Macedonia Natural Gas Tariffs ERRA Countries Tariff Riga 2009 Eng

7/31/2019 Macedonia Natural Gas Tariffs ERRA Countries Tariff Riga 2009 Eng

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NATURAL GAS TARIFFNATURAL GAS TARIFF

STRUCTURESSTRUCTURESIN THE ERRA MEMBERIN THE ERRA MEMBER

COUNTRIESCOUNTRIES

Country: Republic of MacedoniaCountry: Republic of Macedonia

ERRA Tariff/Pricing Committee meetingSeptember 24-25, Riga, Latvia


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Natural gas market in Republic of Macedonia is in very beginning phase of itsdevelop

Regulated by the Energy Law (primary regulation) The Energy Regulatory Commission prepares and issues by law (secondaryregulation), and has the responsibility regarding economic regulation of theenergy sector

1 (one) licensed company for supplying natural gas on tariff consumers whichare connected to the transmission system. (AD Makpetrol)

1 (one) licensed company for transmission and for transmission systemoperator for natural gas on tariff consumers which are connected to thetransmission system (AD GA-MA)

1 (one) licensed company for distribution of natural gas Kumanovo, for tariffconsumers which are connected to the distribution system. (is still inconstruction)

5 (five) licensed companies for trading natural gas, but only one is active . About 30 industrial consumers and district heating company are directly

connected to the transmission system Up to now, only one customer (district heating company) requested and

obtained status of eligible customer


NATURAL GAS MARKET IN REPUBLIC OF MACEDONIANATURAL GAS MARKET IN REPUBLIC OF MACEDONIA


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Current transmission pipeline is 165km long, with nominal capacity of800 million m3, working pressure 54 bars

Current consumption of natural gas is about 15% of its capacity or 120million m3, user is the industry

Insignificant consumption of natural gas / no distribution network /

natural gas is not used by the households Development of the distribution of natural gas is on the very beginningphase, in construction phase.. Energy Regulatory Commission during2008 issued first license for distribution (Kumanovo) and in march 2009were issued license for natural gas distribution, for operation of thenatural gas distribution system and for supplier of tariff customers,

connected on the distribution system for Free technological industrialdevelopment zone in Skopje formed by Government of the Republic ofMacedonia


NATURAL GAS MARKET IN REPUBLIC OF MACEDONIANATURAL GAS MARKET IN REPUBLIC OF MACEDONIA


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High pressurepipeline- realized

High pressure

pipeline- priority for

construction

Transmissionpipeline - planed

DEVE BAIR MKD

STRUMICA MKD

SKOPJE

BITOLA

NEGOTINO

VELES

KICEVO

STRUMICA

BULGARIJA

SRBIJA AND

MONTENEGRO

GREECE

ALBANIA

DEBAR MKD

STRUGA MKD

MEGITLIJAMKD

GEVGELIJAMKD

BLACEM

KD

SOPOTMKD

OHRID

REPUBLIC OF MACEDONIA GAS PIPELINE DEVELOPMENT

PLAN

-Extending of magisterial

pipe line towards to

Negotino, Bitola

-Construction of distribution

pipe lines in Skopje,

Kumanovo and Kr. Palanka

-Construction of CCHP in

Skopje (180 MW)


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The ERC brings regulations on price formation of the natural gasThe ERC brings regulations on price formation of the natural gassupply system.supply system.

The ERC prescribes tariff systems for natural gas and adoptsThe ERC prescribes tariff systems for natural gas and adopts

decisions on prices of the natural gas in compliance with the prdecisions on prices of the natural gas in compliance with the priceicesetting methodologies and tariff systems for natural gassetting methodologies and tariff systems for natural gas

The ERC monitors the energy market operations and mechanismsThe ERC monitors the energy market operations and mechanismsused to deal with congested capacity on the natural gas pipelineused to deal with congested capacity on the natural gas pipelinesswithin the Republic of Macedoniawithin the Republic of Macedonia


1.1. THE ROLE OF REGULATOR IN THE SPHERE OFTHE ROLE OF REGULATOR IN THE SPHERE OF

REGULATIONREGULATION OF THE NATURAL GAS SUPPLYOF THE NATURAL GAS SUPPLY

SYSTEMSYSTEM


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Energy Regulatory Commission of theEnergy Regulatory Commission of the

Republic of Macedonia use the methodologyRepublic of Macedonia use the methodology

based on incentive price regulation, which isbased on incentive price regulation, which isapplied by the price cap methodapplied by the price cap method

The price cap method establish a priceThe price cap method establish a price

adjusted to cost fluctuations, ensuringadjusted to cost fluctuations, ensuring

sufficient revenue to cover justifiedsufficient revenue to cover justified

(normalized) expenses(normalized) expenses


2.2. REGULATORY APPROACHREGULATORY APPROACH,,

FOLLOWED IN YOUR COUNTRYFOLLOWED IN YOUR COUNTRY


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In Republic of Macedonia there are noIn Republic of Macedonia there are no

storage for natural gasstorage for natural gas


3.3. DO YOU HAVE NATURAL GAS STORAGESDO YOU HAVE NATURAL GAS STORAGES??

IF YESIF YES,, HOW DO YOU COMPENSATE THEHOW DO YOU COMPENSATE THE

OPERATING AND MAINTENANCEOPERATING AND MAINTENANCE

EXPENSESEXPENSES??


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Till now, there are no households connected to theTill now, there are no households connected to thedistribution network. Also, there is no regulation fordistribution network. Also, there is no regulation forenergy poverty in the natural gas sector.energy poverty in the natural gas sector.

Government of the Republic of Macedonia and MinistryGovernment of the Republic of Macedonia and Ministryfor labor and social policy are responsible to regulatefor labor and social policy are responsible to regulateand to take measures in place to address affordabilityand to take measures in place to address affordabilityconstraints and the needs of vulnerable populationsconstraints and the needs of vulnerable populations


4.4. ACTIONSACTIONS FORESEEN TO PROTECT THEFORESEEN TO PROTECT THE

VULNERABLE CONSUMERSVULNERABLE CONSUMERS ((PLEASEPLEASE

KINDLY EXPLAINKINDLY EXPLAIN))


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According to the Rulebook on the method andAccording to the Rulebook on the method andconditions for regulating the prices for transmission,conditions for regulating the prices for transmission,

distribution and supply of natural gas the depreciationdistribution and supply of natural gas the depreciationof the regulated assets is calculated according toof the regulated assets is calculated according tominimum rates regulated by low, and this is the sameminimum rates regulated by low, and this is the samemethod used in the statutory accountsmethod used in the statutory accounts


5.5. WHICH METHOD IS USED FORWHICH METHOD IS USED FOR

CALCULATION OF THECALCULATION OF THE ANNUALANNUAL

DEPRECIATIONDEPRECIATION OF THE MAIN ASSETSOF THE MAIN ASSETS??


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BUILDINGSBUILDINGS,, INSTALLATIONSINSTALLATIONS -- 2,52,5 %%

PIPELINESPIPELINES -- 2,52,5 %%

EQUIPMENTEQUIPMENT -- 5,0 %5,0 %

TRANSPORTATION MEANSTRANSPORTATION MEANS --10,0 %10,0 %

OFFICE EQUIPMENT AND OFFICE FURNITUREOFFICE EQUIPMENT AND OFFICE FURNITURE --20,0 %20,0 %

IT EQUIPMENTIT EQUIPMENT --25 ,0 %25 ,0 %


6.6. WHAT IS THE DEPRECIATION RATIOWHAT IS THE DEPRECIATION RATIO (%)(%) OFOF

THE MAIN ASSETSTHE MAIN ASSETS??


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PARTIALLY INCLUDED IN THE TARIFFPARTIALLY INCLUDED IN THE TARIFFUPON THEIR FULFILLMENTUPON THEIR FULFILLMENT


7.7. WHETHER THE CAPITAL INVESTMENTSWHETHER THE CAPITAL INVESTMENTS

ARE TO BE AGREED WITH THEARE TO BE AGREED WITH THE

REGULATORREGULATOR??

HOW THEY ARE ACCOUNTED DURINGHOW THEY ARE ACCOUNTED DURING

TARIFF CALCULATIONTARIFF CALCULATION??


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Tariffs that are regulated: transportation, distribution and supTariffs that are regulated: transportation, distribution and supply withply with

natural gas to tariff customers directly connected to thenatural gas to tariff customers directly connected to thetransportation systemtransportation system

ERC determine:ERC determine:

price for transportation and services of the system operatorprice for transportation and services of the system operator

price for supplying the tariff consumers which are connected onprice for supplying the tariff consumers which are connected onthe system for transport of natural gasthe system for transport of natural gas

selling price for tariff consumers connected on the system forselling price for tariff consumers connected on the system fortransport of natural gas ( consist of import price and tax fortransport of natural gas ( consist of import price and tax forimport, price for transport and services of the natural gas systimport, price for transport and services of the natural gas systememoperator and price for supplying the tariff consumers connectedoperator and price for supplying the tariff consumers connected

on system for transport of natural gas)on system for transport of natural gas) price for distribution and for the services of the operator of tprice for distribution and for the services of the operator of thehe

natural gas system for distribution of natural gasnatural gas system for distribution of natural gas

price for supplying the tariff consumers connected on system forprice for supplying the tariff consumers connected on system fordistribution of natural gasdistribution of natural gas


8.8. TARIFF CATEGORIESTARIFF CATEGORIES ((TYPES OF SERVICESTYPES OF SERVICES))

IN THE NATURAL GAS SUPPLY SYSTEMIN THE NATURAL GAS SUPPLY SYSTEM


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2008 Approved quarterly natural gas sale prices for captiveconsumers connected to the transmission grid

Elements Dimension I quarter II quarter III quarter IV quarter

1 Quantity of GAS imported nm3 51.527.787 17.639.877 15.620.231 35.724.273

2 Import price in foreign currency USD/1000 nm3 364,14 410,11 479,06 532,03

3 Exchange rate USD$/ . 42,7729 40,1898 40,0148 43,2105

4 Import price in national currency MKD/nm3 15,5753 16,4822 19,1695 22,9893

5 Subordinate (Dependant) costs MKD/nm3 0,3688 0,3466 0,4304 0,4940

Subordinate (Dependant) costs USD/1000 nm3 8,6223 8,6241 10,7560 11,4324

6 Price for supply and trade MKD/nm3 0,1777 0,1777 0,1777 1414

Price for supply and trade USD/1000 nm3 4,1545 4,4215 4,4409 4,1124

7 Price for transport and system operator MKD/nm3 2,2170 2,2170 2,2170 2,2170

Price for transport and system operator USD/1000 nm3 51,8319 55,1633 55,4045 51,3070

8 Pre VAT price MKD/nm3 18,3388 19,2235 21,9946 25,8780

Pre VAT price USD/1000 nm3 428,7487 478,3188 549,6614 598,8818

9 VAT ( 8 * 18% ) MKD/nm3 3,3010 3,4602 3,9590 4,6580

VAT ( 8 * 18% ) USD/1000 nm3 77,1748 86,0974 98,9390 107,7987

10 SALE PRICE ( 8+9) MKD/nm3 21,6398 22,6838 25,9536 30,5360

SALE PRICE ( 18+9) USD/1000 nm3 505,9234 564,4162 648,6004 706,6805


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2009 Approved quarterly natural gas sale prices for captiveconsumers connected to the transmission grid

Elements Dimension I quarter II quarter III quarter

1 Quantity of GAS imported nm3 20.000.000 20.000.000 20.000.000

2 Import price in foreign currency USD/1000 nm3 471,23 358,60 262,76

3 Exchange rate USD$/ . 46,33910 47,9839 44,4848

4 Import price in national currency MKD/nm3 21,8364 17,2070 11,6888

5 Subordinate (Dependant) costs MKD/nm3 0,4974 0,4148 0,3003

Subordinate (Dependant) costs USD/1000 nm3 10,7339 8,6446 6,7506

6 Price for supply and trade MKD/nm3 0,1777 0,1777 0,1777

Price for supply and trade USD/1000 nm3 3,8348 3,7033 3,9946

7 Price for transport and system operator MKD/nm3 2,2170 2,2170 2,2170

Price for transport and system operator USD/1000 nm3 47,8430 46,2030 49,8372

8 Pre VAT price MKD/nm3 24,7285 20,0165 14,3838

Pre VAT price USD/1000 nm3 533,6417 417,1509 323,3425

9 VAT ( 8 * 18% ) MKD/nm3 4,4511 3,6030 2,5891

VAT ( 8 * 18% ) USD/1000 nm3 96,0555 75,0872 58,2016

10 SALE PRICE ( 8+9) MKD/nm3 29,1796 23,6195 16,9729

SALE PRICE ( 8+9) USD/1000 nm3 629,6972 492,2380 381,5441

Documents

Macedonia Natural Gas Tariffs ERRA Countries Tariff Riga 2009 Eng