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LOWER NATURAL GAS TRANSMISSION USE-OF-SYSTEM CHARGES VIA YUGOROSGAS-TRANSPORT, LLC NETWORK

BELGRADE, Friday, April 28, 2017.

On the session held on April 27, 2017, the Council of the Energy Agency has adopted a Decision on the Approval of Decision on Natural Gas Use-of-System Charges adopted by the Manager of “Yugorosgaz-Transport”. Hereby, the transmission use-of-system charge was harmonised with the Energy Law and the ruling methodology for setting charges.

AERS

As of May 1, 2017, the transmission use-of-system charge via the transmission system of Yugorosgaz-Transport is set in line with the Entry-Exit model. In such a way, efficient use of the transmission system is stimulated since the users who consume gas in a more balanced way during the year will pay a significantly lower transmission use-of-system charge in comparison to the average one. At the same time, transmission system users are enabled to contract the capacity on the annual level, as well as on the monthly and daily level and, thereby, reduce natural gas transmission costs significantly. The Entry-Exit model has already been applied to the PE Srbijagas network.

The Yugorosgaz-Transport transmission system includes the transmission network Pojate-Niš-Leskovac. Transmission use-of-system charge via Yugorosgaz has not been modified since 2011 and will be herby reduced as of May 1, 2017 by average 53%. Since there is a small share of the transmission use-of-system charge in the final natural gas price, this modification will not have a significant impact on the final price paid by the customers connected to this transmission system. Moreover, the effects of this change to final customers entitled to public supply (households and small customers) will be noticed once these prices are changed.

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