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CALCULATION OF THE TARIFF


The cost of transporting gas through the Interconnector includes a capital tariff element, a contribution to operating costs, a share of fuel costs and certain additional costs.

TARIFF
The capital tariff element and contribution to operating costs is paid for at a set tariff (the same for each Shipper for the same category of Primary Capacity) irrespective of use.

FUEL COSTS
Fuel costs are 'charged' directly to Shippers using capacity. The 'cost' of fuel at any given time is apportioned amongst Shippers pro-rata to their transportation requirement at that time.

When the pipeline is in Forward Flow, each Shipper using either Forward or Reverse Flow Capacity is required to contribute a share of fuel gas used - principally by the gas turbines that power the Bacton compressors. Fuel gas consumption when the pipeline is in Forward Flow typically amounts to 0.8% of the quantity of gas transported.

When the pipeline is in Reverse Flow, any use of Forward or Reverse Flow Capacity results in a charge to cover the cost of electricity used by the electric motors that power the Zeebrugge compressors. Electricity consumption when the pipeline is in Reverse Flow is typically 1.6 kWh per MWh of gas transported. In addition, a small amount of fuel gas, typically around 0.06% of the quantity of gas transported, is consumed in the gas heaters, and Shippers are required to provide their share.

ADDITIONAL COSTS

In addition to the Tariff and the Fuel Costs, additional charges may arise through the use of Interruptible Capacity and/or through third party pressure service charges.

 


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