Govt. to consider emergency financial measures

The government will today consider increasing in the guaranteed savings level, and raising excise on cigarettes.

Izvor: B92

Thursday, 23.10.2008.

11:00

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The government will today consider increasing in the guaranteed savings level, and raising excise on cigarettes. The decision to raise the guaranteed level of savings from EUR 3,000 to EUR 50,000 should enter force immediately after adoption of the law. Raising excise on cigarettes by RSD 5 could enter force on January 1, 2009. Govt. to consider emergency financial measures It is still not clear whether events linked to the gas price increases and the signing of the annex to the Srbijagas-Jugorosgas contract will be discussed at today’s cabinet meeting. Prime Minister Mirko Cvetkovic says that an idea is currently being operationalized for part of winter gas bills to be deferred until the summer, when consumption is at its lowest. “Our idea was to find a way of spreading the payments so that, from the point of view of the customer, there is no bill increase, because I think that’s what we all want, including our coalition partners. So, from the point of view of the customer, they won’t have higher bills in winter, so they won’t be at-risk,” Cvetkovic explained. As far as the level of the bill hikes are concerned, the prime minister said that he found it hard to believe that a drastic mistake was made when deciding on a 60 percent increase. To claims that distributors were charging excessive margins, he said that implementation of the new tariff system eliminated the margin as a model, and that gas transport costs that were regulated by the Energy Agency were being factored in. Srbijagas, as the main distributor, administers around 85 percent of all gas, and those expenses were under control, he said. However, according to Cvetkovic, the problem were distributors who did business according to the margin system. “Around 15 percent of the gas that Srbijagas delivers goes via local distribution, and those local distributors, and there are about 30 of them, they still do business according to the margin system. There’s a lot of diversity there. Application of the new tariff system allows the Energy Agency to include those local distributors too in the margin system,” explained the prime minister. The Parliamentary Industry Committee that convened yesterday has given the government a month to reconsider its decision to raise gas prices and to look into Jugorosgas’s brokering role. Mirko Cvetkovic (FoNet, archive)

Govt. to consider emergency financial measures

It is still not clear whether events linked to the gas price increases and the signing of the annex to the Srbijagas-Jugorosgas contract will be discussed at today’s cabinet meeting.

Prime Minister Mirko Cvetković says that an idea is currently being operationalized for part of winter gas bills to be deferred until the summer, when consumption is at its lowest.

“Our idea was to find a way of spreading the payments so that, from the point of view of the customer, there is no bill increase, because I think that’s what we all want, including our coalition partners. So, from the point of view of the customer, they won’t have higher bills in winter, so they won’t be at-risk,” Cvetković explained.

As far as the level of the bill hikes are concerned, the prime minister said that he found it hard to believe that a drastic mistake was made when deciding on a 60 percent increase.

To claims that distributors were charging excessive margins, he said that implementation of the new tariff system eliminated the margin as a model, and that gas transport costs that were regulated by the Energy Agency were being factored in.

Srbijagas, as the main distributor, administers around 85 percent of all gas, and those expenses were under control, he said. However, according to Cvetković, the problem were distributors who did business according to the margin system.

“Around 15 percent of the gas that Srbijagas delivers goes via local distribution, and those local distributors, and there are about 30 of them, they still do business according to the margin system. There’s a lot of diversity there. Application of the new tariff system allows the Energy Agency to include those local distributors too in the margin system,” explained the prime minister.

The Parliamentary Industry Committee that convened yesterday has given the government a month to reconsider its decision to raise gas prices and to look into Jugorosgas’s brokering role.

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