Tariffs Forward Flow

Capacity tariffs: BBL Forward Flow (FF)

BBLC charging methodology applies to all available non-exempt capacity sold under BBL Company´s GT&Cs. The charges for all FF capacity products are derived from the following components:

RP = FF x D x I
FF = BP x CF x DF x RP*
D = M x S

Where:
RP = reserve price in €/kWh/h/product period
FF = fixed fee component in €/kWh/h/product period
D = duration component for non-yearly capacity products
I = indexation factor to adjust the base price to the current price level
BP = base price in €/kWh/h/product period expressed in the 2006 price level
CF = competitive forces factor for the yearly capacity product
DF = discount factor for individual yearly reserve prices of Y+1 to Y+15
RP* = risk premium
M = multiplier for non-yearly capacity products
S = seasonal factor

The base price (BP) is what used to be the original fixed fee (€ 6,868/kWh/h/year). The base price is expressed at 2006 price level and subject to annual indexation per gas year.
The Index (I) will be set for each auction year. BBLC will publish the Index accounting for a whole calendar year at the end of each calendar year. 
The competitive forces factor (CF) enables BBLC to adjust the tariffs for each capacity product in order to reflect competitive market circumstances.
The discount factor (DF) allows for a discount to reserve prices of yearly capacity products in the future.
The risk premium allows BBLC to cover all risks related to under- or over-recovery of revenues.
The seasonal factors enable BBLC to take demand fluctuation within the year into account and are determined for each month separately.
The multipliers for non- yearly capacity products are set to ensure sufficient revenues for an economic and financial stable company result and to enable BBLC to react to competitive forces from suppliers of comparable services for specific capacity product.
The duration component for non- yearly capacity products:

  • Quarterly capacity product:= Days of Quarter/ Days of Year
  • Monthly capacity product= Days of Month/ Days of Year
  • Daily capacity products Day/Days of Year
  • Within-day capacity product= Remaining hours of day/ Days of Year (The within day tariff  depends on the time when product is bought and leads to a tariff proportionally dependent on the remaining hours of the day)

The reserve prices for interruptible capacity products will have an ex-ante discount of 10% to the standard firm products conform NC TAR article 16. Since BBLC has no experience with selling interruptible capacity, it is not reasonable to estimate the probability of interruption based on historical flow data. Moreover, since BBLC is a merchant interconnector without baseload capacity, also expected flow data are not suitable to estimate the probability of interruption. BBLC expects a higher probability of interruption than 0% based on historical flow data. Therefore, the discount is set on 10%, until further notice.

BBL Company applies following reserve prices:

Product BBLC tariff FF 2019/2020
Annual (in €/kWh/h/year)   ~ € 8,809
Quarterly (in €/kWh/h/quarter) Q4 2019:
Q1/2/3 2020:
~ € 1,770
~ € 2,20
Monthly (in €/kW/h/h/month) ⃰ Oct. - Dec. 2019:
Jan. - Sep. 2020:
~ € 0,59
~ € 0,73
DA/WD (in €/kWh/h/d)* Oct. - Dec. 2019:
Jan. - Sep. 2020:
~ € 0,0192
~ € 0,024
Published tariffs are based on: 2019 2020
Base Price € 6,868/kWh/h/year € 6,868/kWh/h/year
Indexation  1,2 1,2044
Seasonality Factor 1 1
Competitive Forces Factor 0,852 1,065
Mulitiplier 1 1
Discount Factor n/a n/a
Risk Premium n/a n/a

Variable costs BBL Forward Flow

For BBL shippers any use of forward capacity results in a share of electricity costs used to power the electrically driven compressors at Anna Paulowna.  In addition, a small amount of fuel gas is consumed in the gas heaters in Bacton  and shippers are required to provide their share.

Each GTC shipper who purchases BBL capacity under CAM from the 1st of November 2015 shall pay a fixed commodity charge based on its actual use of its BBL capacity.

Since the commodity charge largely depends on future gas & electricity tariffs as well as actual BBL flows; BBL will have annual reviews to potentially adjust the applicable commodity charge.

At the end of each calendar year BBL Company will publish the new commodity charge, which applies for the following calendar year. This calculation is based on historical flow data, historical electricity and fuel gas use and the forecasted electricity and gas tariffs for the coming calendar year.

For the period 1st December 2017 - 30th September 2019 the Commodity Charge is 0.109 Euro/MWh, which covers Fuel Gas as well as Electricity costs and is charged as used.

The following formula is used to determine the energy costs:

E = A x Pe + B x Pg

Where:
E = variable fee to cover the energy costs in €/MWh
A = constant
Pe = electricity price in €/MWh
B = constant
Pg = gas price in €/MWh
E = € 0.109/MWh
A = 0.0026
Pe = € 41/MWh *
B = 0.00057
Pg = € 18/MWh *

* price level 2017, prices have not been changed since 2017

Note: Because of the risk of design and equipment no right may be derived from these prices