For consumers to use natural gas, it must be bought and later transported to their premises.
This route comprises various stages which define the value chain for the Natural Gas Sector: acquisition / importing, reception / storage / re-gasification, underground storage, transmission, distribution and sales.
For each of the activities mentioned, ERSE determines the profit allowed in accordance with the methodologies of regulation defined in the Tariff Code.
The profit allowed gives rise to the natural gas tariffs which are defined and published annually by ERSE, in accordance with what is established in the Tariff Code.
The various stakeholders in the Natural Gas Sector are involved in the process for the approval of the tariffs and the Tariff Code.
- The LNG (Liquefied Natural Gas) Reception, Storage and Re-gasification tariff must provide profits for the LNG reception, storage and re-gasification activities.
- The tariff for the Underground Storage of Natural Gas must provide profits for activities related to the underground storage of natural gas.
- The tariff for the Global Use of System must provide profits for activities related to the global technical management of the system of the natural gas transmission network operator.
- The tariff for the Use of Transmission Network must provide profits for transmission activities of the High Pressure natural gas transmission network operator (applicable to natural gas deliveries at High Pressure, Medium Pressure and Low Pressure).
- The tariff for the Use of Distribution Network must provide profits for natural gas distribution activities at Medium Pressure (applicable to natural gas deliveries at Medium Pressure and Low Pressure) and at Low Pressure (applicable to natural gas deliveries at Low Pressure).
- The Energy tariff must provide profits for activities related to the buying and selling of natural gas to supply wholesale and retail last resort suppliers.
- The Retail Commercial tariff must provide profits for activities related to the supply of natural gas. They are applied by wholesale last resort supplier to so-called large clients supplied in the Regulated Market and are applied by retail last resort suppliers to the remaining clients supplied in the Regulated Market.
The Networks Access tariffs are paid by each natural gas consumer in the Free Market or in the Regulated Market and are obtained through the sum of the tariffs for the Global Use of System, the Use of Transmission Network and the Use of Distribution Network, and are included in the final tariffs of each supplier. These tariffs are approved and published annually by ERSE.
The last resort supplier’s End User tariffs are obtained by adding the prices of the Networks Access tariffs, applicable to the delivery in question, to the prices of the Energy tariff and the Retail Commercial tariff, and are only applied to Regulated Market consumers. In the Energy tariff applied by the last resort supplier, in addition to the natural gas acquisition costs, costs of the reception, storage and re-gasification of the natural gas and underground storage costs of the natural gas are also included. These tariffs are approved and published by ERSE.
The End User Tariffs for annual consumptions higher than 10 000 m3 were extinct in June 11th 2010, by the Decree-Law no. 66/2010.
The prices practised in the Free Market are determined by each supplier and negotiated individually with each client.