Supply

For all forms of public supply, which include all households and small business consumers, prices are set by the Energy Agency at the Ministry of Energy.

The basic principle guiding AEPS when determining the sale price of gas for public supply for all distributors in Serbia is linked to:

• by the movement of the dollar's exchange rate against the dinar,

• with the movement of the price of petroleum derivatives on the world market,

• existing infrastructure and the size of the distributor for which the gas sales price to end customers is determined.

Price determination in mentionedsubjects (households and small business consumers) is the exclusive discretionary right and duty of the Energy Agency, which exists as the sole regulatory body for this energy sector, and its decisions cannot be challenged.no distribution company in Serbia is involved. The principle for determining these prices at the Energy Agency is set out in the Agency's own programme, with a large number of factors influencing the precise determination of the saleepriceegas, and continue to be subject to all regulations in accordance with the new Consumer Law („Slavelunchtime gazette“Republic of Srpskanumber: 62/2014), when it comes to the commencement of the application of the price, the method of informing the public, consumers, etc.

The second principle of price determination is related to negotiated agreements and market-based pricing for large consumers.Public Works „Serbiagas, as the supplier of gas to public distributors offeredpriceAhGas with a capacity pricedifferent for all distributors in Serbia according to their importance and size, whereby only the initial purchase price of gas for each individual distributor is defined, expressed in dinar equivalent at the mid-rate for the US dollar. How is the dollar exchange rate on our market? changes every month,In practice, this means that the purchase price of gas will be higher for everyone. distributorsin 2018, to be different each month and determined on the basis of this criterion, taking into account the price movements of petroleum derivatives on the world market..

Distributors in Serbia do not have the opportunity to see the methodology for setting the selling price.epriceegas from the JKP „Serbiagas“, nor the possibility of verifying the other parameters that influence the formation of that price.

Determining the price between Subotica Gas Municipal Enterprise„and the contract with large consumers (customers) is defined by a contractual relationship, whereby the sale price of gas, depending on the size of the consumer, included an amount to cover the distributor's operating costs, as well as the grid tariff and a capacity surcharge.

Public utility „Subotica Gas“SuboticaHe signed a contract for 2018 with the majoritymof their own so farbusiness consumers.

It is assumed that this form of market contracting with large business consumers will become even more prevalent in the year ahead, as market conditions are set to become more established. to be variable, with the possibility of changing the contractual terms which are, for now, essentially the transferred contractual terms that were Public Works „Serbiagas sets prices for distributors.