On the way to more harmonised tariffs with the TAR network code

The TAR network code, which should result in more harmonised tariff structures in Europe, was approved by the European Union member states on September 30. This was an important milestone for the network code, which is expected to come into force on April 1, 2017, if the European Parliament approves the code at the end of this year.

With the TAR network code, the full title of which is 'Harmonised Transmission Tariff Structures for Gas', the European Commission aims for tariff methodologies, which will also ensure that it becomes transparent how the cost-reflective tariffs are calculated. In order to achieve the above, the European Commission has, among other things, prescribed a “Reference price methodology” in the network code, which the TSOs will have to develop further.

What does the implementation of NC TAR look like in the Netherlands?
To ensure that we, in the Netherlands, can work in accordance with this methodology, a number of steps still have to be taken. Ultimately, the intention is that the prescribed methodology will form the basis for our rates. Currently, we are in consultations with the ACM to see how we can develop this implementation process and how best to involve the market in this process. This refers to both the time path of the various steps as well as the content of these steps. This process includes, amongst other things, consultation sessions, possible changes in existing codes, tariff proposals based on NC TAR and adjustments in existing IT systems. We will keep you updated on any new developments.

  • 30-09-2016:               NC TAR approved by EU member states
  • End 2016:                   NC TAR approved by Parliament
  • 01-04-2017:               NC TAR expected to come in to force
  • To be determined:      Formal consultation phase
  • 31-05-2019:               NC TAR tariff methodology in to force, ongoing tariff year should be finished