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 2020

Information to be published before the annual yearly capacity auction

Art. 29 (a) Information for standard capacity products for firm capacity (reserve prices, multipliers, seasonal factors, 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 FNA 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

The FNA 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 English version of the consultation document – methodology as well as specific discounts have not been amended in the final decision – can be obtained here. 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 the decision of the FNA 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 2020 in the market area of Net Connect Germany: 72.994.668 kWh/h
Forecasted booked capacities at exit points in 2020 in the market area of Net Connect Germany: 119.309.819 kWh/h

Forecasted booked capacities at entry points in 2020 in the market area of Gaspool: 5.254.629 kWh/h
Forecasted booked capacities at exit points in 2020 in the market area of Gaspool: 124.914 kWh/h

Underlying capacity structure
Network fees are calculated on the basis of a forecast of the capacities booked in calendar year 2020 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 (including the distribution to the different capacity products and contract periods) 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.

Virtual Interconnection Points (VIP)
The determination of the capacity forecast is based on the rules of Art. 22 NC TAR.

B) Internal orders: 
The capacity framework for outgoing zones and interconnection points to downstream network operators is based on the long-term forecasts of the downstream network operators for the period from 01.01.2020 to 01.01.2021, which are available to OGE on 15.07.2019.

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) the structural representation of the transmission network with an appropriate level of detail 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) technical information about the transmission network, such as the length and the diameter of pipelines and the power of compressor stations 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.

The allowed revenues of OGE in 2020 are:
965,079,203 € in Net Connect Germany market area
4,982,675 € in Gaspool market area

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

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

Revenue cap forecast 2020 as included in preliminary tariffs (31.05.2019):
965,079,203 € in Net Connect Germany market area
4,982,675 € in Gaspool market area

Change:
+86,544,129 € in Net Connect Germany market area
Change in revenue cap (2020 vs. 2019) 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.

-11,638,202 € in Gaspool market area
Change in revenue cap (2020 vs. 2019) in Gaspool market area is mainly related to effects from 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
47,447,012 € 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 Cost of capital of the cost base year 2015:
268,568,391.56 € in Net Connect Germany market area
4,355,428 € in Gaspool market area
Cost of capital is calculated according to § 6-8 Ordinance on Gas Network Tariffs (GasNEV) for the base year 2015. Cost of capital includes the share of pipeline companies and leased pipelines.
Art. 30 (1) (b) (iii) (3)

a) methodologies to determine 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) Depreciation period and values for asset types:


Net Connect Germany market area
I.    General assets: 3-70 years (no depreciation for land); 23,558,695 €
II.    Gas container: 45-55 years; 0 €
III.    Compressor stations: 20-60 years; 30,608,231 €
IV.    Pipelines: 30-65 years; 76,251,225 €
V.    M+R stations: 8-60 years; 6,049,432 €
VI.    Remote control systems: 15-20 years; 4,156,085 €
Sum: 140,623,668 €

Gaspool market area
I.    General assets: 3-70 years (no depreciation for land); 100,283 €
II.    Gas container: 45-55 years; 0 €
III.    Compressor stations: 20-60 years; 577,434 €
IV.    Pipelines: 30-65 years; 1,108,065 €
V.    M+R stations: 8-60 years; 17,566 €
VI.    Remote control systems: 15-20 years; 11,696 €
Sum: 1,815,043€

Depreciation included in the cost base for the third regulatory period (base year 2015).
Incl. share of pipeline companies and leased pipelines.
 

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

488,050,060 € in Net Connect Germany market area

4,136,754 € in Gaspool market area

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

incentive mechanisms and efficiency targets

German transmission system operators are subject to the incentive regulation system. The revenue cap of a transmission system operator (TSO) that is determined for a regulatory period with a duration of 5 years is based on the costs incurred at the TSO in the base year (year 3 before the new regulatory period) and that were checked by the regulatory authority. Moreover, an efficiency benchmark is conducted between the TSO and, based on their cost and structure parameters, individual company efficiency values are calculated. Possible inefficiencies are to be rectified over the duration of a regulatory period. Furthermore, the regulatory authority calculates a general sector productivity factor that is consistently applied to all transmission system operators.
The general sector productivity factor for the third regulatory period is 0.49%.
The individual efficiency score of FNB is 100 %.

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

103.80 (-5.5 vs. prior year) 
(CPI of 2018, § 8 ARegV)

Art. 30 (1) (b) (iv) the transmission services revenue The revenue from transmission services in 2020 amounts to
801,435,417.25 € in Net Connect Germany market area. Payments received in line with the decision AMELIE (BK9-18/607), amounting to 20,406,565.21 €, were taken into account.
7,492,926.62 € in Gaspool market area. Payments made in line with the decision AMELIE (BK9-18/607), amounting to 10,581,619.74 €, were taken into account.
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 capacity-based tariffs only. Consequently, the share of capacity-based tariffs is 100%.

(2) Entry-Exit-Spilt
Market Area NetConnect Germany
32.59 % Entry
67.41 % Exit
Market Area Gaspool
40.02 % Entry
59.98 % Exit

(3) Cross-border-domestic split in entry-exit system Gaspool/Net Connect Germany: 
Market Area NetConnect Germany
49.74 % domestic usage (661,434,602.09 €)
50.26 % cross-border usage (668,455,344.83 €)
Market Area Gaspool 
66.03 % domestic usage (753,434,247.85 €)
33.97 % cross-border usage (387,579,106.24 €)

The publication of the results of the cost allocation test is made the first time within the consultation process according to art. 26 NC TAR. The test results, including an assessment as well, 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 the Federal Network Agency.

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

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

1) In NetConnect Germany market area:
Actual regulated revenues obtained of 2018: 847,527,904 €
-    thereof transmission service: 740,544,969 €
-    thereof non-transmission service: 106,982,935 €
Aggregated balance of the regulatory account of the closed financial year 2018: 56,156,271 € (excess revenues)
Total balance of the regulatory account until 31.12.2018: -16,267,416 € (revenue shortfall)

In Gaspool market area:
Actual regulated revenues obtained of 2018: 19,272,403 €
-    thereof transmission service: 19,076,025 €
-    thereof non-transmission service: 196,377 €
Aggregated balance of the regulatory account of the closed financial year 2018: 3,135,746 (excess revenues)
Total balance of the regulatory account until 31.12.2018: + 3,156,755 € (excess revenues)

2) Reconciliation of the regulatory account for the concluded business year 2018 is determined in the year 2019 and it will be reconciled in equal instalments – including interest payments – over the subsequent three calendar years. 
Incentive mechanisms specifically for the regulatory account do not exist in the German regulatory system.

Art. 30 (1) (b)(vii) Information on the intended use of the auction premium Auction revenues are booked on the regulatory account in accordance with Article 5 ARegV. This transaction thus develops a tariff-reducing effect in the years in which the regulatory account is reconciled.
Art. 30 (1) (c) Information on transmission and non-transmission tariffs accompanied by the relevant information related to their derivation As part of the REGENT-NCG/REGENT-GP ruling, the Federal Network Agency has determined the use of a stamp in the market area Net Connect Germany/Gaspool. According to this, revenues from transmission tariffs are to be divided by the capacities of the entry and exit points forecasted for the calendar year.
Art. 30 (1) (c) 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 (1) (c) ii) where applied, non-transmission tariffs for non-transmission services referred to in Article 4 (4)

According to the decision of the FNA (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 01.01.2020 are published in the price sheets on the website of OGE.

Biogas levy calculaction
According to article 6 of the REGENT-NCG or REGENT-GP ruling, the biogas levy is classified as a system service according to § 20b GasNEV. The calculation of the biogas levy is described there as well as in § 7 of the cooperation agreement between the operators of gas supply networks located in Germany from 30.09.2019. According to this, the nationwide total biogas costs of 2020 amounting to 196,503,618 € are divided by the nationwide capacity booked or rather ordered from transmission system operators at network connection points to final consumers and grid connection points to downstream network operators, regardless of multipliers or seasonal factors of the year 2020, amounting to 309,469,613 (kWh/h)/a. This results in a biogas levy of 0.6350 €/(kWh/h)/a.

Market area conversion levy calculation
According to article 5 of the REGENT-NCG or REGENT-GP ruling, the market area conversion levy is classified as a system service according to § 19a (1) EnWG. The calculation of the market area conversion charge is described there as well as in § 10 of the cooperation agreement between the operators of gas supply networks located in Germany from 30.09.2019. According to this, the nationwide conversion costs of the year 2020 amounting to 179,168,392.21 € are divided by the nationwide capacity booked or rather ordered from transmission system operators at grid connection points to final consumers and grid connection points to downstream grid operators, regardless of multipliers or seasonal factors of the year 2020, amounting to 309,469,613 (kWh/h)/a. This results in a market conversion levy of 0.5790 €/(kWh/h)/a.

Calculation of 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 point operation includes the measurement and is given in the appendix of the price sheet valid at 01.01.2020. 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 x number of gas meters)
The fee per gas meter and the fee per bookable point are given in the appendix of the price sheet valid at 01.01.2020. 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.

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

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

The reference prices for exit points of internal orders and network connection points are the same as the stamps of the corresponding market area. This corresponds to the tariff calculation method which the FNA has determined in the REGENT decision. The reference prices are the result of the sum of forecasted capacity bookings for all entry and exit points as well as the revenue cap and the entry/exit split of the calendar year t.

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

The entry and exit tariffs of Open Grid Europe will decrease from 4.09* €/kWh/h/a to 4.07 €/kWh/h/a in the Net Connect Germany market area as of 1st of January 2020. This change in tariffs is a reduction of approximately 0.5%. 

The entry and exit tariffs in the Gaspool market area will increase from 1.84* €/kWh/h/a to 3.36 €/kWh/h/a as of 1st of January 2020. This change in tariffs is an increase of approximately 83%.

The adjusted fees are above all based on the market area-wide tariff regime introduced as part of the REGENT decision compared with the tariffs previously applied by individual network operators, as well as on changes in the predicted capacity booking behavior and permissible revenues (mainly as a result of network investments).

* These values correspond to the tariffs for one day rounded to an annual value.

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

Based on the data provided by the TSO, the Federal Network Agency has calculated the development of charges until the end of the regulatory period and published it in Appendix 4 of the REGENT-NCG or rather REGENT-GP decision. According to this, a slight increase in the fees in 2021 and 2022 would be expected.

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

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 2020

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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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