The distribution tariffs consist of capacity and commodity charges that apply for use of the distribution natural gas network.
The tariff calculations are based on the allowable revenue, as agreed with the Commission for Regulation of Utilities (CRU), and forecast demands. Allowable revenue is calculated to reward the Gas Networks Ireland investment in the distribution network and allowable operating costs. Forecast capacities/demand are based on expected reserved capacity and expected commodity use of gas. There is an 80:20 capacity/commodity split to recover the allowable revenue of each system.
The distribution tariff uses a tiered structure whereby alternative charges are applied to customers based on their annual quantities. The charging categories are as follows:
(1) ≤ 73 MWh
(2) > 73 MWh - ≤ 14,653 MWh
(3) > 14,653 MWh - ≤ 57,500 MWh
(4) > 57,500 MWh
All distribution customers also use the transmission network and therefore contribute both distribution and transmission tariffs.
The current tariffs can be viewed below: