Network charge

The network charge is the amount to be paid by the transmission system user for the use of the natural gas transmission system and is calculated on the basis of the tariff rates of the network charge and on the extent of use of this system in accordance with the Legal Act on the methodology for determining network fees for the natural gas transmission system.

The network charge for the natural gas transmission system is intended to cover the eligible costs of performing the service of general economic interest of the transmission system operator.

The gas TSO with the approval of the Energy Agency determines the network charge for the natural gas transmission system.

Regulatory framework

The regulatory framework is a determination of the planned eligible costs and resources to cover the eligible costs of the natural gas transmission system operator (gas TSO). The regulatory framework is established by the gas TSO in accordance with Legal Act on the methodology for determining the regulatory framework of the natural gas system operator (unofficial translation).

The eligible costs of the distribution system operator consist of:

• controlled operation and maintenance costs
• uncontrolled operating and maintenance costs
• depreciation costs
• the regulated return on assets

Resources to cover eligible costs are the network charges and other revenues. In determining the resources to cover eligible costs, the derogations from the regulatory framework of previous years resulted as a surplus or deficit of network charges, will be taken into account.

By using the method of regulated annual income and regulated network charges the gas TSO determines the regulatory framework in such a way that with the planned annual income for the regulatory period, the surplus from network charges and the planned deficit from network charges limited to the planned depreciation costs ensures covering the eligible costs for the regulatory period and the corresponding deficit of the preceding years.

The gas TSO sends the Energy Agency the request for consent to the regulatory framework, the network charge tariffs, and tariff rates for other services for a given regulatory period. In the approval procedure, the Energy Agency evaluates the compliance of the proposed eligible costs, resources for their covering, and network charges submitted in the request with the applicable methodologies.

The current regulatory period for the gas TSO lasts from 1 January 2019 to 31 December 2021.
Network charge tariffs for the current regulatory period are published in Legal Act determining tariff rates for network charges for the natural gas transmission system.