Gas price to go up in September by 5.7 percent on average

Srbijagas public company has notified the Energy Agency that the Serbian government appointed this public company as the supplier of public suppliers in compliance with the Energy Law, adding that the price of natural gas for public suppliers is set in line with tender terms and approved by the government. Methods for changing this price are determined according to tender terms. In this tender procedure, the price for Q3 2013 is set to USD 453.35 per 1,000 cubic meters, and Srbijagas has calculated that the fee for supplying gas to public suppliers in the period starting September 1st is at RSD 32.19 per 1,000 cubic meters, up 6.4 percent from before, the Energy Agency said in a release.

Based on aforementioned wholesale rate, Srbijagas has also calculated prices for gas consumers that are connected to the network of this company and submitted these prices to the Energy Agency for approval.

Srbijagas has also submitted an offer and a draft agreement to other public suppliers operating as part of 32 natural gas distribution companies, and these suppliers have started sending their draft decisions on new prices for the public supply of natural gas to their end-users to the Energy Agency. Public suppliers can either accept the offer made by Srbijagas or procure gas from other suppliers.

According to a preliminary calculation, gas price is expected to go up 4.4 percent on average for households in Serbia and 5.7 percent on average for all consumers.

With this price change, the prices of access to gas transportation and distribution systems (network fees) set in 2011 won't be changed.

Consumers connected to the transportation system have no right to public supply since January 2013, while all consumers connected to distribution systems, exclusive of small consumers and households, will lose this right as of January 2015.