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Netherlands’ GTS to increase tariffs in 2018

06 Sep 2017 14:39 (+01:00 GMT)
Netherlands' GTS to increase tariffs in 2018

London, 6 September (Argus) — Dutch system operator Gasunie Transport Services (GTS) has submitted a proposal to regulator ACM for higher gas tariffs from 1 January 2018.

GTS plans to lift transport fees, as well as balancing and quality conversion tariffs, by an average of 4pc from July-December 2017 levels.

Entry and exit fees will increase by an average of 4pc at all border points if the proposal is accepted, and could rise most sharply at Belgian connection points. Exit fees at Hilvarenbeek, where low-calorie gas is delivered to the Fluxys network, could be 33pc higher including balancing and quality conversion charges.

And the entry fee for the low-calorie Alkmaar storage facility will rise by around 40pc, having fallen sharply in the second half of 2017. Taqa, which operates Alkmaar and Bergermeer, previously called for the removal of entry and exit fees at all Dutch storage connection points to make it cheaper for market participants to use storage.

The increase in tariffs was mostly because of the "negative corrections" included in the 2017 tariffs, GTS said. The system operator had to lower its tariffs from 1 July following the publication of a new methodology for calculating fees, according to which ACM sets the maximum tariffs that GTS is allowed to charge each year based on the firm's projected revenue.

And GTS' capacity sales were expected to fall in 2018 because of a shift in shippers' behaviour to short-term from long-term capacity bookings, the firm said.

The system operator did not include the Julianadorp interconnection point in its tariff proposal, in line with its plans to integrate the BBL into the TTF market area from 1 January 2018. The removal of Julianadorp contributed further to the higher tariffs, as its exit fee will be redistributed over GTS' other network points.

But whether the planned integration will come into effect from 1 January 2018 would partly depend on whether UK regulator Ofgem gives its approval, GTS said.

ACM will assess the proposal and confirm the 2018 tariffs in November. Market participants can submit comments on the proposal until 20 September.

4518775

GTS exit and entry fees at selected connection points€/MWh
Exit 2016Exit 2017Exit 2018Entry 2016Entry 2017Entry 2018
Border points
Hilvarenbeek 0.270.180.240.140.110.13
Julianadorp 0.150.11N/A 0.200.14N/A
Winterswijk/Zevenaar 0.200.140.180.190.140.17
Bocholtz 0.230.160.210.140.110.13
Emden0.120.100.110.120.100.11
Storage points
Bergermeer0.140.110.130.150.110.13
Alkmaar0.130.100.120.170.100.14
*tariffs are for annual capacity bookings and include balancing and quality conversion fees.