The proposal sets out that transmission tariff is set for a four-year period from January 1, 2009, to December 31, 2012, and the average transmission tariff will increase by 6% from January 1, 2009.
The proposal does not make any change to the method of calculating the regulated asset base, forecast E5.93 billion as of January 1, 2009, and rate of return on assets is maintained at 7.25%, which is the real rate before tax.
Included in the proposal are recommendations for the simplification of the tariff structure by reduction of balancing zones from four to two, comprising the North and South zones.
After the 2009-12 period, 50% of any productivity gains above the productivity target included in the tariff will be retained by GRTgaz, the balance being returned to users of GRTgaz’s transmission system over the next tariff period.
This proposal has been submitted by the Energy Regulatory Commission (CRE) for approval by the French government, which has begun consultations with stakeholders. GDF Suez and GRTgaz will both submit their views in the government consultation process. The ruling is expected to be made by September 18, 2008.
