Tariff Methodology

This section underlines the main concepts of the tariff methodology under consideration. 

Step 1: 

CAPEX and OPEX allocation: 

• The cost for each service is based on a CAPEX allocation relative to the infrastructure required to deliver that service, 
• Terminal OPEX (for fuel cost for the operation of the terminal) is allocated to each service pro rata to the projected demand for each service. Fuel cost is solely allocated to the regasification service as most of the energy is consumed in the regasification process;

Step 2: 

The tariff calculation is based on a required revenue approach reflecting the investor’s required rate of return (Equity IRR). Figure a illustrates the iterative approach for deriving the required revenue.

Step 3: 

The tariff for each service, S, per unit of demand is simply the ratio of the required revenue to be obtained from service S to the demand for the specific service:

Ts=RRsVs

Where:

• S: one of four main services
• Ts: Tariff of service s
• RRs: Required Revenue for service s
• Vs: Expected demand for service s
  
  *The methodology described above is preliminary and applies for each service offered. Dioriga Gas may decide to follow different approach following also the input of stakeholders for the various products on offer as a result of the Expression of Interest Phase of the Market Test.