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METHODOLOGY FOR SETTING CONNECTION COSTS FOR NATURAL GAS DETERMINED ...

BELGRADE, 8 February - – The Energy Agency determined the Methodology on criteria for setting costs of connection to natural gas transportation and distribution system, based on which the energy entities for transportation and distribution will have to calculate connection costs for their users beginning on 1 June.

According to this Methodology, network users will have to pay only for the costs of the connection that is built for them, in order to connect their facilities to the existing gas network. The users will also have to pay part of the system costs incurred while creating conditions for the connection to the network, but only temporarily and a fixed amount. This second part of the costs will be withdrawn for the users and will be transferred to the energy entities for natural gas transportation and distribution, once the prices of their services can cover these costs.

The Methodology sets what costs (operating, material and equipment costs etc) can be included in the connection costs. Based on the Methodology, natural gas network companies will pass standards and acts on connection costs and then submit them to the Agency.

The Energy Law, however, does not stipulate the Agency as a body that sets the connection costs or gives consent to energy entities acts that set the costs. Also, according to this Law, neither the Government nor the relevant Ministry is competent to determine the level of connection costs.

Those parties who submit an application will in future have the right and possibility to have access to energy entities’ documentation and thus check the structure of costs. The entities are obliged to install the connection at the most favourable terms for customer.

The process of setting the Methodology was slowed down due to the difficulties of obtaining the data for testing the Methodology from the natural gas distributions.


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