*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
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After facing significant backlash from market participants for its proposed changes to Austrian entry/exit tariffs, regulator E-Control has now walked back some of these changes. It will stick with the change to a capacity-weighted distance model, as this better reflects the changed flow dynamics in Austria, it says. But the proposed change to a 50:50 entry/exit split has been dropped, and is now proposed to be 25:75 (close to the current 20.6:79.4). This results in DRASTICALLY lower entry tariffs, which were a significant source of criticism from the market, particularly as this makes diversification efforts more expensive. The new entry tariffs, and their comparison to the previously-suggested tariffs, can be seen in the attached table. E-Control also previously proposed a 100% discount for entry at storage points and no discount for exits to storage facilities, another unpopular idea particularly among the storage operators themselves. E-Control now proposes a discount of 50% applied to exits to storage facilities. And finally, it will limit exit tariffs to the distribution area "in such a way that the cost allocation assessment is roughly balanced, i.e. <10%", so as to avoid cross-subsidisation. Positive changes? Interested to hear peoples' thoughts. #gas #trading #CEE #Austria #tariffs #regulation
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