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European regulators compare tariffs and efficiency of gas network operators

ERGEG, the European Regulators Group for Electricity and Gas, has studied the tariffs and efficiency of European national gas network operators. The aim of the survey is to support the European regulators in determining or assessing tariffs and to provide further insight into the underlying costs of gas transmission.

The report Benchmarking of Transmission Tariffs compares transportation tariffs and balancing penalties prevailing in a number of European countries. The transportation tariffs of Gas Transport Services (GTS) appear to be relatively low in a large number of cases, though not in all instances reviewed. On the other hand, the balancing penalties imposed by GTS are on average relatively high. The report also looks into the causes for the differences found.

The research report International Benchmarking and Regulation of European Gas Transmission Utilities reviews possible methods for comparing the efficiency of European national gas network operators. By way of illustration, some of the methods outlined have been applied to a group of European and US gas network operators. As regards data used, benchmarking variables as well as benchmarking techniques, the report draws a number of conclusions on comparability, thus providing a starting point for possible benchmarking efforts by ERGEG in future.

Through its Office of Energy Regulation (DTe), the Netherlands Competition Authority (NMa) actively participates in ERGEG. For instance, it takes part in the Gas Regional Initiatives with the objective of furthering the establishment a North-West European gas market.

 

Attachments

C06-GWG-31-05 Gas Tariffs Benchmarking Report (PDF - 904.4 KB) ERGEG Cost Benchmark Final Report (PDF - 1.69 MB)