Publication according NC TAR

Publication of information according to Article 29 and 30 of the Commission Regulation (EU) 2017/460 of 16 March 2017 establishing a network code on harmonized transmission tariff structures for gas (NC TAR) 

 

Article of TAR NC

Description

Information, link

Information to be published before the annual yearly capacity auction *

29 (a)

Information for standard capacity products for firm capacity (reserve prices, multipliers, seasonal factors, etc.)

Standard capacity product tariffs:

 https://capacity.conexus.lv/?id=189&lang=eng

Multipliers and seasonal factors, which are applied for transmission tariff calculation here and Public Utility Commission decision (in Latvian only):

 https://www.sprk.gov.lv/sites/default/files/editor/ED/Gaze/Tarifi/Conexus_Baltic_Grid_parvades_tarifi_apstiptinati_27.11.2019.pdf

 

29 (b)

Information for standard capacity products for interruptible capacity  (reserve prices and an assessment of the probability of interruption)

Interruptible capacity product tariffs: 

https://capacity.conexus.lv/?id=189&lang=eng

 

For all products for interruptible capacity the discount  of 5% is applied (according to Methodology for calculation of tariffs for natural gas transmission system service 

https://likumi.lv/ta/id/307981-dabasgazes-parvades-sistemas-pakalpojuma-tarifu-aprekinasanas-metodika (in Latvian only))

 

 

*  Annual yearly capacity  auctions according to Commission Regulation (EU) 2017/459 of 16 March 2017 establishing a network code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013 (NC CAM) are not implemented  due to the  implementation  of the implicit capacity allocation procedure according the Article 2 (5) of NC CAM.

 

Information to be published before the tariff period

30 (1) (a)

Information on parameters used in the applied reference price methodology that are related to the technical characteristics of the transmission system

 

Technical capacity at entry and exit flows: https://capacity.conexus.lv/?id=160&lang=eng

The structural representation of the transmission network and direction  of the gas  flow for entry and exit points: https://capacity.conexus.lv/?lang=eng

Additional technical information about the transmission network: https://capacity.conexus.lv/?id=170&lang=eng

 

 

Forecasted contracted capacity for Tariff period from 1 January 2020 at entry and exit points GWh/day/year:

Entry/Exit point

Entry

Exit

 Korneti

0

0

 Kiemenai

4

0

 Karksi

0

0

 Domestic exit point

0

39.3

 Storage

54.3

64.2

 

30 (1) (b) (i)

The allowed or target revenue, or both, of the transmission system operator

Tariff period from 1 January 2020  – 91 335 TEUR

30 (1) (b) (ii)

The information related to changes in the revenue referred to in point from one year to the next year.

In 33 months tariff period (01.01.2020 - 30.09.2022.) revenue is 52 928 TEUR higher comparing with 2019 tariff cycle (12 months).

More information in Public Utility Commission decision (in Latvian only): 

https://www.sprk.gov.lv/sites/default/files/editor/ED/Gaze/Tarifi/Conexus_Baltic_Grid_parvades_tarifi_apstiptinati_27.11.2019.pdf

30 (1) (b) (iii)

Information about the following parameters:

 (1) types of assets included in the regulated asset base and their aggregated value;

(2) cost of capital and its calculation methodology; 

(3) capital expenditures, including:

(a) methodologies to determine the initial value of the assets;

(b) methodologies to re-evaluate the assets;

(c) explanations of the evolution of the value of the assets;

 (d)  depreciation periods and amounts per asset type.

(4) operational expenditures;

(5) incentive mechanisms and efficiency targets;

(6)  inflation indices.

 

  1. Types of assets included into regulated asset base according to Methodology for calculation of tariffs for natural gas transmission system service (methodology only in Latvian)

https://likumi.lv/ta/id/307981-dabasgazes-parvades-sistemas-pakalpojuma-tarifu-aprekinasanas-metodika:

 

I. Fixed assets (land, buildings; technological equipment; other fixed assets);

II. Intangible investments;

III. Payments accounted in assets for participation in the international transmission infrastructure establishment projects;

IV. Liabilities, arising from decisions regarding distribution of investment costs, which were adopted in accordance with the Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009.

 

Calculating RAB there are excluded financial investments, debtors debts, securities and share in capitals, monetary funds, inventories, the value of the assets  not put into operation (construction in progress), as well as a part of the value of fixed assets, which was funded from the state, local government, European Union, other international organization and institution financial aid or support. Calculating RAB there can be included expenses for construction in progress for assets for projects of common interest.

 

RAB aggregated value 171 820 TEUR (Tariff period from 1 January 2020)

 

  1. Cost of capital calculation methodology according to  Methodology for calculation of tariffs for natural gas transmission system service (methodology only in Latvian)

  https://likumi.lv/ta/id/307981-dabasgazes-parvades-sistemas-pakalpojuma-tarifu-aprekinasanas-metodika

WACC rate is set by Public Utilities Commission (PUC). For tariff project in from 1 January 2020  4,22% (only in Latvian)

https://likumi.lv/ta/id/301233-par-kapitala-atdeves-likmi-dabasgazes-parvades-sistemas-dabasgazes-sadales-sistemas-un-dabasgazes-uzglabasanas-pakalpojuma-tari...

Cost of capital – 45 805 TEUR (Tariff period from 1 January 2020)

 

(3) Capital expenditures:

a) methodologies to determine the initial value of the assets – assets are accounted in acquisition value

b) methodologies to re-evaluate the assets – Revaluation shall be made with sufficient regularity to ensure the carrying amount not differs materially from that which would be determined using fair value at the end of the reporting period.

c) explanations of the evolution of the value of the assets – depreciation on a straight-line basis over the following useful lives.

d) depreciation periods and amounts per asset type in tariff period from 1 January 2020 (only transmission):

 

 

Years  

Amount, TEUR

Intangible assets

0-5

688

Fixed assets

 

 

Property, plant and equipment:

 

21 276

- Land

-

-

- Buildings

20-100

261

-  Gas transmission pipelines incl. Line valves and pig launching and receiving traps

30-60

19 418

- External engineering communications

10-50

916

- Wells, roads, areas, fencings,  reservoirs

15-55

940

Technological equipment

5-30

3 177

Other fixed assets and inventory

3-10

725

 

  1. operational expenditures – 41 169 TEUR (tariff period from 1 January, 2020, 33 months);
  2. incentive mechanisms and efficiency targets – not applicable;
  3. inflation indices – not applicable.

 

30 (1) (b) (iv, v)

(iv) Information about the transmission services revenue;

(v) the following ratios for the revenue referred to in point (iv):

(1) capacity-commodity split;

 (2) entry-exit split;

 (3) intra-system/cross-system split.

 

 

(iv) Transmission system revenue – 91 334 TEUR, including 15 426 TEUR ITC revenue (Tariff period from 1 January 2020)

(v) Tariff project:

(1) capacity-commodity split – 100% commodity;

 

30 (1) (b) (vi)

Information  related to the previous tariff period regarding to reconciliation of the regulatory account

 

Difference of actually incurred revenue from 2019 tariff project in amount of 4 361 TEUR was included in tariff period from 1 January 2020

30 (1) (b) (vii)

Information on the intended use of the auction premium

Not applicable

30 (1) (c)

Information on transmission and non-transmission tariffs

Not applicable

30 (2) (a)

Information on transmission tariff changes/trends

Changes of transmission service tariffs until the end of the tariff period:

  1. Standard capacity product tariffs;
  2. Interruptible capacity product tariffs;
  3. Interruptible virtual counterflow capacity product tariffs.

Tariffs are set according to Methodology for calculation of tariffs for natural gas transmission system service.

30 (2) (b)

Information about used tariff model

Tariff calculator, enabling market players calculate their  transmission service costs, is available here:

https://capacity.conexus.lv/?id=141&lang=eng

 

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