How we calculate our fees

Price policy

The methods we apply in calculating our transportation charges and fees reflect our “break-even” policy and must be approved by the The Danish Utility Regulator. This ensures that Energinet adheres to the same rules and regulations that apply to all EU Transmission System Operators, which supports and stimulates cross-border competition in the gas market.

Capacity reservations & shipped volumes

Energinet’s transportation charges is a projection of future capacity reservations and shipped volumes, based on data from the previous “gas year”. Our gas year runs from October 1 to September 30.

Adjustments

Since Energinet is an independent public enterprise that pursues a “break-even” policy, any discrepancy between our annual revenue and expenses results in an adjustment of our fees and charges for the following year.

The sum of two charges

To help increase transparency in our price policy – and consumer awareness of the relationship between Energinet’s underlying cost and the price we charge – our transportation fee is the sum of two distinct charges: a capacity charge and a commodity charge.

Capacity Charge

The capacity charge is a reservation fee for a shipper’s “right to use” Energinet’s gas transmission system capacity, irrespective of the actual gas volume transported through our system.

The capacity charge covers 70% of Energinet’s annual costbase.

Commodity Charge

Energinet’s commodity charge covers the remaining 30% of the costbase and is billed at the Exit Zone and Exit Points of our gas transmission system – not at Entry.

Similar to the price structure for the Danish electricity transmission system, the size of Energinet’s commodity charge depends solely on the offtake volume.

This way, our fee reflects more closely the costs associated with a shipper’s actual use of Denmark’s gas transportation system.

To learn more about the calculation, please look under “PUBLICATIONS ACCORDING TO CHAPTER VIII, ARTICLE 29 AND 30 OF REGULATION (EU) 2017/460”