What is the procedure for the application of the natural gas transmission tariff at non-daily metered sites in July?

Natural Gas

On 19 July 2018 new natural gas transmission system service tariffs (natural gas transmission tariffs) entered into force. A natural gas trader receives a monthly invoice from the transmission system operator – JSC “Conexus Baltic Grid”, as well as an Appendix with detailed calculation of daily charges applicable for the transmission service to supply users in Latvia. For a trader to correctly apply the charge for the transmission service in July to the users with non-daily metered sites1, the trader shall calculate the proportional allocation of the natural gas consumption by these users (consumption profile) according to the consumption levels from July 1 to July 18 and from July 18 to July 31 (tariff application periods):

  • First step – using the information from JSC “Conexus Baltic Grid” invoice, daily capacities used at an exit point to supply Latvian users shall be summed separately for the respective tariff application periods.
  • Second step – using a trader’s data about the daily consumption of users whose sites are metered daily, the consumption data of all these users shall be summed according to tariff application periods.
  • Third step – for the calculation of the user consumption profile to be sufficiently precise, data shall be separated about the consumption of those users whose sites are metered daily. This means that the results of the calculation in the second step for the corresponding tariff application periods shall be deducted from the results of the calculation obtained in the first step according to tariff application periods.
  • Fourth step – determining the consumption profile. The user consumption data for the respective tariff application periods calculated in the third step shall be divided by the total sum of these consumption data, obtaining a proportional allocation.
  • Fifth step – the user consumption profile shall be used for settlements with all users whose sites are metered non-daily. By applying the obtained proportional allocation (fourth step) to the monthly consumption of a user, the user’s consumption in the respective tariff application periods shall be calculated. Respectively, a natural gas transmission tariff of 1.99 EUR/MWh2 for the supply of Latvian users shall be applied to the consumption in the first tariff application period, while 2.13 EUR/MWh3 shall be applied in the second tariff application period.

In accordance with the Energy Law4, the natural gas price shall be determined by the natural gas market participants by mutual agreement. Therefore, if the agreement between a natural gas trader and user provides for another settlement procedure, the natural gas price specified in the agreement shall be applied during the settlements.

For more information, please contact the Regulator by phone +371 67097289 or e-mail janis.negribs@sprk.gov.lv.

1 Non-daily metered site – natural gas metering site where a telemetry system for automated remote reading of operational data of commercial meters has not been installed and commercial meter data are read less frequently than once a day.

2 Regulator’s decision No 54 of 30 May 2017

3 Regulator’s decision No 69 of 18 June 2018

4 Section 106(3) of the Energy Law