ACER assesses the gas transmission tariff methodology proposed for Austria
What is the report about?
Today, ACER releases its report on the Austrian gas transmission tariffs proposed for 2025 by E-Control, the National Regulatory Authority (NRA) of Austria.
The proposed methodology takes into account the changes in network patterns resulting from the 2022 energy crisis. To address these challenges, E-Control proposes:
- Adopting a capacity weighted distance methodology as the reference price methodology.
- A split of revenue between entries and exits of 27/75.
- Introducing a cap on domestic exit points to mitigate potential tariff increases, alongside offering 50% discounts at storage exit points.
What does ACER recommend?
ACER analysed the information provided by E-Control and assessed the compliance of the proposed methodology against the requirements of the Network Code on Harmonised Transmission Tariff Structures (NC TAR). Based on this analysis, ACER provides the following recommendations to the NRA:
- Evaluate the network topology and use patterns. For instance, the NRA should take into account the distance gas flows need to cover to supply different network points into the methodology.
- Explore the methodologies that best align with the network’s characteristics and usage, including selecting appropriate cost drivers and other instruments such as flow scenarios.
- Compare the results of the Capacity Cost Allocation (CAA) assessment to identify the most suitable methodologies for the Austrian transmission network. The NRA should investigate whether high CAA outcomes indicate potential cross-subsidisation between intra-system and cross-system network usage.
What are the next steps?
E-Control adopted the motivated decision on the reference price methodology on 31 May 2024, after receiving preliminary input from ACER.
Following the publication of this report, E-Control shall consider ACER’s recommendations in its next tariff consultation, scheduled for completion by the end of 2024.
Access all ACER reports on national tariff consultation documents.