Sign In
Published: 11/27/2017. Updated:

Baltic States’ and Finnish NRAs’ representatives signed the guidelines for pricing of the services of natural gas transmission

In implementing the regional action plan, on 27th November, 2017, the representatives of Baltic States’ and Finnish NRAs’ signed the guidelines for pricing of the services of natural gas transmission.

In the short-term period of 2019–2020, the pricing model for entry and exit points would be applicable to the gas market of the Baltic States that includes Estonia, Latvia, and Lithuania. In an effort to create equal competitive conditions to all the suppliers in the region, the same entry tariffs would be applied to every entry point in the region. In addition to that, the gas transmission system operators (TSOs) are obligated to agree on the mechanism for Inter TSOs Compensation within the region.

In the long-term period, i.e. from 2020 and beyond, the same entry tariffs for transmission of natural gas would be applicable to entry points in the entire Baltic-Finnish region: they would be calculated by applying the most optimal methodology, chosen from three alternatives (postage stamp; capacity weighted distance; and matrix).

The legal and methodological basis for short-term solution implementation should be prepared and agreed till July 2018. The implementation of regional guidelines for pricing of the services of the transmission of natural gas will allow to increase the liquidity of natural gas trade in the region and create equal competitive conditions for suppliers importing natural gas from different import sources, which should lead to competitive pricing of natural gas for all the users in the region and would allow more effective utilisation of the natural gas infrastructure in the region.