The price reduction contradicts a market trend of reduced internal gas consumption combined with declining transit to adjacent systems. Capacity reservations and volumes transported are both predicted to be around 15% lower in the coming gas year, just as the gas year 2011-12 displayed declining activity in the transmission system.
Tariff development since the gas year 2005-06
When gas tariffs are reduced rather than increased, it is largely due to the extraordinary return of a considerable over recovery accumulated in the previous financial years. Tariffs would have been approximately 20% higher without the return of excess revenues carried over from previous periods.
Other primary contributing factor in maintaining low tariffs is a significant reduction in both capital and operational expenditures.
New assets under construction have only minor impact on the tariff cost base prior to their commissioning from October 2013.
Update of Rules for Gas Transport with new options for shippers
The new tariffs are announced today together with an update of the market rules – Rules for Gas Transport 12.0
Reintroduces capacity contracts on a yearly basis
In the updated set of rules Energinet.dk reintroduces capacity contracts on a yearly basis. The yearly capacity contracts have been suspended for the last year.
The shippers will also be able to get quarterly and monthly capacity contracts by participating in auctions on the capacity available at the interconnection points at Ellund – towards Germany, and Dragør – towards Sweden. The auctions will be held in September for contracts starting on 1 October 2012.
10 % of the best available capacity at each point/direction will be saved for daily products. Shippers can order weekly products combining 6 daily products. The coming gas year the price for daily products will be significantly reduced compared to the past gas year.
In addition to the capacity offered by auction the capacity the other points in Denmark will be offered on first-come-first serve basis.