How the natural gas transmission tariff is applied in July in the sites of non-daily accounting?

From 19 July 2018, new natural gas transmission system service tariffs (natural gas transmission tariffs) enter into force. A natural gas seller once in a month receives an invoice and annex with detailed calculation per days regarding the applicable charge for transmission service to supply Latvian users from the transmission system operator – JSC Conexus Baltic Grid. For the seller to apply correctly the charge for the transmission service in July for those users with non-daily accounting [1], the seller calculates the proportional division of natural gas consumption of those users (consumption profile) according to the consumption from 1 – 18 July and from 19 – 31 July (tariff application periods):

  • Step one – the used daily capacities at the exit point for supply of Latvian users are summed up individually per tariff application periods by means of the information shown in the invoice of JSC Conexus Baltic Grid.
  • Step two – by means of data on users’ daily consumption having daily accounting at disposal of the seller, consumption data of all these users are summed up per tariff application periods.
  • Step three – data are divided for the consumption of those users having daily accounting to obtain a sufficiently accurate calculation of users’ consumption profile. This means that the results of calculation for the relevant tariff’s application periods from step two are subtracted from the results of calculation for the relevant tariff’s application periods from step one.
  • Step four – determination of consumption profile. The users’ consumption data for tariff’s application periods calculated in step four are referred to the total sum of these consumption data thus obtaining the proportional division.
  • Step five – users’ consumption profile is used in the settlements for each user  having non-daily accounting. User’s consumption per tariff application periods is calculated applying the obtained proportional division (step four) to user’s monthly consumption.  Accordingly, the natural gas transmission tariff for the supply of Latvian users – 1.99 EUR/MWh [2] is applied to the consumption for the first tariff application period, but 2,13 EUR/ MWh [3] is applied for the second tariff application period.

According to the Energy Law [4], the price for natural gas is defined by the natural gas market players by mutual agreement. So, if the contract between the natural gas seller and user prescribes other payment procedure, the natural gas price defined in the contract shall be applied in the settlements.

To get more information, please contact the Regulator calling +371 67097289 or writing to [email protected].

[1] Non-daily accounting place – natural gas accounting place where no telemetry system is installed for remote reading of operative data of commercial accounting measuring instruments and data of commercial accounting measuring instruments are read more seldom than once per 24 hours.

[2] Decision No. 54 of Regulator as of 30 May 2017        
[3] Decision No. 69 of Regulator as of 18 June 2018        
[4] Energy Law section 106 part three

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