Study on the estimation of the cost of disruption of Gas supply in Europe

Kantor Management Consultants S.A. recently concluded the “Study on the Estimation of the Cost of Disruption of Gas Supply in Europe” for the Agency for the Cooperation of Energy Regulators (ACER). The purpose of the project was to develop a methodology which allows the evaluation of the Cost of Disruption of Gas (CoDG) supply in monetary terms per EU Member State per type of consumer. The study aimed to improve the existing methodology regarding the monetisation of the CoDG and in particular to provide clearly structured, documented and practical methods for estimating the CoDG, estimates (figures) of the value of CoDG per Member State and per type of consumer and insights on a possible methodology for the solidarity price. The study entailed providing input to ENTSOG in further quantifying the monetary impact of a disruption in the context of the application of the Cost-Benefit Analysis methodology (CBA) and in the Ten-Year Network Development plan (TYNDP) and providing insights to national regulatory authorities (NRAs), and ACER, towards calculating compensation costs in the context of the solidarity mechanism as per Commission Recommendation (EU) 2018/177. The study has been published by ACER.