Tariff calculation method

The tariff for transmission services No. 12 of the Gas Transmission Operator GAZ-SYTEM S.A. has been drawn up in compliance with the provisions of Regulation No. 715/2009 of the European Parliament and of the Council (EC) of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No. 1775/2005, the Energy Law of 10 April 1997 and the Regulation of the Minister of Energy  of 15 March 2018 on detailed terms for determination and calculation of tariffs and billing in trade in gaseous fuels. The tariff for transmission services No. 12 of the Gas Transmission Operator GAZ-SYSTEM S.A. has been compiled according to entry-exit tariff system assumptions and has been customized the method of settlements of gas transmission services to UE requirements.

The tariff for transmission services No. 12 of the Gas Transmission Operator GAZ-SYSTEM S.A. has been designed in a manner that ensures:
covering justified costs within the scope set out in Article 45 of the Energy Law;
protecting the customer's interest against unreasonable price levels;
elimination of cross-subsidizing.

The rates of transmission fees were calculated based on:
•  justified costs, fixed and variable costs;
•  contracted capacity for the tariff duration.

The justified costs include the costs of transmission activity, including in particular:
•  costs by category (within the meaning of the Accounting Act), i.e.:
- materials and energy (including gas purchased to meet the Operator's own consumption and   imbalance deviations);
- external services (including: repairs and maintenance, lease of storage capacities for the Operator's needs);
- taxes and charges;
- payroll;
- employee benefits;
- depreciation;
- other;
•  justified return on capital employed in the transmission activity.

The justified costs for calculation of prices and rates
are planned by the Gas Transmission Operator GAZ-SYSTEM S.A., and then validated by the President of the Energy Regulatory Office at the tariff application approval stage.

Fixed and variable costs
are determined by the Operator for individual entry and exit points of the transmission system according to the cost allocation rules adopted by the Company (and approved by the President of the Energy Regulatory Office), remaining unchanged for a given tariff period.

Justified return on capital employed in the transmission activity

The Tariff for Gas Transmission Services No. 12 Gas Transmission Operator GAZ-SYSTEM S.A. was established with the assumption of return on capital employed in transmission activity. The return has been calculated on the basis of WACC (weighted average cost of capital).

The basic specifications harnessed in calculating the WACC that were adopted by the Decision of the President of the Energy Regulation Office are:
- Risk free rate of return Rf – 3.31%,
- Premium for shareholders equity (rm - rf) – 4.50%,
- Beta coefficient βE – 0.54 corresponding to asset beta on a level of 0.4,
- Loan capital cost -  4.31%.  
The Regulatory Asset Base in the meaning of the net value of fixed assets involved in transmission activity and the net working capital of the Gas Transmission Operator GAZ-SYSTEM S.A. was subject to compensation.

The tariff structure

In accordance with the tariff for transmission services No. 12, the Gas Transmission Operator GAZ-SYSTEM S.A. charges a fixed fee (depending on contracted capacity), which is calculated:
in entry points to the transmission system (including Underground Gas Storage Facilities),
in exit points of the transmission system (including Underground Gas Storage Facilities).
 
Rates for specified entry and exit points was computed on the basis of revenues regulated in specified points. The ratio of transmission fees collected in entry and exit points of the transmission system stand at 45/55.

More information can be found in the publication document in the TAR NC Publication


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