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Tariff computation methodology

Tariff No. 1 for the LNG regasification services provided by natural gas liquefaction system operator – Polskie LNG S.A. was established in compliance with the hierarchy of applicable regulations, i.e.:

Tariff No. 1 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 Polskie LNG S.A. 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
Tariff No. 1 for the LNG regasification service was established based on the assumed rate of return computed on the basis of the weighted average cost of capital (WACC).

The underlying parameters for calculating WACC and adopted in the decision of the President of the Energy Regulatory Office are as follows:

  • risk-free rate – 2.751%,
  • equity capital premium – 4.50%,
  • equity beta β coefficient – 0.559 which corresponds with asset beta of 0.4,
  • cost of debt – 3.75%

The amount returned shall cover regulatory assets value understood as the sum of net value of Polskie LNG S.A.’s fixed assets.

Tariff structure
Pursuant to the Tariff No. 1 for the LNG regasification service, Polskie LNG S.A. charges 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 No. 1 calculation, reflects the actual ratio of fixed costs to variable costs incurred by the Company on account of the regasification service, which is 96:4.

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