Peak Supply

As a result of the ‘Besluit leveringszekerheid Gaswet’ from 13 April 2004, GTS has to hold sufficient resources for Peak Supply to suppliers of household customers (category G1A and G2A). Peak Supply applies in case of very cold circumstances, when there is an effective daily temperature lower than -9 ºC in De Bilt.  In this case GTS is responsible for supplying the gas to these suppliers.

For the service of Peak Supply, GTS calculates the required capacity and volume each year. The required amounts are calculated based on historical temperature ranges and consumption in the previous winters on the relevant network points. The transport costs (entry and exit) that GTS reserves for Peak Supply during the winter months December, January and February, will be invoiced to the suppliers of household customers (in these winter months) in proportion to their market share in the household customers segment. The peak production tariff will be invoiced to the suppliers each month of the year, also in proportion to their market share.

Actual Peak Supply       

Actual Peak Supply is the case when the effective daily temperature is below -9 ºC. In this situation, the peak treshold (=winter hourly fraction times the standard year usage) that GTS calculates each month per shipper will be exceeded. When the peak treshold is exceeded, the excess will be allocated back to the shipper via an entry allocation on the Virtual Point Peak Supply. The excess volume that is allocated on this virtual point peak supply will be invoiced to the concerned suppliers in the next month.

The full text of the regulation (only available in Dutch) and an example calculation sheet can be found below.

Regulation Peak Supply 31 kB 13 Jul 2015
Calculation tool peak capacity and costs 2019 115 kB 22 Oct 2019
Peak supply tariffs 2019 80 kB 14 Dec 2018
Peak supply tariffs 2018 81 kB 22 Dec 2017
Peak Supply Tariffs 2017 77 kB 22 Dec 2016
Peak Supply Tariffs 2016 181 kB 08 Dec 2017

Peak Supply tariffs 2019

The peak supply tariff consists of two components: the peak supply tariff for production  and the peak supply tariff for entry capacity. The cost relating to the LNG Peakshaver will be input for the determination of the peak production tariff, together with the capacity purchased through a tender.

The cost relating to the LNG Peakshaver are calculated based on the method and parameters, as described in the method decision.* As shown in the table below, the cost amount to 17.5 mio. Euro in total for the year 2019.

Cost peak production Peakshaver 2019 In € mln.
Capital expenditures 3.5
Asset base 99.2
WACC 3.5%
Depreciation cost 4.3
Operational expenditures 6.4
Energy cost 3.3
Total cost 2019 17.5

In addition to the cost for peak production of the LNG Peakshaver there are other tariff components, such as the capacity purchased through a tender and the cost related to entry transport capacity. The cost for the other tariff components amount 19.2 mio. Euro. Thus, the total cost amount to 36.7 mio. Euro for year 2019. In 2018 the total cost were 37.3 mio. Euro.

The tariff for peak supply is determined by dividing the total cost by the required peak supply capacity (21.98 mio. kWh/h). The tariff for peak supply is 1,670 €/kWh/h/y. The peak supply tariff for production is 0.499 €/kWh/h/y and the peak supply tariff for entry capacity is 1.170 €/kWh/h/y. The peak supply tariff for exit capacity with regard to the local distribution exit-points follows directly from the tariff decision 2019.

* The asset base and deprecation cost are based on the reference year 2015. The operational cost, energy cost (ENF) and the budget for regular expansion investments (RUI) are based on the reference period 2013-2015. The budget for RUI is zero, since there were no regular expansion investments in the reference period. A frontier shift of 0.6% per year is applied on all cost. In addition, the cost are adjusted by the inflation rate each year.
The cost will not be settled, except from deviations due to the appeal against the method decision.