JSC Conexus Baltic Grid presents the new draft transmission tariff

Today JSC Conexus Baltic Grid presented the new draft transmission tariff to Public Utilities Commission (Regulator) that is developed in accordance with the situation in Latvian natural gas market.

In accordance with Regulator’s Natural gas transmission system tariffs calculation methodology section 66, the system operator till 1 February of each year presents a draft tariff and the appropriate costs for 12 months, information about the capacities reservation revenues planned during the tariff reporting cycle, and information for the revenues of previous calendar year from capacities reservation service and total actual transmission system capacities reservation costs to Regulator for evaluation. JSC Conexus Baltic Grid presented the new draft tariff already at the end of October to be prepared timely for the new injection season in Inčukalns Underground Gas Storage (Inčukalns PGK).

When compared with the previous tariff cycle, the presented draft transmission system tariff anticipates an increase of costs that is related with the amendments adopted on 18 May 2018 in Cabinet Regulations No. 312 “Procedures for the Supply of Energy Users and Sale of Heating Fuel During Declared Energy Crisis and in Case of Endangerment to the State” of 19 April 2011, on the base of which a transmission system operator shall ensure that from end of natural gas injection season till March 1 of the following year such amount of active natural gas in Inčukalns UGS that is not less than 3160 thous. MWh. 

In 2018, JSC Conexus Baltic Grid organized four auctions regarding the provision of availably of natural gas in the interconnection of transmission system with the storage for the storage cycle 2018/2019 to ensure the implementation of the obligation determined in the Cabinet Regulations. The auction provisions prescribe the obligation of sellers to store the volume of active natural gas from the beginning of removal season till 1 March 2019, ensuring the daily required capacity for removal of natural gas from Inčukalns UGS in case of an energy crisis.

The draft tariff prescribes that the charge for transmission and storage services for households consuming natural gas for preparing food increased by 0.04 EUR/monthly. But charge for transmission and storage service to those who use gas for heating, heating of hot water increases by 1.50 EUR/monthly.

At the same time with the draft transmission system tariff, JSC Conexus Baltic Grid in accordance with the Regulator’s decision No. 47 “Regarding the natural gas storage tariffs of the joint-stock company “Conexus Baltic Grid” as of 26 April 2018 submits also the values of capacity product tariffs to the Regulator for storage cycle 2019/2020 within the framework of the present tariff reviewing cycle. This anticipates the maximum value of grouped capacity product tariff applicable to storage cycle 2019/2020 to be set to 3, 68494 EUR/MWh and the minimum value of market product value applicable to storage cycle 2019/2020 is set to 1,37000 EUR/MWh.

JSC Conexus Baltic Grid is the natural gas market player responsible for Latvian market zone who is in charge of operation, servicing, security and connection of the energy transmission system with transmission system of other countries.