Natural gas

Natural gas

By the adoption of the new Energy Law (“Official Gazette of RS”, No. 145/14 and 95/18 –another law) in the end of 2014, the energy field in the local legislation was harmonised with the provisions of the Third Energy Legislation Package of the European Union and, thereby, the process of introduction of competition in the energy sector in Serbia was continued in order to increase the efficiency of the sector via market mechanisms in electricity production and supply, while economic regulation of electricity transmission and distribution as natural monopolies still remained.

In line with the Law, all final natural gas customers are entitled to select their supplier freely in the market. Households and 

small natural gas customers Small customers — natural gas Small natural gas customers imply final customers with annual constumption of up to 100,000 m3 with all their facilities connected to the distribution system.

 are entitled to it since January 1, 2015, but they are also still entitled to 

public supply Public supply - natural gas Public supply implies the sale of natural gas to households and small customers at regulated prices.

Customers who are not entitled to public supply buy natural gas from licenced suppliers in the open market. The final customer who is not entitled to public supply for 

public supply The right to the supply of the last resort may be exercised by a final natural gas customer who is not entitled to public supply in line with the provisions of this law, in case of:
1.bankruptcy or liquidation of the supplier who has supplied the customer so far;
2.termination or withdrawal of licence of the supplier who hasl supplied the customer so far;
3.the customer has not found a new supplier after the termination of the supply contract with the prior supplier, unless the termination of the contract is the consequence of unsettled liabilities by the customer.

 prescribed by Article 302 of the Energy Law) is entitled to the supply of the last resort in the period of 60 days during which the customer is obliged to find a new supply (otherwise, the system operator is obliged to suspend natural gas delivery). The price of the supply of the last resort is, as a rule, higher than the market prices, since, pursuant to the Article 303 of the Energy Law, it cannot be below average price at which the transmission system operator sells natural gas for system balancing purposes.
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