Decision on tariff rates for using distribution system and on tariff rates for supply of tariff customers with natural gas

Date: 30 December 2009

Pursuant to Article 4 paragraph 2 point z) related to Article 7 of the Gas law (Official Gazette of Republic of Srpska, number 86/07), Artice 37, paragraph 1, line 4 of the Procedural rules of the Regulatory Commission for electricity of Republic of Srpska (Official Gazette of Republic of Srpska, number 96/04), Regulatory Commission for Energy of Republic of Srpska, in its 1 (first) regular session, held on 30 December 2009, made

DECISION

On giving consent to tariff rates for using distribution system and on tariff rates for supply of tariff customers with natural gas

I

It is given the consent to the tariff rates for using distribution system of natural gas, contained in the Table "G.2. PROPOSED TARIFF" of the Application for approval of tariff rates for using distribution system of natural gas in Republic of Srpska number 05-81-1624/09 dated 16 September 2009, of the Joint stock company for transport and distribution of gas "Sarajevo Gas" Istocno Sarajevo, with the commencement date of application as of 1 January 2010.

II

It is given the consent to the tariff rates for supply of tariff customers with natural gas, contained in the Table "G.2. PROPOSED TARIFF" of the Application for approval of tariff rates for supply of tariff customers with natural gas in Republic of Srpska, number 05-81-1626/09 dated 16 September 2009 of the Joint stock company for transport and distribution of gas "Sarajevo-Gas" Istocno Sarajevo, with the commencement date of application on 1 January 2010.

III

Joint stock company for transport and distribution of gas "Sarajevo-Gas" Istocno Sarajevo is publishing the document on the approved tariff rates, referred to in Point 1 and 2 of the rationale of this Decision in the Official Gazette of Republic of Srpska".

IV

 This Decision is final and becomes effective on the date of publication and is published in the Official Gazette of Republic of Srpska.

Rationale

Regulatory Commission for Energy of Republic of Srpska (hereinafter Regulatory Commission) received Application for approval of tariff rates for using distribution system of natural gas in Republic of Srpska and Application for approval of tariff rates for supply of tariff customers with natural gas in Republic of Srpska of the applicant "Sarajevo Gas" Istocno Sarajevo. It was determined that the submitted applications contained certain failures, so the applicant was sent Notice on 12 June 2009 indicating that the application was incomplete with all failures mentioned, and pursuant to Article 54 and 59 of the Rule on tariff methodology in the system of transport, distribution, storage and supply with natural gas. Acting in accordance with the Notice on application, the applicant submitted corrected and complete documents on 16 September 2009.

Regulatory Commission, in its 52nd regular session which was held on 12 October 2009, having analyzed amended applications, made Decision on initiating tariff proceeding for approval of tariff rates for using distribution system of natural gas in Republic of Srpska and tariff proceeding for approval of tariff rates for supply of tariff customers with natural gas in Republic of Srpska.

Final proposal of tariff rates was precisely made by the applicant in the application for approval of tariff rates for using distribution system of natural gas in Republic of Srpska, number 05-81-1624/09 dated 10 November 2009, which was registered at the Regulatory Commission under the number 01-775-10/09 on 11 November 2009 and in the Application for approval of tariff rates for supply of tariff customers with natural gas in Republic of Srpska, under the number 05-81-1662/09 dated 16 September 2009 which was registered at the Regulatory Commission under the number 01-776-4/09 dated 16 November 2009.

Pursuant to the provision of the Article 50 of the Rule on public hearing and solving disputes and complaints, and according to Decision on initiating the tariff proceeding, the presiding office held a preparatory hearing on 5 November 2009 in the proceeding for approval of tariff rates pursuant to the application of "Sarajevo-Gas" and the minutes, number 01-775-7/09 were made accordingly.

On 11 November 2009, pursuant to Decision on conducting the tariff proceeding, the formal hearing was held where the issues nominated at the preparatory hearing were discussed, and the Minutes number 01-775-9/09 were made accordingly.

According to the submitted documents and analyses, the Presiding Officer Report was made, number 01-775-12/09 dated 14 December 2009, in which, according to the submitted facts and evidences, it was explained the justification of the requested revenue requirement for distribution and supply of natural gas for the company of "Sarajevo-Gas", a.d. Istocno Sarajevo as well as justification of the allocation of this revenue on the categories of customers, i.e. method of determination of tariff rates for the requested activities. Taking into account the stated facts and legal basis, the Presiding officer report contained the recommendation for the Regulatory Commission to make Decision on giving consent to the proposed tariff rates. The presiding officer report was submitted to the applicant with the possibility left to make comments on this report. Within the giving deadline, the applicant did not make any comments on this report.

The proposed tariff rates for using distribution system of natural gas in Republic of Srpska and for supply of tariff customers with natural gas in Republic of Srpska in the respective application were presented in the tables, as follows:

Tariff rates for supply of tariff customers with natural gas in Republic of Srpska

The applicant also proposed, in its applications, the commencement date of the tariff rates for using distribution systems and supply of tariff customers as of 1 January 2010.

Having analyzed the application with the proposed tariff rates and Presiding Officer report, Regulatory Commission, in its first regular session which was held on 30 December 2009, confirmed that the applications were justified, agreed with the recommendation made by Presiding officer and pursuant to Article 4 of the Gas law made Decision as stated in the Rationale of this Decision.

Point 3 of the Rationale of this Decision is based on the provision of the Article 43, paragraph 4 of the Gas law.

Point 4 of this Rationale of this Decision is based on:

-          the provision of Article 35, paragraph 1 of the Law on Energy (Official Gazette of Republic of Srpska, number 49/09), regarding the final stage of this Decision,

-          the provision of Article 20, paragraph 3 of the Law on Energy, regarding publication of Decision in the Official Gazette of Republic of Srpska,

-          the provision of Article 21 of the Statute of Regulatory Commission for Energy of Republic of Srpska regarding the Effective date

Lesson on the legal remedy is based on the provision of Article 7 of paragraph 3 of the Gas law and Articles 5 and 15 of the Law on the administrative disputes (Official Gazette of Republic of Srpska, number 109/05).

Lesson on the legal remedy: 

This Decision is final. The administrative dispute may be initiated against this Decision by submitting the accusation to the District Court in Trebinje within 30 days from the day this Decision was received.

President

Milenko Cokorilo