In the natural gas sector, it is the capacity component in the transmission tariff for consumers of the transmission system.

An element in a two-part pricing method used in capacity transactions (energy charge is the other element). The capacity tariff is calculated based on the amount of capacity being purchased. Under the terms of the transportation agreement between INGL and natural gas consumers in Israel consumers have to pay the capacity charge whether they consume/transport the gas or not. To secure the finance for instance to build the Interconnector in the UK the original customers agreed to book all the then available capacity in the new system and signed up as IUK Shippers for a 20-year term. They agreed to pay a capacity charge throughout that period which provided a set rate of return on the capital investment required to deliver the project. Similarly, the subsequent projects to enhance the capacity of the Interconnector system have been funded on the basis of a capacity tariff paid over the remainder of the 20-year term (to the year 2018) and which provide a set rate of return. Capacity tariffs are paid monthly, whether or not gas is shipped, provided that the contracted capacity is made available for use (or is unavailable due to events such as planned maintenance).