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).