GTS submits tariff proposal 2021
On 3 March 2020 we submitted our tariff proposal 2021 to ACM.
In addition, we determined a neutrality charge for 2021. This charge is new compared to previous years and follows from the network code on Balancing. The neutrality charge and the transport tariff together form the all-in tariff for the capacity products of GTS.
Not including the effect of the neutrality charge, the transport tariff increases by 4% compared to 2020. This increase is primarily the result of the changed x-factor decision that causes an incidental tariff increase. This effect is explained below.
Second changed x-factor decision
ACM recently published a second Changed x-factor decision GTS 2017-2021 as a consequence of a CBb court ruling. Because of this, our allowed revenues for the period 2017-2021 increase by EUR 45 mln. According to the Gas Act, this difference must be fully settled in the 2021 tariffs, which leads to a tariff increase of 5%.
Other factors
The tariff increase as a result from decreasing capacity sales, is expected to be limited to 2%. Moreover, reconciliations, corrections, and inflation and x-factor effects result in a tariff decrease of 3%. This means that the transport tariff increases by 4%.
Introduction of a neutrality charge
For the first time a neutrality charge is applied in 2021, in addition to the transport tariff.
This charge follows from the network code on Balancing (NC BAL) and consists of the settlement of the Linepack Flexibility Service (formerly a part of the transport tariff) and incidental balancing costs. The neutrality charge can be both positive and negative.
The neutrality charge for 2021 contains a fee for incidental balancing costs that follow from a case of fraud from December 2018. This incident involved a default of a shipper of approximately EUR 16 mln ¹. The neutrality charge results in an additional tariff increase of 2% in 2021.
This means that the total tariff increase is 6% compared to 2020.
The tariff proposal 2021 and the neutrality charge are further explained in the document below:
| Explanation Tariff proposal GTS 2021 | File extension pdf | File size 875 kB | Date last updated 11 Mar 2024 |
Parties can submit their view to our tariff proposal to ACM within two weeks. ACM will subsequently judge our proposal including the responses and will take a final tariff decision early May 2020. Tariffs for 2021 will then be final.
Regarding the proposed code change that elaborates the neutrality charge, parties can submit their view within six weeks after publication of the concept decision by ACM. Subsequently, ACM will publish a final decision that establishes the calculation of the neutrality charge.
¹ Including tax interest and settlement of the LFS, the charge amounts to approximately EUR 17 mln.