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AERS: MEETING WITH NATURAL GAS DISTRIBUTORS ON CONNECTION CHARGES ...

BELGRADE, June 11, 2008 - Over the past two weeks the Serbian Energy Agency held meetings with natural gas distribution companies, just before the amended Methodologies on Criteria and Method of Determining Charges of Connection to Natural Gas Transport and Distribution System started to apply.

At four meetings in Belgrade, Vrnjacka Banja, Novi Sad and Subotica regulator experts demonstrated to 36 natural gas distribution companies (licensed or in licensing process) how to calculate the connection charges in line with the Methodology.

The Agency Council adopted the Methodology in February 2007 and amended it in April after additional consultations with all natural gas transport and distribution companies.

The Methodology defines which costs (of operation, material, equipment etc) to include in the connection charge/price, thus ensuring a unique approach in this area and lessening the differences in current prices which the companies calculated in line with their own individual procedures due to a missing regulation.

The Energy Law, however, does not entitle the Agency to determine the connection charge level, nor to approve the energy entities' acts defining the charge methodology. Also, according to the above mentioned Law, neither is the government nor the relevant ministry empowered to do so, therefore making the energy companies fully responsible for determining the level of these charges.

From now on the applicant has the right to access company's acts to check the level and structure of charges he is to pay and companies are obliged to connect the users under conditions most favourable to them.

The amended Methodology was published in the Official Gazette of RS, No. 48 on May 2, 2008. Connection charges will be calculated in line with this Methodology as of July this year.


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