Serbia: Market caused decrease in prices of gas from December

Published on 12. November 2013., News Serbia Energy

According to the preliminary calculation of the Energy Agency of the Republic of Serbia, it is expected that natural gas prices for households in Serbia will be lower on average by 3.2 per cent from 1 December 2013, and for all customers on average by 3.4 percent, announced the energy agency AERS. The Agency has asked all public suppliers to promptly submit decisions on prices for final customers, so after the analysis of the proposals, the Agency could give them approval for new prices.

In addition to this price change, fees for systems approach to transport and distribution of gas, which were established in 2011 will not change, according to the Agency.

Srbijagas informed 33 public suppliers of natural gas that the new wholesale price will be 37.69 dinars per cubic meter, based on which these suppliers form the price for public supply, which is 3.6 percent lower than the current price. This price change is caused by changes in the cost of import prices and the fall of the dollar.

The Government of the Republic of Serbia, in accordance with the Energy Law in a public tender, has chosen  Srbijagas to be the supplier of public suppliers. Methodology of wholesale price change is determined by the terms of the tender. This price is no longer regulated and shall be determined on the basis of supply and demand, in the procedures specified in the Act, reminds AERS.

Public providers may accept the offer from Srbijagas and also can get gas from other suppliers, if it is more favorable to them. This allows suppliers of public suppliers to cover the rational level of their own costs by adapting to the market conditions.

Customers connected to the transmission system have no right to public supply since January 2013, and customers connected to the distribution system will not have it too, from January 2015.

Source; Serbia Energy