GAZ-SYSTEM to Lower Gas Prices, Poland

GAZ-SYSTEM to Lower Gas Prices

President of the Energy Regulatory Office approved a new, lower Tariff  for gas transmission services submitted by GAZ-SYSTEM S.A.

Under the new Tariff of GAZ-SYSTEM S.A., the cost of transporting 1,000 cubic metres of natural gas went down by 3.25 percent as compared to the previously applicable Tariff. In real terms, the tariff reduction is even greater, as it does not account for inflation. According to the Central Office of Statistics, in November the 12-month rolling inflation rate was 2.8%.

Efficient management and cost reduction, along with well-structured financing of the company’s investment project largely relying on non-returnable subsidies from the European Union contributed to another reduction of the transmission tariff rates applied by GAZ-SYSTEM S.A.

The design of the new tariff for gas transmission services is intended to support the process of energy market liberalisation and the changes introduced in the draft of the new Transmission Network Code (TNC).

Similarly as in the previous year, Tariff No 6 prepared by GAZ-SYSTEM S.A. is an Entry-Exit tariff, which means that the billing for gas transmission is aligned with EU standards and based on charges applied at system entry and exit points. This tariff model results from the provisions of the 3rd Energy Package and Regulation 715/2009 of the European Parliament and the Council.

The division into tariff groups no longer applies under the new tariff. The Tariff No 6 also provides for a significant reduction of adjustment coefficients applicable to fixed charge rate for short-term contracts (semi-annual, quarterly and monthly), which will result in lower cost of such services for the transmission network user. Furthermore, the charges for gas transportation to and from Underground Gas Storage have been substantially decreased.

The Tariff No 6 for transmission services will be effective as of 30 September 2013.

LNG World News Staff, December 20, 2012; Image: Gaz-System