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Calculation of Flogas Energy Tariffs

The energy tariffs are calculated based on the following costs:

  • Pass through costs
  • Wholesale energy costs
  • Supplier costs

Pass Through Costs

Pass Through costs are set by market, system and network operators and approved by the Commission for Regulation of Utilities (CRU).

Electricity

Generation

  • Capacity Payments made to electricity generators.
  • Market Operator Charges for the operation of the wholesale market.
  • Imperfection Charges to cover the costs of constraints on the electricity network.

Network

  • Transmission Use of System Charges for the building, maintenance and operation of the electricity transmission network.
  • Distribution Use of System Charges for the building, maintenance and operation of the electricity distribution network.

PSO

  • Public Service Obligation Levy for the support of renewables, security of supply and indigenous fuels.

The latest CRU information note on electricity pass through costs can be found here

Natural Gas

Network

  • Gas Networks Ireland Transmission Tariffs for the operation of the transmission network.
  • Gas Networks Ireland Distribution Tariffs for the operation of the distribution network.
  • UK Transportation Costs for the cost of transporting gas from the UK to Ireland.

Shrinkage and Balancing

  • Charges associated with the balancing and distribution of gas on the system.

Natural Gas Carbon Tax

  • A charge levied on natural gas by Irish Tax and Customs.

Wholesale Energy Costs

These costs reflect the cost to purchase energy on the wholesale markets. Wholesale costs vary throughout the year and are influenced by many factors such as supply, demand, weather, commodity prices and exchange rates.

Supplier Costs

These costs are based on costs associated with operating as an energy supplier and serving customers in the market.