CHAPTER V U.K. PRICING OF BUNDLED CAPACITY AND CAPACITY AT VIRTUAL INTERCONNECTION POINTS

Article 21 U.K. Pricing of bundled capacity

1. The reserve price for a bundled capacity product shall be equal to the sum of the reserve prices for the capacities contributing to such product. The reserve prices for corresponding entry and exit capacities shall be made available when the bundled capacity product is offered and allocated by means of a joint booking platform referred to in Article 37 of Regulation (EU) 2017/459.

2. The revenue originating from the bundled capacity product sales corresponding to the reserve price for such product shall be attributed to the respective transmission system operators as follows:

(a) after each transaction for a bundled capacity product;

(b) in proportion to the reserve prices for the capacities contributing to such product.

3. The auction premium originating from the bundled capacity product sales shall be attributed in accordance with the agreement between the respective transmission system operators which is subject to the approval by the national regulatory authority F1 .... In absence of such approval by [F2 the national regulatory authority, and any non-UK regulatory authorities whose approval is required, by the date three months before the start of the annual yearly capacity auctions], the auction premium shall be attributed to the respective transmission system operators equally.

[F3 4. If the approval of any non-UK regulatory authorities is required, the national regulatory authority must endeavour to cooperate with those non-UK regulatory authorities.

5. If the approval of both national regulatory authorities is required, they must cooperate with each other, and references in paragraphs 3 and 4 to “the national regulatory authority” are to be read as references to “the national regulatory authorities”.]

F4 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in Art. 21(3) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 5 para. 6(2)(a); 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in Art. 21(3) substituted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 5 para. 6(2)(b); 2020 c. 1, Sch. 5 para. 1(1)

F3 Art. 21(4)(5) inserted (31.12.2020) by The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 5 para. 6(3)(4); 2020 c. 1, Sch. 5 para. 1(1)

F4 Art. 21(4) omitted (31.12.2020) by virtue of The Gas (Security of Supply and Network Codes) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/531), reg. 1(2), Sch. 5 para. 6(3); 2020 c. 1, Sch. 5 para. 1(1)

Article 22 U.K. Pricing of capacity at a virtual interconnection point

1. The reserve price for an unbundled standard capacity product offered at a virtual interconnection point shall be calculated in accordance with either of the following approaches:

(a) calculated on the basis of the reference price, where the applied reference price methodology allows for taking into account the established virtual interconnection point;

(b) equal to the weighted average of the reserve prices, where such average is calculated on the basis of the reference prices for each interconnection point contributing to such virtual interconnection point, where the applied reference price methodology does not allow for taking into account the established virtual interconnection point, in accordance with the following formula:

Where:

• (b) P_{st, VIP} is the reserve price for a given unbundled standard capacity product at the virtual interconnection point;

• i is an interconnection point contributing to the virtual interconnection point;

• n is the number of interconnection points contributing to the virtual interconnection point;

• P_{st, i} is the reserve price for a given unbundled standard capacity product at interconnection point i;

• CAP_i is technical capacity or forecasted contracted capacity, as relevant, at interconnection point i.

2. The reserve price for a bundled standard capacity product offered at a virtual interconnection point shall be calculated as set out in Article 21(1).