8th December 2017 | Posted by: Daniel Birkett | Industry News

The Tariff Network Code, a new EU regulation is to come into effect in October 2019.

The Tariff Network Code is a regulation which will be implemented on the 1st October 2019 which all EU nations must adhere to. The aim of the new regulation is to encourage market integration, improve supply security Tariff Network Code and promote interconnection between gas networks.

Despite being a competitive market unlike some other European nations, the UK market will still be impacted by some of the proposed changes which are outlined below.

Proposal Impact
Move from Long Run Marginal Cost to Capacity Weighted Distance Changes to the methodology the National Gas Grid uses to set charges
Increase the cost of short term capacity The relative costs of short term products, interruptible products and off peak products
Increase the price of interruptible capacity Will result in discounts for storage sites and interconnections
Reduce the distance for short haul arrangements Changes to arrangements which provide reduced charges for shippers which transport gas over a relatively short distance

A formal consultation is expected to take place in spring 2018 with the hope of reaching a decision in the same year to provide as much notice as possible. It is advised that customers monitor developments regarding this new regulation to determine any potential impact.

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