Gas tariff design: A critical review of the Spanish case

Abstract

As in many other countries, in Spain, third party access to gas facilities is subject to regulated tariffs. The development of a sound gas tariff design must fulfil different objectives, including efficiency on cost-allocation and cost recovery as key objectives. This paper addresses the current gas tariff design in Spain, in both, the current tariff settlement procedure and the tariff design methodology proposed by the Spanish Energy Commission. Current challenges in gas network tariff design will be finally analysed to establish a proposal for tariff design which provides efficient economic signals while considering a balance among principles.