Serbia: Natural Gas Price Capped

Serbia: Natural Gas Price Capped

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On 19 May 2022, the Government of the Republic of Serbia adopted the Regulation on the temporary measure of limiting the price of gas and compensating for the difference in the price of natural gas, procured from imports or produced in the Republic of Serbia, in case of disturbances on the natural gas market, which regulation was published in the Official gazette of the RS no. 59/2022.

The goal of this regulation is to protect the economy and citizens in times of energy turmoil by compensating the difference in the price of natural gas purchased from imports and the price of natural gas from imports that is used to calculate the price for resale to suppliers, public suppliers and final customers, in November 2021. The same goes for the price of natural gas production now and the price of production in November 2021.

The procedure for obtaining price compensation has also been prescribed. It is initiated by submission of a request to the Ministry of Economy, that must be accompanied by i) an accounting document on the basis of which it is possible to clearly and unambiguously determine the price at which natural gas was purchased from imports in November 2021 and the quantities purchased at that price, ii) an accounting document, which must contain the date and time of the realized purchase, on the basis of which it is possible to clearly and unambiguously determine the price at which natural gas was purchased from imports, iii) proof of purchase and sale of foreign currency correlated with the invoice and day of natural gas import, iv) customs documentation confirming the import of natural gas for which the payment of compensation for the difference in price is requested, v) protocols on gas handover concluded with suppliers and natural gas transmission system operators, vi) statement under full material and criminal responsibility of the legal representative of the applicant that the quantities of natural gas are procured, ie produced under the most favorable conditions, and vii) accounting document, which must contain the time and date of the realized purchase, on the basis of which it is possible to clearly and unambiguously determine the price at which the natural gas was sold to the supplier, public supplier or final customer.

The Government will establish a Commission for recording and approving funds to compensate for the difference in price, which commission may request from the applicant to submit additional evidence.

Finally, it should be noted that the rules prescribed by this regulation apply exclusively to the quantities of natural gas intended for consumption in the territory of the Republic of Serbia.

By Marko Mrdja, Senior Associate, JPM Jankovic Popovic Mitic