Draft Rules on Methodologies for Transmission Tariffs and Defining of Natural Gas Transmission System Connection Fees

The Rulebook ensures the implementation of the Commission Regulation (EU) 2017/460 of March 16, 2017, establishing a network code on harmonized transmission tariff structures for gas. The Rulebook's goal is to enable a fair and economical tariff regulation procedure in the natural gas sector, introduce market mechanisms, and establish clear conditions of access to the natural gas transmission system. It also aims to create prerequisites for the integration of gas markets, promote the interconnection of gas transmission systems, and secure defining of a fair natural gas transmission system connection fee. Key definitions in the Rulebook include homogenous group of points, interconnector, transmission system user, kWh, multiplier, non-annual standard capacity product, uninterruptible capacity, operator, optimum solution, interruptible capacity, connection, variable price approach, reference price, regulatory year, regulatory period, regulated assets, and reserve price. The Rulebook outlines the principles of tariff methodology, including the calculation of regulatory required revenue, distribution of revenue to tariff elements, and determination of tariff rates for gas transmission. It also addresses the use of transmission system fee, fee for connection to transmission system, and procedures for tariff calculation. The Rulebook applies to transmission system operators and aims to create non-discriminatory conditions and prevent unjustified subsidization between different system users. It provides a regulatory framework for defining transmission tariffs in a manner that is understandable to transmission system users, enabling stable and predictable business conditions for transmission system operators. The Rulebook's Annex 1 provides additional information on regulated assets, including tables on total operating business costs, operating costs of business for the years of the regulatory period, depreciation of regulated assets, and elements for determining rate of return on capital. The Rulebook also references sources used in its development. Overall, the Rulebook provides a comprehensive framework for regulating transmission tariffs and defining natural gas transmission system connection fees in Bosnia and Herzegovina, aligning with EU regulations and promoting a fair and efficient gas transmission sector.