Consultation on seasonal multiplier factors for gas transmission

Published: 15 March 2021

Consultation opened on 15 March 2021. Consultation closed 13 April 2021.

Summary

This paper seeks views on our recommendation to maintain the current seasonal multiplier factors which are applied to non-annual entry capacity products in the gas transmission charges.

Today the Utility Regulator issues a consultation paper to seek views on the proposed seasonal multiplier factors to be applied to non-annual capacity bookings in the postalised tariff from 1 October 2021.

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.

Seasonal multipliers factors apply 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 reflect the seasonality of gas flows during the year and are set to incentivise suppliers to make more use of the network in the summer and shift demand away from the winter peak. The multiplier factor incentivises the use of annual capacity. The tariff for a non-annual capacity product is calculated by multiplying the annual tariff by the appropriate seasonal multiplier factor. These have been included in the gas transmission charging regime since October 2015.

The current factors meet the requirements of the EU Regulation and we propose to maintain them for Gas Year 2021/2022.

We also propose that the seasonal multiplier factors applied to non-annual entry capacity products ought to be reviewed ahead of Gas Year 2022/2023 due to anticipated increased use following the expiry of the Initial Entitlement of Entry Capacity and CRU’s proposed change to the RoI factors.

Copies of the consultation can be made available in large print, Braille, audio cassette and a variety of minority languages if required.

Please contact Jillian Ferris on 028 9031 1575 or email: Gas_networks_responses@uregni.gov.uk with cc to jillian.ferris@uregni.gov.uk to request this.

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