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АЕRS: PE SRBIJAGAS PUBLIC SUPPLY PRICES APPROVED

BELGRADE, Monday, December 31, 2012.

On December 31, the Council of the Energy Agency adopted a decision on approving the decision of the PE Srbijagas Management Board on the prices of natural gas public supply. The Agency considered the cost-reflectiveness of the application for price change on the basis of the documents and the data submitted by PE Srbijagas during December 2012.

Upon obtaining the public supply licence, issued by the Energy Agency, and being appointed as a temporary natural gas supplier of public suppliers by the Government of the Republic of Serbia, in line with the Government Decision as of December 29, 2012, which also regulates the conditions under which PE Srbijagas will supply public suppliers upon their request, PE Srbijagas met the conditions for the price change. Under the given conditions, the average price at which public suppliers can purchase natural gas from PE Srbijagas has been increased by 10.38%, i.e. to 36.7 RSD/m3, transport costs included. However, the current gas import costs are not fully covered by this price either.

PE Srbijagas has not asked for the Agency’s approval of the change in transmission and distribution use-of-system charges (the so called network charges) and therefore, the 2011 charges will be still in force for these services, although they do not meet real justified costs.

Under the given conditions, average public supply prices for all customers connected to the PE “Srbijagas” distribution system amounts to 9.9% (to 39.13 RSD/m3). For households, the increase amounts to 9.3% (to 41.32 RSD/m3).

New prices of public supply will come into force as of January 15, 2013 for all PE “Srbijagas” customers connected to the distribution system, except for households. Household prices will be in force as of February 1, 2013. Customers connected to the transmission system are no more entitled to regulated prices and will be supplied at market prices set by the supplier they choose.

The Agency will be in a position to approve new prices of public supply of those customers connected to other 34 distribution systems once they obtain public supply licences

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