Access tariffs to cross-border infrastructure are important features of the natural gas market integration “software”. Distorted access tariffs can lead to the underutilization of both existing and newly built infrastructure.
This paper addresses the relationship between cross-border gas transmission tariffs (mostly entry-exit tariffs) and regional cross-border gas trading between CESEC countries. First it identifies the present outlier (above average) tariffs in the region that are most likely to distort efficient cross-border trading. Next the paper offers potential explanations for tariffs being outliers. With market simulation tools it assesses the impact of a number of tariff reform scenarios – each addressing outlier tariffs – on market integration, the utilization of existing and a selected set of priority new CESEC infrastructure and on regional social welfare.

The study can be downloaded from the European Commission's website