Energy Community prepares for implementation of network code on harmonised transmission tariff structures for gas

5 September 2018

Today, the Secretariat published the results of a project simulating the possible effects of the future application of the EU Network Code on Harmonized Transmission Tariff Structures for Gas. It is expected that the European Commission will table a formal proposal for adoption of the code in the Energy Community by the end of 2018 based on a (preliminary) text agreed by the relevant working group in May this year.

The network code on harmonised transmission tariff structures for gas aims to enhance tariff transparency and tariff coherency by harmonising basic principles and definitions used in tariff calculation. In addition, it stipulates publication requirements for information on tariffs and revenues of transmission system operators.

The Secretariat, in the framework of the Energy Community Regulatory School and with the support of a consultancy, undertook a simulation of gas transmission tariff calculation using the capacity weighted distance (CWD) reference price methodology, the default methodology prescribed under the network code. The simulation was conducted only for Serbia and Ukraine as they are the only two Contracting Parties having an entry/exit system of gas transmission in place. The simulation tool can be used by the regulators of other Contracting Parties at a later stage.

The results of the two country-specific gas transmission tariff calculation simulations available on the Energy Community website contain fictive financial and technical information due to confidentiality reasons.