Energy | Gas | Technical Report
Sector coupling and the evolution of the gas sector : new tariffication principles for gas infrastructure?
02 February 2021
BY: Alberto Pototschnig, CERVIGNI Guido, Ilaria Conti
In line with the EU vision for a carbon neutral economy by 2050, the role of gas in the energy mix is expected to change considerably over the coming years – not only will gas volumes be shrinking, but more profoundly, gas generation and consumption will be transformed. Such changes have wide reaching implications for the sector, including the suitability of infrastructure and allocation of its costs to different uses. The current EU tariff model of charging on the basis of consumption well supported the transition from a vertically integrated organisation of the gas industry, to a single liberalised market. However, if the network persists with this approach the recovery of its costs will be based on charges on an increasingly small number of consumers. Moreover, as regions decarbonise at different speeds or choose different energy pathways, these dynamics will develop differently across the EU. Redesigning the tariff charging methodologies can avoid these potentially unfair allocations of costs. This Report explores different tariff methodologies to assess their advantages and drawbacks within the context of the expected new conditions of the gas sector, as well as the potential policy implications.
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