Serbia: The Government is considering a restructuring plan of Srbijagas

, News Serbia Energy

The Ministry of Energy and Mining submitted to the Government a restructuring plan of Srbijagas, harmonized with the Third Energy Package. The plan implies that the Srbijagas will become vertically organized company with legally separated activities. The Energy Community set 31st March 2015 as deadline for ending of the restructuring process, and that deadline could be complied if the plan is adopted in emergency procedure.

To recall, on EC’s Ministers’ meeting held on 23rd September in Kiev, Serbia was once more criticized for missing to fulfill its obligations on the natural gas market, i.e. because the companies Srbijagas and Jugoros gas didn’t separate gas production from gas transport.

The separation envisaged by EU regulations, with which Serbia is obliged to harmonize within the Energy Community, should have been applied back in 2007. Jugorosgas founded in September 2013. a subsidiary for gas transport, bas that was marked as insufficient for securing independent decision making within company. Srbijagas, on the other hand, didn’t even separate its activities legally. Not separating two gas transport companies, represents an obstacle for development of competitive gas market in Serbia, but also affects the development of broader regional gas market, as well the urgently needed investments in gas sector.

Public Enterprise ‘’Srbijagas’’ suggested the founding of a holding company with legally separated subjects of activity. The Energy Community and the European Commission didn’t have objections on this proposition. In this model the separate dependent legal entities are formed, and they are the owners of the assets and dispose with them for business purposes, which is in accordance with the Third energy package. That way, the restructuring of Srbijagas, delayed for a the long time, could be completed in accordance with the Third energy package, and which has been waiting for 18 months for a consensus of parties concerned on the depth of required reforms.