Consultation on Seasonal Multiplier Factors for Gas Transmission

21 February 2020

Gas flame

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 2020.

This consultation is required by EU Regulation 2017/460, the Network Code on Harmonised Transmission Tariff Structures for Gas (“TAR NC”).

Seasonal multipliers factors apply to non-annual entry capacity products, for example monthly or daily capacity bookings, by applying a multiplier which either increases or decreases the relevant proportion of the annual tariff. The 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 tariff for a non-annual capacity product is calculated by multiplying the annual tariff by the appropriate seasonal multiplier. These have been included in the gas transmission charging regime since October 2015.

We conclude that the use of non-annual entry capacity products has been relatively low since their inception in 2015. We consider this is largely because a number of suppliers continue to hold an Initial Entitlement of Entry Capacity which meets their capacity requirements. As there is no signal to suggest the current factors are no longer appropriate, and as those factors meet the requirements of the EU Regulation, we propose to maintain the current factors into the Gas Year 2020/21.

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