Uniform entry and exit gas transmission tariffs on 1 October 2019

Two main goals will be reached on 1 October 2019. The new tariff network code (TAR NC) will be implemented and as a key element, Energinet Gas TSO introduces the same tariffs on all points in and out of Denmark, making it easier for the shippers transporting gas to and from Denmark.

Tariffs may be based on distance transmitted or on a postage-stamp basis. The new tariff principle is based on the postage-stamp basis which does not take the transport distance into account.

The Danish Utility Regulator (DUR) announced a decision on the 31 May, on the case of “Tariff Methodology for the Danish Transmission System – TAR NC approval”. The decision can be found on DUR website (http://forsyningstilsynet.dk/gas/afgoerelser/tilsynsafgoerelser/2019/)

Moving forward the methodology needs to be revised and approved by DUR every third year.

The postage-stamp principle is one of several new changes in the tariff methodology

Apart from the uniform tariff principle, the approved methodology includes following key points:

  • Zero transmission tariffs at the storage point
  • The cost base will be split in a 70%/30% ratio between capacity and commodity tariffs
  • The long-term multiplier will not be implemented by 1October 2019 
  • The seasonal factor will not be implemented by 1 October 2019 
  • 1/3 of the CAPEX related to the pipeline and compressor station in Ellund-Egtved will be covered by the emergency tariffs
  • Balancing charge, approved as a part of Joint Balancing Zone, will be handle as a non-transmission tariff

Energinet Gas TSO has used the listed principles in the calculation of the tariffs for the coming gas year (1 October 2019 to 30 September 2020).

The tariffs can be found here: https://en.energinet.dk/Gas/Tariffs-and-Fees

Before 1 July 2019, Energinet will also publish an updated tariff forecasting model.



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