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Application of an entry-exit tariff model to the gas transport system in Spain

Author

Listed:
  • Alonso, Alejandro
  • Olmos, Luis
  • Serrano, Miguel

Abstract

Under an entry-exit gas tariff system, reservation of capacity is split into entry capacity, to transport gas from the injection points to a virtual balancing point, and exit capacity, to transport gas from the balancing point to the exit points in the system. Entry-exit tariff for gas transport systems have been recommended by the 3rd EU Energy Package, since they are cost reflective, facilitate gas trade and can provide signals for the location of gas injections or off-takes. The advisability of applying an entry-exit tariff system is discussed in this paper. Apart from this, authors propose an entry-exit tariff model and apply it to compute charges for the Spanish gas transport system in 2009. Results produced by the model are presented as coefficients which should multiply the current postal transport tariff. The paper concludes that entry-exit tariffs would be useful location signals which would result in a better use of the gas transport system in Spain. In those cases where demand exceeds available capacity, as it occurs at the congested connection with France, entry-exit tariffs could be supplemented by capacity charges at entry points resulting from auctions.

Suggested Citation

  • Alonso, Alejandro & Olmos, Luis & Serrano, Miguel, 2010. "Application of an entry-exit tariff model to the gas transport system in Spain," Energy Policy, Elsevier, vol. 38(9), pages 5133-5140, September.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:9:p:5133-5140
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    Citations

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    Cited by:

    1. Bermúdez, Alfredo & González-Díaz, Julio & González-Diéguez, Francisco J. & González-Rueda, Ángel M., 2016. "Gas transmission networks in Europe: Connections between different entry-exit tariff methodologies," Applied Energy, Elsevier, vol. 177(C), pages 839-851.
    2. Iweta Opolska, 2016. "Liberalisation of the gas industry in Europe.Does the European Union support efficacious regulatory solutions?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 44.
    3. Brandão, António & Soares, Isabel & Sarmento, Paula & Resende, Joana & Pinho, Joana, 2014. "Regulating international gas transport: Welfare effects of postage stamp and entry–exit systems," Energy, Elsevier, vol. 69(C), pages 86-95.
    4. Mosácula, Celia & Chaves-Ávila, José Pablo & Reneses, Javier, 2018. "Designing natural gas network charges: A proposed methodology and critical review of the Spanish case," Utilities Policy, Elsevier, vol. 54(C), pages 22-36.
    5. António Brandão & Joana Pinho & Joana Resende & Paula Sarmento & Isabel Soares, 2016. "Welfare effects of unbundling under different regulatory regimes in natural gas markets," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 15(2), pages 99-127, August.
    6. Lars Schewe & Martin Schmidt & Johannes Thürauf, 2020. "Structural properties of feasible bookings in the European entry–exit gas market system," 4OR, Springer, vol. 18(2), pages 197-218, June.
    7. Grimm, Veronika & Grübel, Julia & Schewe, Lars & Schmidt, Martin & Zöttl, Gregor, 2019. "Nonconvex equilibrium models for gas market analysis: Failure of standard techniques and alternative modeling approaches," European Journal of Operational Research, Elsevier, vol. 273(3), pages 1097-1108.
    8. Veronika Grimm & Lars Schewe & Martin Schmidt & Gregor Zöttl, 2019. "A multilevel model of the European entry-exit gas market," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 89(2), pages 223-255, April.
    9. Mosácula, Celia & Chaves-Ávila, José Pablo & Reneses, Javier, 2019. "Reviewing the design of natural gas network charges considering regulatory principles as guiding criteria in the context of the increasing interrelation of energy carriers," Energy Policy, Elsevier, vol. 126(C), pages 545-557.
    10. Bermúdez, Alfredo & González-Díaz, Julio & González-Diéguez, Francisco J. & González-Rueda, Ángel M., 2013. "Gas transport networks: Entry–exit tariffs via least squares methodology," Energy Policy, Elsevier, vol. 63(C), pages 252-260.
    11. Fodstad, Marte & Midthun, Kjetil T. & Tomasgard, Asgeir, 2015. "Adding flexibility in a natural gas transportation network using interruptible transportation services," European Journal of Operational Research, Elsevier, vol. 243(2), pages 647-657.
    12. Böttger, T. & Grimm, V. & Kleinert, T. & Schmidt, M., 2022. "The cost of decoupling trade and transport in the European entry-exit gas market with linear physics modeling," European Journal of Operational Research, Elsevier, vol. 297(3), pages 1095-1111.
    13. Bergantiños, Gustavo & González-Díaz, Julio & González-Rueda, Ángel M. & P. Fernández de Córdoba, María, 2017. "Loss allocation in energy transmission networks," Games and Economic Behavior, Elsevier, vol. 102(C), pages 69-97.
    14. Opolska, Iweta, 2017. "The efficacy of liberalization and privatization in introducing competition into European natural gas markets," Utilities Policy, Elsevier, vol. 48(C), pages 12-21.

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