COMPETENCIES OF THE AGENCY IN SETTING PRICES FOR ENERGY AND SERVICES ...
BELGRADE, 22 September – Competencies of the Energy Agency of the Republic of Serbia in regulating prices include determining methodologies for setting tariff elements for calculating prices, approving tariff systems as well as giving opinions on prices of energy and services that energy entities put forward.
The Government of the Republic of Serbia approves tariff systems and prices of energy and services.
At the end of July, the Agency approved and subsequently published all methodologies for setting tariff elements for prices of energy and services for all businesses (except gas storages).
After substantial professional discussion and consultation with energy entities and the Ministry of Mining and Energy, tariff systems for transportation of natural gas, oil and oil derivates and for electricity transmission, will be submitted to the Government for approval, soon to be followed by other tariff systems.
New system for regulating prices should come in force on 1 January 2007. Energy entities, along with their annual business plans, will propose prices of energy and services for 2007. These proposed prices will be based on the above mentioned methodologies, sent to the Energy Agency for review and after that submitted to the Government for approval.
The innovative aspect of this methodology is that the subject of monitoring will not only be total price for the end customer but, according to each businesses, costs of production, electricity trading for tariff customers, transmission, transmission system operation and electricity distribution. A similar structure is in place for natural gas. However, in the case of oil, the subject of monitoring is only transportation through oil pipelines and product pipelines.