Serbia: Gas price liberalization 2015 announced by Srbijagas

1. October 2014. / News Serbia Energy

General Director of PE “Srbijagas” Dusan Bajatovic recently said that from January 1st next year began to apply the economic cost of gas. According to him, the debts of non-paying customers will not be tolerated any longer; they will have to pay for everything what has been delivered. As he said, there will be no exceptions, except maybe the schools, hospitals and kindergartens.

This statement alarmed many citizens that are heated by gas, because they were afraid it was announced another price increase. However, people can be relieved, because households also now are paying the economic gas price, which does not specify either “Srbijagas” or government but the Energy Agency.

That this is all completely normal, and that gas consumers, how much complain about high prices, do not pay the bills, it is certain that they would not have gas, because all debts must be settled before the heating season in order that gas could even arrived to households.

Therefore, it is likely that this information, which is actually a warning, is related to other customers. As we learned in the Energy Agency, from January 1st, 2015th, a new phase of the gas market liberalization will come into force. This means that all consumers except households and the so-called small customers (companies up to 50 employees) are required to enter the market. Households and small consumers can, if they wish, to choose a new supplier, but are not obligated to do so, unlike the others.

At the household level, the price of a cubic meter will still be determined by the currently valid principle – by sending request for price change to AERS, which will be analyzed, after which will be made a decision regardless of whether prices go up or down. Otherwise, PE “Srbijagas” has been chosen over tender to be a supplier of public suppliers and on this occasion was determined the method of price formation, as well as the methodology of price change. Price is adjusted to actual costs at which the gas is purchased from import and domestic production. Regulated gas price changes depending on its purchase price and the relationship of domestic and imported gas, and it is adjusted to the changes of fifteen average dollar exchange rate. Price of cubic is changed, either up or down, when cumulative monthly price changes, by which PE “Srbijagas” supplies public providers, exceed three percent.

On this basis, it is clear that households pay the economic gas price because the parameters for prices determining are clear. That these rules are followed, it is evident from the fact that the gas price for a short time has been twice changed – in August, when the cube for household increase in price between 1.1 and 1.4 percent, and from October 1st, price of a cubic meter of this energy will be higher by 4.8 percent.

So from October the gas consumers will pay the cubic meter of fuel on average price of 0, 39 EUR. Unfortunately, this is not the final figure that consumers pay because there is need to add a few more items that affect the price of cubic meters (value added tax, fee shall …). If does so the account grows and the cubic meter practically cost about 0, 44 EUR. As always, it is the average price, as some consumers pay the cubic meter so much, and some even more. Because the gas price is not the same in the whole Serbia.

Warehouse in Banatski Dvor is full

After the vice-president of Serbian Government, Zorana Mihajlovic, said that it Serbia would miss electricity, gas, coal and fuel oil during winter, as PE “Srbijagas” and “Serbia Power Utility Company” did not react in time, Dusan Bajatovic said that “one is not well informed “. Bajatovic says he could safely confirm that this winter would be enough gas. According to him, the underground gas storage facility in Banatski Dvor is full, but these gas amounts will not be sufficient for the winter in Serbia, why they have been prepared another three options of purchases. – The first is to buy gas from Russians and store it in Hungary, the other is to buy gas from traders who have already stored it in the country and third, but the least likely, the purchase of energy from small retailers, which automatically raises the price – Bajatovic.

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