Decision published on Seasonal Multiplier Factors

21 May 2019

Gas flame

Today, the Utility Regulator publishes its decision on the seasonal multiplier factors to be applied to non-annual entry capacity charges for gas transmission from 1 October 2019.

This will facilitate compliance with the requirements of EU Regulation 2017/460, the Network Code on Harmonised Transmission Tariff Structures for Gas (“TAR NC”) and follows a consultation process which ran from 31 January to 28 February 2019.

The 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. They 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. These factors are multiplied by the annual tariff for entry capacity to determine the tariff for that non-annual entry capacity product.

As previously decided, these factors align with those proposed by the Commission for Regulation of Utilities and are slightly lower than current factors in order to meet the limits in the TAR NC.

We have decided not to offer the permitted capacity charge discounts, as no interruption is forecast and there are no forecast storage volumes. We have further decided that the postalised regime meets the requirements of an inter-TSO compensation mechanism under Article 10.

This decision will slightly alter the seasonal multiplier factors which could lead to minor changes in how transmission revenue is recovered. This is unlikely to have any impact on customer tariffs.

We received four responses:

Copies of the decision 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.