29 July 2016
Tokyo Gas Applies for Authorization of "Transmission Service Agreement"
Corporate Communications Dept.
Tokyo Gas Co., Ltd.
Tokyo Gas Co., Ltd. (Head office: Minato-ku, Tokyo; President: Mr. Michiaki Hirose, "Tokyo Gas") has submitted an application to the Minister of Economy, Trade and Industry for authorization of "transmission service agreement" (hereinafter referred to as "Agreement") prescribed in Article 48 Paragraph 1 of the Gas Business Act (5th revision), pursuant to Article 18 Paragraph 1 of this Act*1.
The "Agreement" is provisions which prescribe the tariffs and other supply conditions in cases where businesses newly participating in gas sales and other gas retailers aside from Tokyo Gas use the gas pipelines and facilities of Tokyo Gas. The present transmission service agreement has been revised to reflect the revisions of various laws toward the full liberalization of the gas retail market to be implemented on April 2017 as well as the contents of deliberations at national councils*2.
The main contents of the revisions are as follows.
-
Establishment of new transmission service tariff ("Standard Transmission Service Tariffs")
To date, transmission service tariffs have not been set for customers receiving gas supply with an annual consumption volume of less than 100,000m3 per year. Transmission service tariffs for small-volume customers are now being established because they will also become subject to liberalization with the full liberalization of the retail gas market from April 2017.
In addition, Transmission service tariffs for large-volume*3 customers receiving gas supply are revised to reflect the revisions of the items of costs in estimating the transmission service tariff.
- Establishment of discount tariff ("Optional Agreement")
At the same time, for the customers of using the gas pipeline facilities effectively, for example, that installed the co-generation system, the "Optional Agreement" that discount from the "Standard Transmission Service Tariffs" are now being established.
Under the application, the transmission service tariff is an average of ¥21.89 per m3 (in the supply area, "Tokyo district etc.")
The "transmission service agreement" for which the application for authorization was submitted today is scheduled to be implemented from 1 April 2017, following authorization by the Ministry of Economic, Trade and Industry.
*1 upplementary Provisions of the Act on Partial Revision to the Electricity Business Act, Etc. (enacted on June 24, 2015).
*2 National councils include the Gas System Reform Subcommittee of the Strategic Policy Committee of the Advisory Committee for Natural Resources and Energy.
*3 By the end of March, 2017, it will become possible for customers with an annual consumption volume of 100,000m3 (46MJ) or more to conclude contracts through large-volume supply.
In the areas where Tokyo Gas supplies 45MJ gas ("Tokyo district etc." and "Gunma district etc. "), the volume will be 102,223m3 or more, and in the areas where Tokyo Gas supplies 38.51166MJ gas ("Yotsukaido 12A district"), the volume will be 106,630m3 or more.
Appendix 1
■Tariff table
1.Standard transmission service tariff(Type1)[tax-exclusive]
Tokyo District etc. (45MJ) | Gunma District etc. (45MJ) | Yotsukaidou12A District (38.51166MJ) | ||||||
Type1 | A | Tokyo District etc.:0m3~20m3 Gunma District etc.:0m3~24m3 Yotsukaidou12A District:0m3~20m3 | Fixed tariff | Standing | /contract /month | 103.50 | 103.50 | 103.50 |
Unit tariff | /m3 | 57.20 | 99.87 | 89.61 | ||||
B | Tokyo District etc.:20m3~80m3 Gunma District etc.:24m3~500m3 Yotsukaidou12A District:20m3~200m3 | Fixed tariff | Standing | /contract /month | 144.10 | 1,001.40 | 721.10 | |
Unit tariff | /m3 | 55.17 | 62.46 | 58.73 | ||||
C | Tokyo District etc.:80m3~200m3 Gunma District etc.:500m3~ Yotsukaidou12A District:200m3~ | Fixed tariff | Standing | /contract /month | 952.10 | 5,881.40 | 2,639.10 | |
Unit tariff | /m3 | 45.07 | 52.70 | 49.14 | ||||
D | Tokyo District etc.:200m3~500m3 | Fixed tariff | Standing | /contract /month | 1,462.10 | - | - | |
Unit tariff | /m3 | 42.52 | - | - | ||||
E | Tokyo District etc.:500m3~800m3 | Fixed tariff | Standing | /contract /month | 4,862.10 | - | - | |
Unit tariff | /m3 | 35.72 | - | - | ||||
F | Tokyo District etc.:800m3~ | Fixed tariff | Standing | /contract /month | 9,622.10 | - | - | |
Unit tariff | /m3 | 29.77 | - | - |
2.Standard transmission service tariff(Type2)[tax-exclusive]
Tokyo District etc. (45MJ) | Gunma District etc. (45MJ) | Yotsukaidou12A District (38.51166MJ) | |||||
Type2 | No.3 | Fixed tariff | Standing | /contract /month | 43,070.00 | 46,100.00 | 24,170.00 |
Flow rate | /m3/month | 675.00 | 719.74 | 159.00 | |||
Unit tariff | Winter | /m3 | 4.62 | 23.88 | 6.00 | ||
Other seasons | /m3 | 3.85 | 19.90 | 5.00 | |||
No.2 | Fixed tariff | Standing | /contract /month | 105,840.00 | 79,600.00 | - | |
Flow rate | /m3/month | 675.00 | 719.74 | - | |||
Unit tariff | Winter | /m3 | 2.94 | 23.04 | - | ||
Other seasons | /m3 | 2.45 | 19.20 | - | |||
No.1 | Fixed tariff | Standing | /contract /month | 227,570.00 | 141,600.00 | - | |
Flow rate | /m3/month | 675.00 | 719.74 | - | |||
Unit tariff | Winter | /m3 | 2.16 | 22.68 | - | ||
Other seasons | /m3 | 1.80 | 18.90 | - | |||
Amount added for low pressure | Additional unit tariff | /m3 | 1.97 | 3.13 | - |
3.Optional Agreement[tax-exclusive]
Tokyo District etc. (45MJ) | Gunma District etc. (45MJ) | Yotsukaidou12A District (38.51166MJ) | |||||
Type1 | Discount for small type cogeneration system package | Discount | /m3 | 3.50 | 3.50 | 3.00 | |
Discount upper limit | /month | 700.00 | 700.00 | 700.00 | |||
Discount for cogeneration system only | Discount | /m4 | 6.50 | - | - | ||
Discount upper limit | /month | 16,000.00 | - | - | |||
Type2 | No.3 No.2 No.1 | Discount for cogeneration system only | Discount | /m5 | 2.00 | - | - |
Discount upper limit | /month | 300,000.00 | - | - |
Appendix 2
Outline of the "Transmission Service Agreement"1.Preconditions for estimating the tariff for Transmission Service
Period for the calculation | Gas volume | Rate of fair return |
FY2017~FY2019 | 13.5 BCM | 2.18% |
(note) ・The gas volume is estimated based on the Supply Plan.
・The ratio of fair return is calculated subject to the relevant law.
2.The costs taking into account at the estimation of the tariff
As the estimation, we take into account the costs for required check, maintenance, repairs and replacements for the gas transmission facilities to secure stable and safe gas supply and the amortization expense for the construction for new pipelines to meet the increasing demand.
・We also estimate the costs taking into account the reflection of Gas Market Reform including the required costs for the sales activities contributing to the installation of new pipelines for new customers and the operation to keep our gas supply stable.
・At the same time, we also take into account the impact of the assumed cost saving including the promotion to seek competing bids for the purchases of maximally. As the result, the amounts of the costs were estimated 295.9 billion yen as the costs in the supply area of "Tokyo district etc." (the average of 3 years (FY2017 to 2019)).
【Contents(Tokyo district etc.)】 (Unit:100 million yen)
Estimated cost (application) | reference | ||
Network cost subject to yardstick assessment | 1,057 | Total of Personnel expenses、General expenses (except for "cost related to facilities" and "taxes and dues")and General and administrative expenses | |
Cost related to facilities | Depreciation & amortization | 919 | |
Repair costs | 321 | ||
Loss on retirement of property, plant and equipment | 186 | ||
Fair return | 139 | ||
Taxes and dues | 327 | ||
Other expenses・Allowable profit | -87 | ||
Cost for supply and demand adjustment | 30 | Total of cost for adjustment and transfer | |
Cost for market research and development | 68 | Total of cost for market research and market development | |
Total | 2,959 |
Tokyo Gas Co. Ltd. published this content on 29 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 29 July 2016 05:47:12 UTC.
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