Peak Supply

In the ‘Besluit Leveringszekerheid Gas’ it is stated that Gasunie Transport Services (GTS) is responsible for the services of Peak Supply. This implies that GTS accommodates the gas transport and the gas transport capacity to Suppliers that is needed to supply small consumers (G1A and G2A) at temperatures below -9°C.

For the service of Peak Supply, GTS calculates the required plancapacity 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 small consumers (in these winter months) in proportion to their market share in the small consumer 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 2020 58 kB 03 Jan 2020
Calculation tool peak capacity and costs 2019 115 kB 22 Oct 2019
Peak Supply Tariff 2020 142 kB 17 Dec 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 2020

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 18.0 mio. euro in total for the year 2020.

Cost peak production LNG Peakshaver 2020 In € mln.
Capital expenditures 3.3
Asset base 100.7
WACC 3.2%
Depreciation cost 4.5
Operational expenditures 6.8
Energy cost 3.4
Total cost 2020 18.0

In addition to the cost for peak production of the LNG Peakshaver there are other tariff components, most important being the costs of the capacity purchased through a tender and the cost related to entry transport capacity. The cost for the other tariff components amount 17.7 mio. euro. Thus, the total cost amount to 35.7 mio. euro for year 2020, of which 22.8 mio. euro for production and 12.9 mio. euro for transport. In 2019 the total cost were 36.7 mio. euro, of which 11.0 mio. euro for production and 25.7 mio. euro for transport.

From 2020, GTS will no longer (afterwards) split the costs charged by the tender parties into costs for production capacity and costs for entry transport capacity. As a result the costs for production capacity has almost doubled in 2020 compared to 2019. On the other hand, the costs for entry transport capacity has almost been halved. This shift is only a cosmetic change that does not affect the total costs for peak delivery.

The peak supply tariff for production in 2020 is 1.037 €/kWh/h/y. The peak supply tariff for entry capacity in 2020 differs per winter month and amounts 0.212 €/kWh/h/m for January, 0.185 €/kWh/h/m for February and 0.190 €/kWh/h/m for December. The peak supply tariff for exit capacity with regard to the local distribution exit-points follows directly from the tariff decision 2020.

* 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 0.1% 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 (‘Gewijzigd Methodebesluit GTS 2017-2021’).