Capacity-based charges

Capacity-based charges

16.1 The revenues to recover through the application of the capacity-based charges are equal, in each year t of the regulatory period, to the difference between:

a) the sum, for all transmission businesses, of the target revenue attributable to the component RT^CAP pursuant to paragraph 3.2, letter a), relating to the year t;

b) the revenue RSC resulting from the application of the overrun charges at the network entry and exit points in the year t-2, including the penalties paid in that year pursuant to paragraph 10.1 of Resolution 168/06 of 31 July 2006, within the limits of a threshold equal to 5% of the target revenue attributable to the component RT^CAP pursuant to paragraph 3.2, letter a); the price adjustments of the overrun revenue pertaining to the previous years are also taken into consideration under the scope of the component RSC calculated following the TIS settlement sessions.

16.2 The revenue in the previous paragraph, letter b) exceeding the 5% threshold is considered for the purpose of calculating the capacity-based charges for the year t+1.

16.3 The capacity-based charges CPe and CPu are calculated using the methodology based on the capacity weighted distance based on the following procedure:

a) the weighted average distance is calculated for each entry point, determined as the sum of the products of the allocation capacity at each exit point and the distance between the entry point and each exit point, divided by the sum of the forecasted allocation capacities at each exit point, based on the following formula:

𝐴𝐷 ∑ 𝐶𝐴𝑃 ∙ 𝐷 _,

∑ 𝐶𝐴𝑃

where:

 𝐴𝐷 is the weighted average distance for an entry point;

 𝐶𝐴𝑃 is the planned allocation capacity at an exit point;

 𝐷 _, is the distance between a given entry point and a given exit point;

Annex A

In case of discrepancies between the information published on the Italian version and the information published on the English version of this document, the Italian version shall prevail.

for the purpose of the calculations in letter a), the national production entry points are combined into 10 entry points from the production hubs; the distance to the exit points is calculated for each hub taking into consideration the distance from the most representative production point in terms of volumes injected;

b) the weighted average distance is calculated for each exit point, determined as the sum of the products of the allocation capacity at each entry point and the distance between the exit point and each entry point, divided by the sum of the planned allocation capacities at each entry point, based on the following formula:

𝐴𝐷 ∑ 𝐶𝐴𝑃 ∙ 𝐷 _,

∑ 𝐶𝐴𝑃

where:

 𝐴𝐷 is the weighted average distance for an exit point;

 𝐶𝐴𝑃 is the planned allocation capacity at an entry point;

for the purpose of the calculation in letter b), the delivery points are combined into 12 exit points, determined on the basis of the 6 withdrawal areas and 2 clusters depending on the distance from the national network (less/more than 15 kilometres); the distance from each entry point to each group of delivery points is calculated as the sum of:

- a national network distance, calculated as the average distance from the entry point to the main interception and offtake points (PIDI) of the group of delivery points, weighted for each PIDI according to the planned allocation capacities at each PIDI underlying point.

- a regional network distance, calculated as the average - for the PIDIs for the delivery points group - of the PIDI-delivery point distances, weighted by the planned allocation capacity at the delivery points;

c) the impact of the cost for each entry point and each exit point is calculated using the following formulae:

𝑊_, 𝐶𝐴𝑃 ∙ 𝐴𝐷

∑ 𝐶𝐴𝑃 ∙ 𝐴𝐷

𝑊_, 𝐶𝐴𝑃 ∙ 𝐴𝐷

∑ 𝐶𝐴𝑃 ∙ 𝐴𝐷

where:

 𝑊_, is the impact of the cost for a given entry point;

 𝑊_, is the impact of the cost for a given exit point;

Annex A

In case of discrepancies between the information published on the Italian version and the information published on the English version of this document, the Italian version shall prevail.

d) the part of the revenues relating to transmission services to be recovered through the transmission tariffs applied to the capacity at each entry point and for each exit point is calculated using the following formulae:

𝑅 𝑊_, ∙ 𝑅_∑

𝑅 𝑊_, ∙ 𝑅_∑

where:

 𝑅 is the part of the revenues relating to transmission services to be recovered through the transmission tariffs applied to the capacity at an entry point;

 𝑅 is the part of the revenues relating to transmission services to be recovered through the transmission tariffs applied to the capacity at an exit point;

 𝑅_∑ is equal to 28% of the revenues relating to transmission services to be recovered through the transmission tariffs applied to the capacity;

 𝑅_∑ is equal to 72% of the revenues relating to transmission services to be recovered through the transmission tariffs applied to the capacity;

e) the resulting values pursuant to letter d) are divided by the planned allocation capacity at each entry point and each exit point using the following formulae:

𝑇 𝑅

𝐶𝐴𝑃

𝑇 𝑅

𝐶𝐴𝑃 where:

 𝑇 is the pre-adjustment charge at an entry point;

 𝑇 is the pre-adjustment charge at an exit point;

f) compared with the values as resulting from previous letter e):

i. a single-entry charge at a national level is calculated from the specific entry charges;

ii. a single exit charge at a national level is calculated from the specific exit charges;

iii. a single exit charge at a national level is calculated from the specific exit to withdrawal area charges;

g) compared with the values resulting from letter f), i. and ii., a 50% discount is applied to the entry from storage charge and the exit to storage charge;

Annex A

In case of discrepancies between the information published on the Italian version and the information published on the English version of this document, the Italian version shall prevail.

h) for the purpose of calculating the entry and exit charges, two reproportioning multiplication coefficients are applied to the values resulting from the previous letters, calculated in such a way as to guarantee, respectively, the covering of the revenue 𝑅_∑ and 𝑅_∑ on the basis of the planned allocation capacities 𝐶𝐴𝑃 and 𝐶𝐴𝑃 .

16.4 Under the scope of the methodology pursuant to paragraph 16.2, the planned allocation capacity in a given tariff year is calculated as the weighted average of the planned allocation capacity in the two significant thermal years for this year. The forecast is made by the transmission businesses based on the best information available at the time the tariff proposal is presented and is subject to approval by ARERA. This forecast also includes the forecasts relating to the following allocations:

a) the infra-annual capacity, taking into account the reproportioning on an annual basis as well as the level of the multiplication coefficients reported in Table 5;

b) the interruptible capacity, taking into account the discount applied pursuant to Article 15.