Notification of Gas Pass-Through Charges Change

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Notification of Gas Pass-Through Charges Change

As indicated in your gas supply contract, the gas charge within your tariff reflects your risk management approach e.g. fixed gas price, for the contract duration. In addition, as highlighted in the pricing proposal, SSE Airtricity gas supply contract provided for regulated pass-through charges and how these charges would be treated under the contract.

These “Pass Through Charges” are applicable third-party costs, charges, tax, duty, levy, tariff or any government imposed charge, relating to the supply and distribution of gas to the customer’s premises including, but not limited to, transportation and distribution charges and VAT.

Pass-through charges are used to pay for common services for all gas consumers and these charges are subject to regulatory approval. The changes in these charges apply to all suppliers equally.

The Distribution and Transmission Transportation pass-through charges for the 2018/2019 period applicable from 1st October 2018 have now been set and the impact of these changes on your current contract prices are set out below.

Gas Networks Ireland (“GNI”) Distribution Tariffs for Gas Year 2018/2019

  • Capacity Charges have decreased circa 3.88% compared to the 2017/18 charges
  • Commodity Charges have decreased circa 3.1% compared to the 2017/18 charges.

Gas Networks Ireland Transmission Tariffs for Gas Year 2018/2019

  • The transmission capacity charge for UK gas has decreased from €761.263 to €715.863 € per peak day MWh (5.96% decrease on Oct 17 charge). 
  • The transmission commodity charge has decreased from 0.352 to 0.348 € per MWh (1.13% decrease on Oct 17 charge).

UK Gas Transmission Transportation Charges 2018/19

  • The revised level of the National Transmission System (“NTS”) System Operator (“SO”) exit commodity charge is 0.0092 p/kWh, a decrease of 8.9% compared to the current charge (0.0101 p/kWh) - a decrease of 0.0009 p/kWh.
  • The revised level of the NTS Transmission Owner (“TO”) exit commodity charge is 0.0217 p/kWh, an increase of 7.4% compared to the current level (0.0202 p/kWh) – an increase of 0.0015 p/kWh
  • The revised level of the NTS SO exit capacity charge for Moffat Interconnector is 0.0001 p/peak day kWh, which is a 66.6% decrease compared to the current charge of 0.0003p/peak day kWh.

The GNI Distribution and Transmission transportation charges are regulated and approved by the Commission for Regulation of Utilities (“CRU”). The UK National Transmission System (NTS) Charge is published by National Grid and approved by Ofgem.

The changes in Distribution and Transmission Transportation pass-through charges vary, and the exact change in the overall cost for your gas supply will be dependent on your consumption and your peak day KWh. All the new charges will be applied to your bills for consumption from 1st October 2018.

Given the forthcoming changes, we suggest that you should draw them to the attention of your finance team for future budgeting and forecasting.

Should you have any queries about your new tariffs or any other aspect of your service from SSE Airtricity, please do not hesitate to contact our Relationship Management team on 1850 927 775* or alternatively email corporateaccounts@sse.com.

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