NC TAR implementation process enters new phase

In the past months we have, together with ACM, worked on preparation of the implementation of the European network code on harmonized transmission tariff structures for gas (hereafter NC TAR). During several stakeholder sessions, with both individual customers and representative organizations actively participating, the various NC TAR elements have been explained and several implementation options have been discussed. Given the reactions of our stakeholders  during these sessions, we conclude that the presented information and the lively discussions have been highly appreciated.

Stakeholders indicated that the current Dutch gas market is well functioning and also emphasized that this position should be maintained or strengthened. Stakeholders have a clear wish for development of a new tariff structure which contributes to this well-functioning gas market. We support this vision. The Brattle Group has performed a study to identify the desirable features of the Dutch gas market and has analyzed in which way tariff structures can support the identified features. The Brattle Group determined the following desirable features: liquid TTF hub & competitive gas market, security of supply and maintaining transit via existing interconnection with other markets and networks. Within the possibilities of NC TAR, these desirable features should be supported.

We have based our NC TAR implementation proposal on the input of our stakeholders and the Brattle report. Our proposal fulfills the market wish to develop a tariff structure which maintains the desirable market features and is compliant with NC TAR regulation. You can find our proposal, a tariff calculation tool and all other NC TAR information on our website.

The key elements of our proposal are depicted in the following table:

The NC TAR implementation process will now enter a new phase. In November and December 2017 the final market sessions have been held, during which ACM has explained their assessment framework and where the key elements of our proposal have been commented upon informally by ACM. ACM will now write a consultation document including changes to at least the Dutch Tariff Code and Transport Code. Our proposal and the opinion of the different stakeholders will be taken into account. The draft NC TAR decision will be published on 1 March 2018 by ACM. Stakeholders can give a formal written view within three months after the publication of the draft decision. The final decision will be taken by ACM,  at the latest five months after the consultation period (expected 1 November 2018).

In case you want further information about our proposal and the next steps of the NC TAR implementation process, you can contact our Customerdesk or Industry Desk.