Today, ACER publishes its report on the Danish non-transmission tariffs proposed by Energinet, Denmark’s Transmission System Operator (TSO). These tariffs cover the costs of Denmark’s emergency supply services, such as filling gas storage and providing emergency gas supply to non-protected consumers.
The proposed methodology includes:
- An ex-ante tariff, calculated using a postage stamp reference price methodology (RPM), which distributes emergency service costs equally among all non-protected consumers.
- An ex-post compensation, which adjusts cost allocation after gas is delivered based on the actual gas volumes received by each non-protected consumer during an emergency.
What are the key findings?
ACER evaluated the compliance of the proposed methodology with the requirements of the Network Code on Harmonised Transmission Tariff Structures (NC TAR) and notes:
- The ex-ante postage stamp tariff does not consider the varying risks of supply interruption among different non-protected customers.
- Non-protected consumers receive equal protection for the first 72 hours after emergency measures begin. After this period, the risk of gas supply interruptions may depend on the remaining gas volumes.
- Designing a cost-reflective ex-ante tariff is highly challenging due to information confidentiality and the uncertainty of supply emergencies.
- In the event of a supply emergency, the ex-post compensation increases cost reflectivity by adjusting the initial tariff to reflect the actual level of interruption for each non-protected customer.
- The consultation document lacks sufficient information on the functioning of the ex-post compensation mechanism.
ACER concludes that the proposed non-transmission tariffs comply with the NC TAR and recommends the Danish regulatory authority to ensure greater transparency by providing more detailed information on the ex-post compensation mechanism in their next decision.
Access all ACER reports on national tariff consultation documents.
