Decision on the amount of tariff items for the public gas supply service for the period from 1 April to 31 July 2018 and the Proposal of the new Methodology for determining the amount of tariff items for the public service of gas supply and guaranteed supply is put on a public hearing

March 5, 2018 – The Governing Board of the Croatian Energy Regulatory Agency (hereinafter: HERA), at its fifth session held on March 1, 2018, issued a Decision on the amount of tariff items for the public gas supply service for the period 1 April to 31 July 2018 . years . According to this decision, the final price of gas for household customers will not change .

The provisions of the new Gas Market Act (Official Gazette 18/18) (hereinafter: the Act), which entered into force on 3 March 2018, in the transitional period until 1 August 2018, for supply to the wholesale market is an energy company of Hrvatska elektroprivreda dd, which is obliged to sell gas to gas supply providers in the public gas supply service from the household category at the presently valid price for the period from 1 April 2018 to 1 August 2018, ie at the price determined by the price decision gas (gas, gas, gas, gas, gas, gas, gas, gas, gas, gas, gas, gas, gas, gas , etc.).

Since the remaining components of the final price of gas will not change as of April 1, 2018, the final price of gas for household customers remains unchanged, unless the provider of the public service obligation decides independently on the amount of tariff items for the public service supply gas, where the tariff items from that decision may only be lower than the amount of tariff items issued by HERA. The exact annual gas price for each customer (in certain areas of the Republic of Croatia and certain tariff models) can be checked using the iPlin application .

For the period after August 1, 2018 , it is necessary to adopt a new methodology for determining the amount of tariff items for the public service of gas supply and guaranteed supply , so at the same session a proposal for a new Methodology for which a public hearing will take place in the period from 5 to March 19, 2018.

In accordance with the provisions of the Act, a new Methodologyprovides for a method for determining the final price of gas supply in two periods, in the transitional period from 1 August 2018 to 31 March 2021 (transitional provisions) and in the period after 31 March 2021 (regular provisions). For the transitional period from 1 August 2018 to 31 March 2021, HERA is obliged to conduct a public tender and by 1 July 2018 at the latest to designate a wholesale market supplier who will, under regulated conditions, sell gas to suppliers in the public service obligation for the needs of end- household customers. For the period of April 1, 2021, HERA is obliged to conduct a public tender by 31 December 2020 and to select suppliers in the public service obligation for the needs of end-customers from the household category, whereby the role of supplier in the wholesale market is abolished,

Given that one of the basic objectives of the new Methodology is to approximate the complete market formation of the final price of gas supply, in accordance with the provisions of the new Act, the way of determining individual elements in the structure of the final price of gas supply has been changed in relation to the valid methodology. At the same time, an important element of the New Methodology Proposal for the transitional period from August 1, 2018 to March 31, 2021, is the mechanism of securing the protection of end-customers in the form of preventing large oscillations at the ultimate price of gas that could be caused by anomalies at the wholesale gas market.

A more detailed description of the way of regulating and establishing the final price of gas supply according to the New Methodology Proposal is presented in the accompanying document with the Proposed New Methodology available in the section Consultation with the interested public .

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