FAS PROPOSES TO SWITCH TO TARIFF MODEL “FEE FOR ENTRANCE – FEE FOR EXIT” FOR GAS TRANSPORTATION SERVICES THROUGH MAIN GAS PIPELINES

This measure is contained in the draft roadmap for the development of exchange trading.

FAS proposes to switch to the tariff model «fee for entrance – fee for output» for gas transportation services through main gas pipelines. It is a formation of several macro zones, taking into account gas fields and extensive gas transport infrastructure.

It will allow to sell gas inside the macro zone without being tied to its physical location. Any gas, regardless of where it came from and where it will be delivered in the future, has the same economic efficiency of supply, which creates the most optimal conditions for the organization of impersonal exchange trading.

The proposed system of tariffing allows to create a virtual balance point in each of the macrozones, where both exchange and over-the-counter transactions can be made, including the purchase, sale and resale of excess gas by end users and traders, which, in turn, will effectively implement a commercial gas balancing system.

The Authority believes that it is necessary to establish a transition period of 3-5 years with the preservation of the values of the last established tariffs.

At the same time, the mechanism of gas tariff formation for households will remain the same, and unjustified growth will be curbed.

The proposed measures will ensure stable gas supplies to all regions, increase the liquidity of gas exchange trading due to the concentration of supply and demand at a virtual balance point and standardize gas transportation conditions for independent producers and end users.

Earlier, FAS proposed to establish sales standards for Gazprom PJSC (at least 10%) and independent producers (at the initial stage at least 3%, then also at least 10%).