Market consultation on Energinet’s application for an amendment of the Danish Regulator’s decision on the establishment of a joint market zone of 14 February 2022
Energinet invites market participants and other interested parties to participate in the consultation before the application is submitted to the Danish Utility Regulator
The methodology application concerns an amendment of the Danish Utility Regulator’s ‘Decision on the establishment of a joint market zone’ of 14 February 2022 with terms and conditions in accordance with Gastransmission A/S’s ‘Application for approval of establishment of a joint market zone’ of 15 September 2021. The methodology and the fundamental principles for the establishment of a joint market zone of 15 September 2021 are otherwise maintained.
The application concerns the request for an amendment of the Danish Utility Regulator’s methodology approval, so that the reference to section 2 of Executive Order no. 816 of 27 June 2016 on economic regulation of Energinet.dk and the principle of inclusion of necessary costs for efficient operations and a necessary return on capital are omitted from the decision and are replaced by a reference to the current revenue cap regulation of Gastransmission A/S.
The application for an amendment is a result of discussions with the Danish Utility Regulator regarding the interaction between the revenue cap regulation of Gastransmission A/S applicable as of 1 January 2023 and the Danish Utility Regulator’s methodology approval of 14 February 2022, in which reference is made to the then break-even regulation (strict cost plus regulation or “hvile-i-sig-selv-regulering”) of Energinet, including of Gastransmission A/S.
Energinet finds that the current apparent uncertainty about Gastransmission A/S’s charging of a non-transmission tariff through the application of a risk-adjusted return on the invested capital in the upstream part of the Baltic Pipe can be resolved by a new decision from the Danish Utility Regulator, after which there will no longer be any doubt as to the regulatory framework.
Deadline for the submission of comments is 8 September 2023.
- Høringsudkast: ANMELDELSE AF JUSTERING AF FORSYNGSTIL-SYNETS AFGØRELSE OM ETABLERING AF EN FÆLLES MARKEDSZONE AF 14. FEBRUAR 2022
- Bilag 1. RETSGRUNDLAG
- Bilag 2. AFGØRELSE OM ETABLERING AF FÆLLES MARKEDSZONE AF 14 FEBRUAR 2022
- Consultation document: SUBMISSION OF APPLICATION FOR AMEND-MENT OF THE DANISH UTILITY REGULATOR’S DECISION ON THE ESTABLISHMENT OF A JOINT MARKET ZONE OF 14 FEBRUARY 2022
Mads Lyndrup, +4523417608, MYN@energinet.dk