The for the relevant Entry Point or Exit Point will equal to the Reference Price for the closest relevant Entry Point or (respectively) Exit Point adjusted in line with pro-rata relationship between the two Weighted Average Distances. Calculations within the CWD Model Proposed CWD Model for calculating Entry and Exit Capacity Base Reference Prices: The proposed CWD approach fundamentally requires three main inputs: Target or Exit Transmission Services Revenue - Revenue which is Allowed Revenue net of known Existing Contracts (EC) revenue and Interim Contracts (IC) revenue. Network Distances derived from a distance matrix for the average connecting distances on the – NTS Capacity (FCC) - FCC (by point) net of Existing Contracts (EC) capacity and Interim Contracts (IC) capacity booked to recover the target Entry or Exit Transmission Services revenue. Key steps in the CWD calculations: Capacity Calculation Exit Capacity Calculation Weighted Average (Sumproduct Exit Point FCC x (Sumproduct Entry Point FCC# x Distance (WAD) Distance to Entry Point) Distance to Exit Point) / / Sum Exit Point FCC Sum Entry Point FCC# Weighted Cost (WC) Point FCC* x WAD Exit Point FCC x WAD / / (Sumproduct Entry Point FCC* x (Sumproduct Exit Point FCC x WAD) WAD) Target Revenue by Entry Target Revenue x WC Exit Target Revenue x WC (TRP) Reference Price (RefP) Entry TRP / Entry Point FCC* Exit TRP / Exit FCC #Entry Point FCC this is Gross Entry Point FCC (not reduced by capacity associated with Existing – Contracts and Interim Contracts) *Entry Point FCC this is the Entry Point FCC net of capacity associated with Existing Contracts and – Interim Contracts. Entry Point Reference Prices are calculated in the following steps in the CWD model:
The for the relevant Entry Point or Exit Point will equal to the Reference Price for the closest relevant Entry Point or (respectively) Exit Point adjusted in line with pro-rata relationship between the two Weighted Average Distances. Calculations within the CWD Model Proposed CWD Model for calculating Entry and Exit Capacity Base Reference Prices: The proposed CWD approach fundamentally requires three main inputs: Target or Exit Transmission Services Revenue - Revenue which is Allowed Revenue net of known Existing Contracts (EC) revenue and Interim Contracts (IC) revenue. Network Distances – derived from a distance matrix for the average connecting distances on the NTS Capacity (FCC) - FCC (by point) net of Existing Contracts (EC) capacity and Interim Contracts (IC) capacity booked to recover the target Entry or Exit Transmission Services revenue. Key steps in the CWD calculations: Capacity Calculation Exit Capacity Calculation Weighted Average Distance (WAD) (Sumproduct Exit Point FCC x Distance to Entry Point) / Sum Exit Point FCC (Sumproduct Entry Point FCC# x Distance to Exit Point) / Sum Entry Point FCC# Weighted Cost (WC) Point FCC* x WAD / (Sumproduct Entry Point FCC* x WAD) Exit Point FCC x WAD / (Sumproduct Exit Point FCC x WAD) Target Revenue by (TRP) Entry Target Revenue x WC Exit Target Revenue x WC Reference Price (RefP) Entry TRP / Entry Point FCC* Exit TRP / Exit FCC #Entry Point FCC – this is Gross Entry Point FCC (not reduced by capacity associated with Existing Contracts and Interim Contracts) *Entry Point FCC – this is the Entry Point FCC net of capacity associated with Existing Contracts and Interim Contracts. Entry Point Reference Prices are calculated in the following steps in the CWD model:
Part%20II%20Workgroup%20Report%200621%20v0.13%20%28NG%20NTS%29.docx