Brendan A'Hearn’s Post

View profile for Brendan A'Hearn, graphic

Associate editor - European Natural Gas at Argus Media

*Austrian entry tariffs from Germany could triple, and Italian tariffs quadruple under suggested changes made by regulator E-Control to the reference price methodology for 2025-28* Read the full story free here: https://lnkd.in/eRx-aUcg A reorganisation of flow patterns since the start of the war in Ukraine has led to a "completely changed situation", the regulator said — transit flows have decreased significantly and Austria imports much more gas from Germany and Italy. E-Control plans to adapt its tariff calculation methodology to reflect these changes for the 2025-28 regulatory period, and is consulting on its proposal until 21 Feb. The regulator wants to switch the reference price methodology to a capacity-weighted distance model because it is the "default" option in the EU law and "offers robust, cost-reflective tariffs in an environment of uncertain future gas flows". Final tariffs will be published at the beginning of June, ahead of the yearly capacity auctions. E-Control will begin calculating tariffs on a yearly basis, allowing it to "reflect changes in gas flow patterns and demand for transmission capacity more accurately". E-Control plans to apply a 100pc discount for entry points from storage and no discount for exit points to storage. And it wants to reintroduce a commodity charge to cover the cost of transmission services — of roughly €0.12/MWh for entry flows and €0.13/MWh for exit flows. No commodity charge will be levied this year, while the charge had been much higher for June 2022-December 2023. E-Control's planned entry tariff — using the capacity-weighted model and factoring in its predictions for contracted capacity in 2025 — would triple the entry tariff from Germany at Oberkappel to €2.97/kWh/h/yr. And the entry tariff for Arnoldstein on the Italian border would be four times higher at €4.18/kWh/h/yr (see 2025 vs 2024 table). At the same time, entry capacity at Baumgarten would increase by only 31pc to €1.11/kWh/h/yr. All interruptible entry tariffs will rise significantly. Exit tariffs to the Storage Penta West point — where gas exits the grid for injection into the Haidach and 7Fields facilities — will climb under E-Control's proposal, as will exit tariffs to the storage facility just on the other side of the Slovak border. In the following years, E-Control preliminarily expects entry tariffs to slip at Baumgarten and rise at Oberkappel and Uberackern. And it projects a rise in exit tariffs to Hungary by 55pc by 2028 from 2025 (see 2025-28 table). The regulator wants a multiplier of 1 for annual transport capacity products, 1.5 for quarterly and monthly capacity, and 3 for daily and within-day products. This structure aims to promote efficient use of the system "by keeping tariffs for new long-term bookings competitive". Additional long-term bookings may in turn contribute to a reduction in future multipliers, E-Control said #gas #supply #tariff

Austrian regulator plans to hike gas entry tariffs | Argus Media

Austrian regulator plans to hike gas entry tariffs | Argus Media

argusmedia.com

To view or add a comment, sign in

Explore topics