Charging methodology Reserve Prices

BBLC charging methodology applies to all available non-exempt capacity sold under BBL Company´s GT&Cs. The charges for all capacity products are derived from the following components:

RP = FF x D x I
FF = BP x CF x DF x RP*
D = M x S

Where:
RP = reserve price in €/kWh/h/product period
FF = fixed fee component in €/kWh/h/product period
D = duration component for non-yearly capacity products
I = indexation factor to adjust the base price to the current price level
BP = base price in €/kWh/h/product period expressed in the 2006 price level
CF = competitive forces factor for the yearly capacity product
DF = discount factor for individual yearly reserve prices of Y+1 to Y+15
RP* = risk premium
M = multiplier for non-yearly capacity products
S = seasonal factor

The base price (BP) is what used to be the original fixed fee and is subject to annual indexation per gas year.
The Index (I) will be set for each auction year. BBLC will publish the Index accounting for a whole calendar year at the end of each calendar year.
The competitive forces factor (CF) enables BBLC to adjust the tariffs for each capacity product in order to reflect competitive market circumstances.
The discount factor (DF) allows for a discount to reserve prices of yearly capacity products in the future.
The risk premium allows BBLC to cover all risks related to under- or over-recovery of revenues.
The seasonal factors enable BBLC to take demand fluctuation within the year into account and are determined for each month separately.
The multipliers for non-yearly capacity products are set to ensure sufficient revenues for an economic and financial stable company result and to enable BBLC to react to competitive forces from suppliers of comparable services for specific capacity product.
The duration component for non-yearly capacity products:

• Seasonal capacity product= Days of Season / Days of Year
• Quarterly capacity product= Days of Quarter / Days of Year
• Monthly capacity product= Days of Month / Days of Year
• Daily capacity product= Day / Days of Year
• Within-day capacity product= Remaining Hours of Day / Days of Year