Croatian natural gas entry/exit tariff methodology set for approval

20 June 2013 14:21 Source:ICIS

By the end of next week Croatian energy regulator HERA expects to have approved the natural gas transmission tariff methodology for the country's planned entry/exit model.

The watchdog's president Tomislav Jurekovic made the announcement at the Energy Trading conference in Prague on Wednesday.

Jurekovic added that Croatian transmission system operator Plinacro was then expected to calculate its new tariffs relatively quickly based on the proposed methodology and then submit these back to HERA for approval.

It is expected the watchdog will have approved the actual tariff by the start of August, Jurekovic said, giving market participants and prospective players sufficient time to acquaint themselves with the new pricing structure.

The move from the traditional postage stamp system to the entry/exit model is set for 1 January 2014.

Given the new model will commence three months into Gas Year 2013, it is expected it could take a while for market participants to get used to it, however.

Croatia formally adopted a new gas law in March, and over the last two years has seen some increase in competition. An interconnector completed in 2011 that links the country to Hungary has been key in enabling new entrants into the market.

A deal between Germany's E.ON and local firm Prvo Plinarsko Drustvo (PPD), for the latter to import volumes via the interconnector, was one of the first of its kind (see ESGM 13 July 2011). Tom Marzec-Manser

By Tomas Marzec-Manser