Tariff computation methodology

Tariff for the LNG regasification services provided by natural gas liquefaction system operator – GAZ-SYSTEM was established in compliance with the hierarchy of applicable regulations, i.e.:

• the Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks, and repealing Regulation (EC) No 1775/2005
• the Energy Law of 10 April 1997 (Journal of Laws of 2021, item 716 as amended),
• The Regulation of the Minster of Energy of 15 March 2018 concerning detailed principles of tariff design and calculation, and settlements in gas trade (Dz. U. 2021, item 280)

Tariff for the LNG regasification services was devised to ensure:

• covering the reasonable costs in the scope defined in Article 45 of the Energy Law,
• protection of interests of recipients against unjustified price increase,
• avoiding cross-subsidies.

Regasification service fee rates were established based on:

• reasonable cost broken down into fixed and variable costs,
• contracted capacity ordered for the period of tariff’s validity and planned volume of LNG to be regasified.

Justified costs are planned by GAZ-SYSTEM and reviewed by the President of the Energy Regulatory Office, and they entail in particular:

• costs by type (in the meaning stipulated by the Polish Accounting Act),
• reasonable return on capital employed

Reasonable return on capital employed

The tariff for the LNG regasification services was developed assuming a rate of return calculated on the basis of the average weighted cost of capital (WACC) and in line with the guidelines of the Energy Regulatory Authority, including:

• methods of determining the cost of capital for infrastructural companies operating in the gas sector for 2019-2023,
•  information of the President of Energy Regulatory Authority on the risk-free rate.

The weighted average cost of capital employed in regasification activities for 2023 was set at 5,558%.

Tariff structure

Pursuant to the Tariff for the LNG regasification service, GAZ-SYSTEM charged the following fees:

• regasification services fee
  • fixed fee (for the contracted capacity)
  • variable fee (for the volume of gaseous fuel generated in the LNG regasification process and supplied to the terminal user at the exit point to the national transmission system)
• additional services fee
  • fee for reloading onto truck cisterns
• fee for separated services
  • fee for additional contracted capacity
  • fee for separated prolonged process storage

The structure of justified costs recovered under fixed and variable fee for regasification services, adopted for the purpose of Tariff calculation, reflects the actual ratio of planned fixed costs to variable costs incurred by the Company on account of the regasification services, amounting to 73%:27% for 2023.