Tariff proposal 2018
On August 31th 2017, GTS submitted its tariff proposal for the year 2018 to the Netherlands Authority for Consumers and Markets (ACM). The tariff proposal contains tariffs for transport, quality conversion, balancing, existing connections and connection points.
The tariff proposal shows that, on average, the tariffs are 4% higher than the counterfactual tariffs for 2017. The transport tariffs will increase by 8%, the tariffs for existing connections by 7% and the tariffs for connection points by on average 4%. The tariffs for balancing will remain the same, whereas the tariffs for quality conversion will decrease by 14%.
| Explanation 4 percent increase tariffs | File extension pdf | File size 28 kB | Date last updated 25 Apr 2023 |
The x-factor has, on average, a downward effect on the tariffs, nevertheless, the tariffs will increase. The average increase of the tariffs is primarily caused by the large negative corrections included in the 2017 tariffs, which will expire in 2018. In addition, the 2018 sales are expected to decrease due to, amongst other factors, a change in the booking behavior of shippers (shift from long term to short term). A decrease in sales leads to an increase in tariffs because of the revenue-cap regulation system. Furthermore, interconnection point (IP) Julianadorp is not included in the tariff proposal: GTS has decided to continue the realization of the integration of the BBL interconnector in the TTF market area, including the removal of the IP and redistribution of the tariff. Whether this planned market integration will be effective from January 1st 2018 also depends on whether the British regulator Ofgem gives its approval.
The implementation of virtual interconnection points (VIPs) is not taken into account in this tariff proposal. Consultations with market parties are ongoing. The VIP tariffs are expected to be determined as intermediate tariffs for Q4 2018 no later than May 2018.
The ACM is currently evaluating the proposal and will publish the tariff decision in November 2017.