Draft code amendment decision regarding the discount for interruptible capacity

The Netherlands Authority for Consumers and Markets (ACM) has drawn up a draft decision for amending the discount for interruptible capacity to 95.41%. The amended discount percentage follows from the fact that, in its calculations thereof, ACM took into consideration the recent interruptions. This is an amendment to the Tariff Code Gas.

With this draft code amendment decision, ACM fulfills the consultation requirement of article 28 NC-TAR. This article requires ACM to consult each year the multipliers, seasonal factors, the discount for LNG facilities, and the discount for interruptible capacity. ACM proposes to leave the multipliers, seasonal factors, the discount for LNG facilities unchanged.

Over the summer of 2022, demand for natural gas transports from west to east rose substantially due to the fact that gas flows from Russia had virtually come to a halt. As a result, a large spread emerged between, on the one hand, the trading platforms in Belgium and the UK, and, on the other hand, the trading platforms in the Netherlands (TTF) and Germany. This meant that, during the summer of 2022, it became attractive for natural gas traders to book a considerable amount of interruptible entry capacity on the virtual interconnection point BENE. As a consequence, both the booked interruptible capacity as well as the number of interruptions went up considerably during the 2022 gas year. Application of the formula in Article 16, paragraph 2 of the NC-TAR will thus lead to a substantial increase in the discount percentage for interruptible capacity.

ACM sets one discount percentage for all entry and exit points. This is in line with the agreement on NC-TAR decision (hereafter: the agreement) on 10 December 2018 with a significant number of market participants, including representative organizations. This agreement ends after the year 2024. For the tariffs of 2025, ACM will reconsider whether it wants to determine multiple discount percentages for interruptible capacity depending on the entry and exit points.

If there are differences between the Dutch version and the English version, the Dutch version will prevail.

Can I express a view on the draft decision?

You can express a view on the draft decision, when you are considered an interested party by Dutch court. Starting from the day of publication in the Dutch Government Gazette, you have exactly 12 weeks to express a written view.