Serbia: Gas wholesale market, connection charges endanger widespread usage of needed gasification of the country

, News Serbia Energy

Prices of household connection to the gas network in Serbia is from 600 to 1,500 euros. If distributors themselves do not reduce prices, the government will certainly take action, according to the relevant ministry. The cause of slow gasification is exactly expensive gas and port, adding responsible.

Gas is a clean energy source and for multiple purposes. Households can use it not only for heating but also for cooking, heating of water, greenhouses and conservatories.

However, the problem is not only the price of gas, because its implementation is too expensive too. Prices of household connection, from city to city, is ranging from 600 up to 1,500.

In Smederevo, from 2003 to 2007, there was an ambitious plan of gasification, it was planned that in addition to household connections all boilers transfer to gas.

However, very little has been done; at the end of last year, this business was relaunched and surrounding villages are being gasified too.

Radomir Nikolic from the village Vranovo says he will not get a connection if the price is 1,000 euros.

“Am I going to have the gas connection, that is the question. We do not have any information. The local community has not notified anything. We heard that the price around 1,000 euros. However, if that is the price, no way,” says Radomir.

Smederevo authorities say that they have agreed a favorable price, and people will pay 600 euros for connection. By the way, the prices in Serbia are very different.

In Uzice connection to the gas network costs 1,300, in Belgrade 900 euros.

The Energy Agency said that the biggest problem is that gas connection prices no one directly approves, because it is not regulated by law.

Ljiljana Hadžibović from the Agency emphasizes that the prices are unreasonably different.

“They are different, unjustifiably different. We would be happy if it would be between 600 and 800 euros. Conditions in the mountain are a bit more expensive than in Vojvodina, for example” she says.

Last year, “Srbijagas” and other investors have occasionally decreased price of connection to the gas network. However, it is not enough.

In the Ministry of Energy they say that the gas equipment is expensive but that distributors must offer a price decrease, to attract consumers.

Deputy Minister of Energy Petar Stanojevic said the gasification is slow because of high prices.

“Practically the gasification of Serbia almost stopped because of expensive gas and expensive connection. If distributors themselves do not decide to reduce the price of connections, which is in their interest because they would increase their own market, the government will surely take action,” said Stanojevic.

Gasification of Serbia is very important since our gas network should already for two years to be connected to the South Stream gas pipeline.

In addition to the larger amount of gas that the country will get, this pipeline is expected to have more favorable price of gas.

Source; Serbia Energy

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