The tariff increase is a consequence of the significant amount of over recovery included in last year’s tariff calculation and the expectation that there are no tariff reductions due to over re-covery in the coming gas years. Furthermore, the implementation of new economic regulation of Energinet has a substantial effect on the tariffs.

Prior to the yearly capacity auction at PRISMA, Energinet has now published the tariffs for the coming gas year 2022/2023.

Compared to the current gas year, the shippers are looking into an increase of approximately 50%, with a capacity tariff at 50.57 DKK/kWh/h/year. Please be aware that the commodity charge is removed with the Danish Utility Regulators approval of the adjustments to the tariff methodology, hence the only tariff charge will be the capacity tariff.

The main reason for the increase is the effect of the introduction of weighted average cost of capital (WACC) in the economic regulation of Energinet, where future economic risks for the gas transmission system are included in the tariff cost base. The Danish Utility Regulator (DUR) will later this year (Q3-Q4) decide on the economic regulation for Energinet – including the size of the WACC. Energinet will adjust tariffs according to the decision by DUR if it differs from assump-tions made in the tariff calculation. 

Another main reason for the increase is, that the significant amount of over recovery included in previous year’s tariff calculation will not be part of the 2022/23 tariff, due to the expectation that there is no over recovery in the coming gas years.