ACER welcomes improved Polish gas transmission tariff methodology and merger into single entry-exit zone

Today, ACER releases its report on the Polish gas transmission tariffs directed at GAZ-SYSTEM S.A., Poland’s transmission system operator (TSO), which manages the country’s two transmission systems.

The report assesses the compliance of the proposed reference price methodology (RPM) with the requirements of the EU Network Code on Harmonised Transmission Tariff structures. 

What is the proposed tariff methodology?

The Polish TSO proposes to:

• Apply a postage stamp reference price methodology with a 50-50 entry-exit split, combined with discounts for LNG terminals, biomethane producers and gas storage facilities.
• Merge the two existing entry-exit zones of the National Transmission Network (NTS) and the Transit Gas Pipeline System (SGT), the two Polish transmission systems, into a single national zone with uniform tariff rules.
• Continue recovering allowed revenues for transmission services through capacity-based tariffs only, meaning users pay based on the network capacity they book, not the volume of gas they transport.
• Maintain the current two gas sub-systems (for low-methane and high-methane gas) within the NTS.
• Keep two non-transmission services (gas pressure reduction and gas compression) in place.

What are the key findings? 

After analysing the consultation document, ACER concludes that: 

• The proposed methodology meets EU requirements on transparency, cost-reflectivity, avoidance of cross-subsidisation, non-discrimination, volume risk and the prevention of cross-border trade distortions.
• Merging Poland's entry-exit zones will create a level playing field for all network users importing gas to the country.
• The Polish TSO considered ACER’s previous recommendations (for the NTS system and the SGT system), addressing past shortcomings and developing a methodology that complies with EU rules.

What does ACER recommend? 

ACER recommends that the Polish national regulator (URE), when adopting its final decision on the proposed methodology:

• Review the low-methane subsystem and assess costs and benefits of potential measures to better align it with EU requirements.
• Carry out some additional assessments and consider technical adjustments to fine-tune the methodology.

See all ACER reports on national tariff consultation documents.