Resolution ARG/gas 119/10 – “Consolidated Act on the regulation of the quality and the tariffs for natural gas storage services for the 2011-2014 period (TUSG): approval of part II “Regulation of natural gas storage service tariffs for the regulatory period 2011-2014 (RTSG)”, measures on the transitory payment for the gas transportation metering service for 2011.
With this resolution, published on 5 August 2010, the Electricity and Gas Authority established the calculation criteria for the storage tariffs for the third regulatory period (1 January 2011 - 31 December 2014).
The valuation of the net capital invested (RAB) is based on the revalued historical cost method. The return rate (WACC) of net capital invested is set at a real rate of 6.7% before taxes.
The incentives for new investments were confirmed and provide for a higher return compared to the base rate (WACC), amounting to 4% for a period of eight years for extending existing capacities and for a period of 16 years for developing new fields. The revenues associated with new investments are paid starting from the second year following the one in which the costs were incurred (“spending”) and are guaranteed regardless of the volumes transported.
The method for updating the price cap tariffs is applied only to revenue relating to operating costs and is equal to approximately 18% of the revenues in question, which are updated for inflation and decreased by an annual recovery coefficient set at 0.6%. The revenue components which are related to returns and amortisation and depreciation are determined on the basis of the annual update of net capital invested (RAB). Specifically, in the third regulatory period, the amortisation and depreciation is subtracted from the price-cap mechanism.
With this resolution, for the purposes of applying the tariffs, the calendar year is taken as a reference rather than the thermal year and the single tariff is confirmed nationally along with the revenue equalisation mechanism.
Resolution ARG/gas 106/11 – “Approval of company payments and calculation of single payments for storage services and the transitional payment for the gas transportation metering service for 2012, implementing the Electricity and Gas Authority Resolutions ARG/gas 119/10 of 3 August 2010 and ARG/gas 29/11 of 23 March 2011”.
With this resolution, published on 2 August 2011, the Electricity and Gas Authority approved the storage tariffs and the transitory metering payments for 2012, established on the basis of a RAB at 31 December 2010 equivalent to around €3.2 billion with associated revenue of €388.6 million.
Resolution 185/2012/R/gas – “Mechanism for adjustment of storage site restoration costs and amendments to Annex A to the resolution of the Electricity and Gas Authority of 3 August 2010, ARG/gas 119/10”.
With this resolution, published on 10 May 2012, the Authority defined a mechanism for adjusting any differences arising from the total restoration provision paid to the storage company and the costs actually sustained for restoration of the storage sites.
Resolution 313/2012/R/gas – “Approval of company payments and calculation of single payments for storage services and the transitional payment for metering activities for 2013”.
With this resolution, which was published on 27 July 2012, the Authority approved the storage tariffs for 2013. The RAB as at 31 December 2011 for natural gas storage activities was around €3.5 billion. The storage tariffs for 2013 were determined based on reference revenues of €437 million.