Transmission tariffs
Energinet.dk determines its tariffs pursuant to the Danish Natural Gas Supply Act. The tariffs are based on the costs relating to the transmission system and include operating expenses and capital costs. Energinet.dk is regulated by a "cost-of-service" principle and therefore is under an obligation to have no profit or loss from the tariffs. Should the tariffs one year be too high, the shippers will be compensated via next year's tariffs.
The Danish Energy Regulatory Authority monitors our tariffs by comparing them with those applicable in similar markets in the EU. According to the surveys, our tariffs have so far been lower than the average EU tariffs.
Emergency-supply tariffs
Under the Natural Gas Supply Act, Energinet.dk must provide security of supply in the Danish natural gas market. We live up to this obligation by reserving capacity in the underground natural gas storage facilities at Stenlille and Lille Torup and in the Syd Arne submarine pipeline in the North Sea.
The Natural Gas Supply Act also stipulates that all shippers in the Danish market must contribute to the security of supply, and that is why we have introduced emergency-supply tariffs.
Capacity/volumes
The capacity tariff makes up the largest part - 75 per cent - of our total transmission revenue, volume payment representing the remaining 25 per cent. The reason for this distribution is that we wish the tariffing to essentially reflect the cost structure. Providing transmission capacity is the highest cost element in transmission of gas, and it is therefore only natural that the capacity charge should make up the greater part of the transmission charge.
At the same time, capacity tariffs provide sound incentives to use the transmission system efficiently to the benefit of all users. Capacity charges also make up the greatest part of other European transmission companies’ revenues.
The tariff level is based on the expected capacity orders and shipped volumes.
Entry and exit – Transmission
The transmission system is based on an entry-exit model involving two entry-exit points, two entry points and one national exit zone. The same tariff applies to all entry and exit points. There are entry points at Nybro, Dragør and Ellund. That is why, today, shippers need only buy capacity in or out of the system. This makes the transmission system one of the most simple and flexible in Europe.
In the latest update of Rules for Gas Transport, Energinet.dk has added a national biogas entry point to the system. It will be possible to reserve capacity at the point not later than three months after the first shipper has announced his interest in using the point.
Entry and exit tariffs are the same, which reflects the fact that even supply – same size input and output – takes up the same volume of capacity in the transmission system and therefore costs the same. Uneven supply, which utilises the system to a lesser degree, means higher payment at the exit point for each unit transmitted because the capacity utilisation is lower than at the entry point.
Entry and exit conditions - Emergency supply
Generally, all consumers in Denmark are "protected" by law against emergency-supply situations. All consumers therefore contribute to the payment for emergency preparedness in that Energinet.dk levies an emergency-supply tariff on all natural gas transported in Denmark. The payments are effected via the gas suppliers.
The major consumption sites may opt not to be 'insured' against emergency-supply situations. Energinet.dk implements a call for interruptible emergency supply, and the winning consumption sites may conclude agreements on interruptible emergency supply direct with Energinet.dk.