GTS Tariff proposal 2020

07 Mar 2019

On March 4th 2019, we submitted our tariff proposal for the year 2020 to ACM, the regulatory authority in the Netherlands.

The tariff calculation method will be changed with effect from 1 January 2020. This is the result of European legislation for the calculation of tariffs, also known as NC TAR1. On the basis of this European law, ACM has adopted the new method for tariff calculation on 11 December 2018. The choice for the various associated parameters (e.g. the discount on the storage tariff) has been determined by ACM in the same decision.
This means that the entire tariff structure for the calendar years 2020 up to and including 2024 is fixed. The new tariff method leads to one all-in tariff on the entry side and one all-in tariff on the exit side. That is a major simplification compared to the current situation.

Our tariff proposal shows that the average tariff will increase by 10% compared to 2019. This increase is mainly due to methodological changes. Recently the ACM has adopted a revised method decision GTS 2017-2021. As a consequence our allowed revenues for the years 2017-2020 increase by EUR 46 million. In accordance with the Gas Act, this difference must be fully settled in the 2020 tariffs. Together with the adjusted tariff calculation method described above, this will lead to a 9% tariff increase. The increase caused by  declining capacity sales is expected to remain limited to 1%.

The new tariff calculation method and the 2020 tariff proposal are explained in more detail in the document below.

Parties can submit their view on our tariff proposal to the ACM within two weeks. The regulator assesses our tariff proposal plus the submitted views and will take a tariff decision in early May 2019, fixing our 2020 tariffs.

Link to tariff proposal

1 Commission Regulation (EU) 2017/460 of 16 March 2017 establishing a network code on harmonized transmission tariff structures for gas (NC TAR).