER must do
➢ Report on ‘methodologies and parameters used to determine
the allowed/target revenue of TSOs’
Report content
➢ Description of regulatory framework
➢ Harmonisation often inappropriate (RAB, WACC)
➢ Benchmarking of costs could be useful
Feedback
➢ Stakeholders quite supportive
➢ NRAs sceptical
➢ EC may feed report into studies
➢ No recommendations expected from ACER
Results of September Workshop
Thank You for Your Attention
ENTSOG -- European Network of Transmission System Operators for Gas
Avenue de Cortenbergh 100, B-1000 Brussels
EML:
WWW: www.entsog.eu
Irina Oshchepkova
Subject Manager, Tariffs - Markets
Irina.Oshchepkova@entsog.eu

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tew (09.10.18) - Oshchepkova

  • 1. EU Tariff Network Code Irina Oshchepkova Subject Manager, Tariffs – Markets Implementation status and monitoring conclusions Energy Transparency Week, Kyiv 10 October 2018
  • 2. 2 Overview ➢ Implementation timeline Where we have been ➢ Implementation monitoring ➢ Effect monitoring Where we are ➢ Consultations ➢ ACER’s reviews What is ahead of us ➢ ACER’s report on allowed revenues Agenda
  • 4. Apr May Aug Sep Oct Nov DecJun 2017 TSO/NRA: publication before tariff period (Jan-Dec) and ‘early compliance’ publication Jul Application date 1 and entry into force Application date 2
  • 5. Jan Mar Apr May Aug Sep Oct Nov DecFeb Jun ENTSOG: monitoring report to ACER TSO/NRA: publication before yearly capacity auctions TSO/NRA: estimated launch of final consultation NRA: estimated launch of consultation on multipliers, seasonal factors and discounts 2018 TSO/NRA: publication before tariff period (other cases) Jul
  • 6. Jan Mar Apr May Jul Aug Sep Oct Nov DecFeb TSO/NRA: publication before yearly capacity auctions – based on ‘new’ methodology Application date 3 NRA: decision on final consultation (send to ACER and EC) and on multipliers, seasonal factors and discounts Jun 2019
  • 7. 7 Where we have been: Implementation and effect monitoring
  • 8. 8 ➢ Publication and consultation requirements are time consuming ➢ Need of clear and timely agreement on publication and consultation responsibility split between TSO and NRA Implementation monitoring 2017: lessons learnt
  • 9. 9 ➢ Indicators used: under-/over-recovery of revenues, tariff changes, capacity bookings, availability of publications in English, multipliers ➢ But most indicators are for Chapters applicable only in 2019 Effect monitoring 2017: lessons learnt
  • 11. Discounts at points from/to infrastructure for SoS to end isolation of MS Information on revenue, commodity and non-transmission tariffs Tariff changes and trends, tariff model Fixed payable price in price cap regime for existing capacity 11 Consultation 1 By TSO or NRA, min 5-year cycle (from first completion by May 2019) Proposed methodology Cost allocation assessments Compare tariffs from proposed methodology and from capacity- weighted distance Discounts at points from/to storage Discounts at points from LNG
  • 12. 12 By NRA, every tariff period (from first completion by May 2019) Multipliers and seasonal factors Discounts at points from LNG Discounts at points from/to infrastructure for SoS to end isolation of MS Discounts for interruptible products Consultation 2
  • 13. 13 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May NL SE RO NI PT DK SI PL PL Yamal IT EL CZ HU SK GB DE AT 0 BE 0 BG EE,FI,LT,LV HR IE ES: tbc FR 2018 2019 TAR consultation timeline * Information updated on 17.9.2018 Closed Closed Closed Closed Open Open Open Open Open ACER analysis ✓ACER analysis ✓ NRA carrying out the consultation TSO carrying out the consultation 1 November 2018 deadline for launching the consultation (counting back from 31 May 2019)
  • 14. 14 What ACER must analyse ➢ Completeness ➢ Methodology vs criteria ➢ Commodity and non-transmission tariffs vs criteria What ACER said ➢ Missing structural representation of network (NL) ➢ Missing methodology to forecast bookings, tariff model (SE) ➢ Need to justify postage stamp instead of capacity-weighted distance (NL, SE) ➢ Welcomes high degree of details (NL) ACER’s reviews of methodologies
  • 15. 15 What is ahead of us: ACER’s report on allowed revenues
  • 16. 16 What ACER must do ➢ Report on ‘methodologies and parameters used to determine the allowed/target revenue of TSOs’ Report content ➢ Description of regulatory framework ➢ Harmonisation often inappropriate (RAB, WACC) ➢ Benchmarking of costs could be useful Feedback ➢ Stakeholders quite supportive ➢ NRAs sceptical ➢ EC may feed report into studies ➢ No recommendations expected from ACER Results of September Workshop
  • 17. Thank You for Your Attention ENTSOG -- European Network of Transmission System Operators for Gas Avenue de Cortenbergh 100, B-1000 Brussels EML: WWW: www.entsog.eu Irina Oshchepkova Subject Manager, Tariffs - Markets Irina.Oshchepkova@entsog.eu