Publication requirements NC TAR

Op April 6th the European network code on harmonised transmission tariff structures for gas came into force. Part of this network code is the obligation to publish the following information:

  1. Information on standard capacity products for firm and interruptible capacity, to be published prior to the yearly capacity auction
  2. Financial information and the tariffs per network point, to be published prior to the tariff period

The Dutch national regulatory authority, Autoriteit Consument & Markt is responsible and issues a publication document.

TAR NC Description Link Further Information
Information to be published before the annual yearly capacity auction
Art. 29 Information for standard capacity products for firm and interruptible capacity (reserve prices, multipliers, seasonal factors, etc.) Information page on tariffs NC TAR  
Information to be published before the the tariff period

Art. 30

Financial information and tariffs per network point Information page on tariffs NC TAR  
Art. 31 Reserve prices for standard capacity products for  firm and interruptible capacity and a flow-based charge Price information per interconnection point  

Trend in rekenvolumes

The ACM gives an interpretation of Article 30 (2)(a)(ii) of NC TAR in table 13 of the publication document. The table gives an indication of future trend for tariffs for the coming years 2020 and 2021 within regulatory period 2017-2021. In order to make the information from this table more accessible to interested parties, GTS has set out a more detailed explanation below.

In table 13, a percentage of -3.5% is used as a basis for the factor for the annual change in “rekenvolumes” (=forecasted contracted capacity). This factor corresponds to the average decline in “rekenvolumes” over the last few years. GTS expects this downward trend to continue over the coming years, based on the following assumptions.

First of all, GTS does not expect the expiring long-term contracts to be fully compensated forin the coming years, as it is very likely that market parties will not only book a lower level of additional capacity, but they will also switch to short-term bookings. Short-term bookings lead to lower “rekenvolumes” because the required capacity can be estimated by market parties more effectively within a short space of time than a long time in advance.

It is also anticipated that the energy transition will continue to result in lower “rekenvolumes” in the LDC market segment and, lastly, GTS expects that domestic production will also decrease further over the coming years.

Recent developments concerning Groningen should not have any great effect on total “rekenvolumes” because the reduction of Groningen will probably be compensated for, by and large, by entry bookings elsewhere.

In addition to the effects mentioned above, the new reference price methodology according to NC TAR will also have a bearing on the scope of the “rekenvolumes” with effect from 1 January 2020. It is anticipated that different multipliers to those in the current tariff methodology will apply from that date. Different multipliers will lead to different “rekenvolumes”, even where capacity sales remain the same. The precise effect on “rekenvolumes”, following adoption of the decision on the new reference price methodology by the ACM, will only be seen in practice.

Based on the effects described above, GTS anticipates a drop in “rekenvolumes” of around 2% to 6% per year. If you wish, you can enter these percentages into table 13 of the NC-TAR publication document to calculate the effect of the decline in “rekenvolumes” on the tariffs.

The expected trend in “rekenvolumes” is shown in the graph below.