Today we are publishing a consultation paper seeking views on the proposal to smooth the seasonal multiplier factors for gas transmission charges. These factors are proposed to apply to non-annual capacity bookings in the postalised tariff from 1 October 2024. This would affect gas suppliers and gas-fired power generators.
Since October 2015, seasonal multiplier factors have applied to non-annual entry capacity products, for example monthly or daily capacity bookings, by applying a factor which either increases or decreases the relevant proportion of the annual tariff.
The seasonal factors were introduced to reflect the seasonality of gas flows during the year and to incentivise suppliers to make more use of the network in the summer and shift demand away from the winter peak. The tariff for a non-annual capacity product is calculated by multiplying the annual tariff by the appropriate seasonal multiplier factor.
We propose to maintain the current factors for Gas Year 2023/2024 and we further propose to smooth the factors from Gas Year 2024/2025, by applying a flat multiplier across the year. This follows our review and analysis which concluded that the use of the non-annual entry capacity products was influenced by demand for gas-fired power generation, particularly during periods of low wind, rather than the seasonal multiplier factors.
We are seeking views on the benefits and potential consequences of making this change to the transmission charging regime.
This consultation is required by EU Regulation 2017/460, the Network Code on Harmonised Transmission Tariff Structures for Gas (“TAR NC”), as amended following EU Exit.
Copies of all documents will be made available in large print, Braille, audio cassette and a variety of relevant minority languages if required.
For more information, please contact John Wasson on 028 9031 6625 or email: Gas_networks_responses@uregni.gov.uk with cc to john.wasson@uregni.gov.uk to request this.
Link to consultation: Consultation on seasonal multiplier factors for gas transmission | Utility Regulator (uregni.gov.uk)