Neutrality charge

What is neutrality charge?
Neutrality charge is a fee paid by transmission system operator to transmission system users or paid by transmission system users to transmission system operator in relation to the balancing of the transmission system. Neutrality charge is calculated as a difference between the costs of the transmission system operator and the revenues from balancing operations. Neutrality charge shall ensure the financial independence of the transmission system operator or the cost neutrality of the balancing measures taken and shall allow the basic function of the transmission system operator. When charging neutrality charge, the transmission system operator shall not financially gain or lose. Neutrality charge is not accrued.

How is neutrality charge calculated?
Neutrality charge is determined by aggregating the revenues and expenses of the transmission system operator from the daily imbalance fees, balancing operations carried out by the operator and the administrative costs for carrying out these activities. The amount obtained is divided by the total quantity of natural gas allocated to be off-taken from the common balancing zone during the preceding month, including the amount of natural gas off-taken at the virtual trading point, thus calculating the value of the neutrality charge. Neutrality charge is indicated in euro/MWh with an accuracy of up to two decimal places.
The total monthly neutrality charge amount applicable to each of the network users is determined by multiplying the value of the neutrality charge with the amount of natural gas off-taken from the common balancing zone by the respective user.

Who pays neutrality charge?
Neutrality charge can be both positive and negative. In the case of negative neutrality charge, the transmission system operator pays the neutrality charge to the transmission system users. In the case of positive neutrality charge, the transmission system operator charges the neutrality charge from the transmission system users.

Does neutrality charge change?
The neutrality charge is calculated monthly and changes monthly. The value of the neutrality charge is calculated by the 10th date of each month and is published on capacity.conexus.lv webpage. The value of the neutrality charge applicable for the January 2020, was 0.02 EUR/MWh (it was charged to transmission system users). The value of the neutrality charge applicable for the February 2020, was -0.01 EUR/MWh (it was paid to transmission system users).

Applicable neutrality charge in 2020

Applicable neutrality charge in 2021

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