Information to be published before the annual yearly capacity auction and the tariff period

Publication according to establishing a network code on harmonised transmission tariff structures for gas 2019

Information to be published before the annual yearly capacity auction

Art. 29 (a) Informationen zu festen Standardprodukten (Reservepreise, Multiplikatoren, Saisonale Faktoren, etc.)

Link to the OGE price sheets for capacity sales in the market areas Net Connect Germany and Gaspool

For the justification of the level of multipliers, OGE refers to BNetzA Decision BK9-18/612 ("MARGIT")

Art. 29 (b) Information for standard capacity products for interruptible capacity (reserve prices and an assessment of the probability of interruption)

Link to the OGE price sheets for capacity sales in the market areas Net Connect Germany and Gaspool

BNetzA determined the discounts for interruptible capacity at interconnection points in its decision BK9-18-612 (‘MARGIT’) Annex I. The methodology to calculate these discounts is described in chapter 5 of the decision. The data to calculate the discounts have been published during the consultation.  

The methodology to calculate discounts for interruptible capacity of storage points is specified in BNetzA decision BK9-18-608 ("BEATE 2.0", chapter 3.2). Further explanations on the determination of the probability of interruptions according to the decision BK9-18-608 ("BEATE 2.0") can be obtained here.

 

Information to be published before the tariff period

Art. 30 (1)(a) Information on parameters used in the applied reference price methodology related to the technical characteristics of the transmission system.  
Art. 30 (1)(a) i) technical capacity at entry and exit points and associated points This parameter is not used in the postage stamp reference price methodology. Consequently, the publication is neither possible nor necessary.
Art. 30 (1)(a) ii) forecasted catracted capacity at entry and exit points and associated points

Forecasted booked capacities at entry points in 2019 in the market area of Net Connect Germany: 63,376,211 kWh/h
Forecasted booked capacities at exit points in 2019 in the market area of Net Connect Germany:  118,965,563 kWh/h

Forecasted booked capacities at entry points in 2019 in the market area of Gaspool: 7,613,865 kWh/h
Forecasted booked capacities at exit points in 2019 in the market area of Gaspool:  1,431,953 kWh/h

Underlying capacity structure
Network fees are calculated on the basis of a forecast of the capacities booked in calendar year 2019 using the method described below, with a distinction being made between the following groups of handover points:

A) Border and market area interconnection points as well as storage and network connection points:
The precise forecast of the booking quantities for each point and direction was based on various input parameters (e.g. transport bookings and allocations over the last three years) using a standard forecasting procedure. In individual cases where the forecasting procedure did not provide a plausible forecast of the quantities, the forecast was done manually based on the quantities booked in the previous years.
To determine the share of the different capacity products and contract periods in the booking quantities predicted, the corresponding relative distribution in the first half of the current calendar year was used, taking into account the transport bookings already received for the forecast period.

B) Internal orders:
The capacity structure for exit zones and network interconnection points to downstream network operators is based on the capacity forecast for the year 2019 as of 15 July 2017. In Q1 2018 OGE assumes that the dimension temperatures according to DIN 21831 are going to be updated shortly. The dimensioning temperatures are basis for the capacity need of the downstream network operators connected to the OGE gas transmission grid. In the plannings of OGE was assumed that the updated dimension temperatures are below the previous set dimension temperatures. Consequently a reduction of 1% in the long-term capacity forecast for the internal orders was assumed.

Art. 30 (1)(a) iii) the quantity and the direction of the gas flow for entry and exit points and associated assumptions, such as demand and supply scenarios for the gas flow under peak conditions This parameter is not used in the postage stamp reference price methodology. Consequently, the publication is neither possible nor necessary.
Art. 30 (1)(a) iv) eine ausreichend detaillierte Darstellung der Fernleitungsnetzstruktur This parameter is not used in the postage stamp reference price methodology. Consequently, the publication is neither possible nor necessary.
Art. 30 (1)(a) v) zusätzliche technische Informationen zum Fernleitungsnetz, wie Länge und Durchmesser der Pipelines und Leistung der Verdichterstationen This parameter is not used in the postage stamp reference price methodology. Consequently, the publication is neither possible nor necessary.
Art. 30 (1)(b)(i) Information on the allowed and/or target revenue.

Die zulässigen Erlöse der OGE betragen:

878,535,074 € in Net Connect Germany market area
16,593,905 € in Gaspool market area

Art. 30 (1)(b)(ii) Information related to changes in the revenue.

Revenue cap forecast 2018 as included in tariffs (30.09.2017):
783,565,759 € in Net Connect Germany market area
17,847,721 € in Gaspool market area

Revenue cap forecast 2019 as included in preliminary tariffs (31.05.2018):
878,535,074 € in Net Connect Germany market area
16,620,877 € in Gaspool market area

Change:
'+94,969,315 €  in Net Connect Germany market area
Change in revenue cap (2018 vs. 2017) in Net Connect Germany market area is mainly related to increased investment measures, effects from regulatory account and higher levies for L-H-Gas conversion.
-1,226,844 € in Gaspool market area
Change in revenue cap (2018 vs. 2017) in Gaspool market area is mainly related to effects from regulatory account and network transitions.

Art. 30 (1)(b)(iii) (1) Information related the following Parameters: types of assets Regulated asset base
2,970,430,690 € in Net Connect Germany market area
94,894,023 € in Gaspool market area
Regulated asset base in cost base for the third regulatory period (base year 2015); does not include assets for investment measures according to § 23 Ordinance on Incentive Regulation (ARegV), which are approved for a period after 2017.
Incl. share of Pipeline companies and leased pipelines.
Art. 30 (1)(b)(iii) (2) costs of capital and its calculation methodology 268,568,391.56 € in Net Connect Germany market area
8,710,856 € in Gaspool market area
Cost of capital are calculated according to § 6-8 Ordinance on Gas Network Tariffs (GasNEV) for the base year 2015. Cost of capital include the share of Pipeline companies and leased pipelines.
Art. 30 (1)(b)(iii) (3)

a) methodologies to detrmine the initial value of 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

a) The capital expenditures are determined on the basis of the historical procurement and manufacturing costs of the asset as evaluated according to German Accounting Principles (HGB). 

b) According to GasNEV, there is no re-evaluation of assets foreseen that are capitalized from 2006 onwards. Older Investments are partially considered at replacement values according to § 6a GasNEV.

c) There is a linear depreciation of the regulated asset base lied out in § 6 GasNEV

d) Download (depreciation periods and amounts per asset type)

Entspricht den im Ausgangsniveau für die 3. Regulierungsperiode (Basisjahr 2015) enthaltenen Abschreibungen. Inkl. Anteilen an Leitungsgesellschaften und gepachteten Leitungen.

Art. 30 (1)(b)(iii) (4) operational expenditures

452,363,944 € in Net Connect Germany market area

8,273,508 € in Gaspool market area

Art. 30 (1)(b)(iii) (5)

 

 

Since 2010, German transmission system operators (TSOs) are subject to incentive regulation.
In the German regulatory system, costs and revenues are decoupled for one regulatory period (five years). In case of a cost decline, which means a significant undershooting of allowed revenues, the TSO is allowed to keep the differences – within one regulatory period – as an additional return. In case of increased costs incl. CPI and general efficiency factor, the increase diminishes the regulatory return of the TSO.
The Revenue cap is based on the costs of a TSO, which are determined based on costs of a base year (3 years before the start of a new regulatory period) and examined and approved by the German national regulatory authority (Bundesnetzagentur). In addition, there is an efficiency benchmark of all TSOs which determines an individual efficiency factor for each TSO out of structural items and approved costs. In case of an individual efficiency factor less than 100%, the stated inefficiencies are to be demounted during one regulatory period. Therefore, the revenue cap is lowered each year, until the target is reached in the fifth year of the regulatory period.
There is also a general efficiency factor determined by the German national regulatory authority (Bundesnetzagentur). It describes the increase in productivity of the grid sector, compared to the increase in productivity of the national economy as a whole considering the respective input price development (“Einstandspreisdifferenzial”).

Art. 30 (1)(b)(iii) (6) inflation indices

109.3 (+1.8 vs. prior year)
(CPI of 2017, § 8 ARegV)

Art. 30 (1)(b)(iv) the transmission services revenue The revenue from transmission services in 2018 amounts to
745,879,058 €  € in Net Connect Germany market area
16,620,877 € in Gaspool market area
Art. 30 (1)(b)(v)

the following ratios for the revenue referred to in point:

(1) capacity commodity split

(2) entry-exit split

(3) cross-border-domestic split

1) OGE offers only capacity-based tariffs. Consequently, the share of capacity-based tariffs is 100%

2) The ratio (entry- / exit-split) of the forecasted entry and exit bookings is 34.76% (entry) to 65.24% (exit) within the market area Net Connect Germany and 84.17% (entry) to 15.83% (exit) within the market area Gaspool.

3) The publication of the results of the cost allocation test is made within the consultation process according to art. 26 NC TAR.The test results are published within consultation process REGENT for the market areas Net Connect Germany (BK9-18/610-NCG)) and Gaspool (BK9-18/611-GP) on the website of Bundesnetzagentur (BNetzA).

Links to REGENT NCG and REGENT/GP  

Art. 30 (1)(b)(vi)

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

1)
In Net Connect Germany market area:
Actually obtained revenues of 2017: 752,862,927 €
Under-shooting of the allowed revenue of 2017: -56,011,862 € (revenue shortfall)
Total balance of the regulatory account until 31.12.2017: -81.715.005 € (revenue shortfall)

In Gaspool market area:
Actually obtained revenues of 2017: 25,010,268 €
Over-recovery of the allowed revenue of 2017: +5,630,422 € (excess revenues)
Total balance of the regulatory account until 31.12.2017: +2,516,223 € (excess revenues)

2) The balance of the regulatory account of 2017 is determined in 2018 and settled with constant rates – incl. interest – over the following three years (§ 5 ARegV in conjunction with § 34 ARegV) between 2019 and 2021.
There are no specific incentive mechanisms concerning the regulatory account in German regulation.

Art. 30 (1)(b)(vii) Information on the intended use of the auction premium For revenues from auctions, which are greater than the regulated capacity fee (see section 17 (1) Anreizregulierungsverordnung), Open Grid Europe GmbH will decide on an annual basis either to use such revenues to eliminate permanent or temporary congestions or to reduce capacity fees generally.
Art. 30 1c) Information on transmission and non-transmission tariffs accompanied by the releveant information related to their derivation  
Art. 30 1c) i) where applied, commodity-based transmission tariffs referred to in Article 4 (3) Open Grid Europe does not apply commodity-based transmission tariffs.
Art. 30 1c) ii) where applied, non-transmission tariffs for non-transmission services referred to in Article 4 (4)

According to the decision of Bundesnetzagentur (BK9-17/609 (Festlegung INKA)), the non-transmission services are set to metering point operation, metering service, biogas levy according to §20b GasNEV, market area conversion levy according to §19a Abs. 1 EnWG as well as the nomination replacement procedure according to §15 Abs. 3 GasNZV. The non-transmission service fees valid as of 01.01.2019 are published in the price sheets on the website of OGE.

Fees for metering service and metering point operation
Fees for metering services and metering point operation are charged at the network connection points for which Open Grid Europe GmbH assumes the relevant market roles. The fee for metering services include the charge for the metering service and is charged for each bookable point. Details are provided in the Annex of the published price sheet with validity as of 1st January 2019. The fee for metering point operation is determined on the basis of a uniform fee for each bookable point plus a fee for each gas meter assigned to the bookable point. Consequently, the fee for metering point operation is calculated as follows:

Fee for metering point operation = fee for bookable point + (fee per gas meter * number of gas meters)

The fee per gas meter and the fee per bookable point are detailed in the annex of the price sheet with validity by 1st of January 2019. The multipliers described for capacity booking with a run-time of less than 1 year do not apply to the fees for metering services and metering point operation.

Biogas levy according §20b GasNEV
The Germany-wide biogas levy according to Section 20b of the Gas Network Charges Ordinance (GasNEV) is charged by Open Grid Europe GmbH at all relevant exit points (end users, downstream network operators) in addition to the network fees.

According to Section 7 (7a) of the Cooperation Agreement X (KoV X), exit capacities at storage facilities, border crossing points and crossing points between market areas are exempt from the biogas levy. The BEATE provisions do not apply in the case of the biogas levy. Details of the biogas levy charged across Germany can be found in the annex of the published price sheet for 2019 on the website of OGE.

Market area conversion levy
The market area conversion levy, which is applied across all networks in Germany, is charged by Open Grid Europe GmbH at all exit points in addition to the network fees. The provisions of the BEATE decision do not apply in the case of the market area conversion levy. The market area conversion levy amounts in 2019 to 0.3181 €/(kWh/h)/a.

Link to the OGE price sheets for capacity sales in the market areas Net Connect Germany and Gaspool

Art. 30 1c) iii) the reference prices and other prices applicable atpoints other than those referred to in Article 29

Open Grid Europe uses the postage stamp methodology to derive the reference prices for the network fees which is based on three input parameters:

  • Sum of forecasted capacity booking both for entry and exit in calendar year 
  • Allowed revenues for calendar year
  • entry/exit-split for calendar year t

The allowed revenues are separated into an entry and an exit allowed revenue by the entry/exit-split. The reference prices are then derived by the division of the allowed entry revenues and forecasted entry capacities as well as by the division of the allowed exit revenues and forecasted exit capacities.

Art. 30 2 a) i) Information on transmission tariff changes and trends

The entry and exit tariffs of Open Grid Europe will increase from 3.73 €/kWh/h/a to 4.09 €/kWh/h/a in the Net Connect Germany market area as of 1st January 2019. This change in tariffs is an increase of approximately 9.7%. The increase is mainly related to increased investment measures and effects from regulatory account.

The entry and exit tariffs for capacities in the Gaspool market will not change and remain at the level of 1.837 €/kWh/h/a in 2019.

Art. 30 2 a) ii) The difference in the level of transmission tariffs for the same type of transmission service applicable for the tariff period for which the information is published and for each tariff period within the remainder of the regulatory period

Currently it is unknown which reference price methodology is to be applied for the tariff year 2020 and the following. Consequently no indicative statements about the tariff development for the years 2020 – 2022 is possible. In this context we refer to the consultation according to art. 26 of the Network Code Tariffs which is to be performed by the Bundesnetzagentur according to the “INKA” decision (BK9-17/609).

Art. 30 2 b) Information about the used tariff model and an explanation how to calculate the transmission teriffs applicable for the prevailing tariff period

The tab “Simulation“ includes a simplified model  in accordance with Art. 30 (2) b Regulation (EU) 2017/460. It allows for replicability of the current tariffs as well as for estimation of future tariffs.
The model calculates an entry and an exit tariff applicable to a standard yearly FZK capacity in the current tariff period. This is the basis for all transmission tariffs calculated by applying different multipliers and discounts. These information are made transparent by the TSOs in accordance with the applicable transparency provisions.
In the simulation tab, the grey cells are those which are an input parameter to the tariff calculation. This includes the allowed revenues, the forecasted contracted capacity booking (entry and exit) as a yearly FZK- equivalent, i.e. adjusted by potential multipliers and discounts, as well as the entry/exit split. For tariff simulation, the respective grey shaded cells may be used to express changes expected. Finally, the current and simulated tariffs are compared.

Link to simplified tariff mode

Art. 30 3 Information about the points excluded from the definition of relevant points The forecasted booked capacity for the points excluded from the definition of relevant points referred to in point 3.2 (1)(a) of Annex I to Regulation No 715/2009 is already included in the capacity forecast according to Art. 30 1a) (ii).

 

Publication according to establishing a network code on harmonised transmission tariff structures for gas 2019

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Explanations on the determination of the probability of interruptions according to the decision BK9-18-608 ("BEATE 2.0")

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Depreciation periods and amounts per asset type

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