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
Example Peaksupply sheet 106 kB 09 Jan 2017
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 2015 19 kB 23 Dec 2014
Peak Supply Tariffs 2014 18 kB 30 Sep 2014
Peak Supply Tariffs 2013 23 kB 18 Dec 2014

Peak Supply tariffs 2018

The cost relating to the LNG Peakshaver will be input for the determination of the peak production tariff, together with the purchased capacity.

The cost relating to the Peakshaver are calculated based on the method and parameters used for the tariff regulated tasks of GTS, as described in the applicable method decision.* The cost amount to 17.7 mio. Euro in total for the year 2018, as shown in the table below.

Cost peak production Peakshaver 2018 In € mln.
Capital expenditures 3.7
Asset base 98.6
WACC 3.8%
Depreciation cost 4.3
Operational expenditures 6.4
Energy cost 3.2
Total cost 2018 17.7

Together with the other tariff components, such as the capacity purchased through a tender and the cost related to entry transport capacity, this results in a total cost of 37.3 mio. Euro for 2018. In 2017 the total cost amounted 38.3 mio. Euro**, the decrease in 2018 is mainly due to lower cost related to the tender and to the entry transport capacity. In 2017 the entry transport capacity cost were based on the 2016 transport tariffs for two out of three winter months. Therefore, the 2018 entry transport capacity cost have decreased compared to the 2017 cost.

The above results in a peak production tariff of 0.514 €/kWh/h/y and an entry transport tariff of 1.181 €/kWh/h/y for 2018. The exit transport tariff regarding the local distribution exit-points follows from the tariff decision 2018.

* 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. Furthermore, a frontier shift of 0.6% per year is applied on all cost. In addition, the cost will be yearly adjusted by the inflation rate.
The cost will not be settled, except from deviations due to the appeal against the method decision.
** This is the total cost taking into account the one-time downwards correction of the Peak Supply tariffs in the month December 2017, as communicated on 17 November 2017