Tadić warns of gas distributor monopoly

President Boris Tadic is carefully analyzing the behavior of gas distributors after receiving information on the existence of monopolists. Tadic told journalists that Prime Minister Mirko Cvetkovic had already suggested measures that should be undertaken in order to protect customers who use gas for heating their households. One such measure is an analysis of the behavior of distributors. Tadic warns of gas distributor monopoly “We’ve received information that there are monopolists among the gas distributors, and the government is analyzing their behavior, and their commission, which, at times, is extremely high,” Tadic said. A second measure would be to spread payments of gas bills over installments. Following the dramatic rise in the price of gas, Tadic said that he had received an explanation that the price had not changed for years and that, as a result, the entire gas industry in Serbia had suffered serious losses. He said that the price of gas could stay as it was if it was subsidized by the tax payer, but added that households that used wood and coal for heating would then have to pay for those who used gas. “That’s unfair and immoral,” Tadic stressed. "I would like things here to be cheapest in the entire world, but we don’t have gas and we import it at world prices, which have gone through the roof,” the president said. Tadic said that the market was currently calm, and that there was a possibility that prices might drop, but that it was not something that could be promised. He said that measures needed to be found to allow gas prices in Serbia to follow trends on the world market. Boris Tadic (FoNet, archive) Gas price fate shrouded in uncertainty Though PM Mirko Cvetkovic has announced new financial measures to delay increases in phone bills, the situation surrounding gas prices is still unclear. Telekom Serbia has stated that it will not increase the prices of telephone services until the end of the year, but that sign-up fee for landlines will be higher. According to a statement, this agreement was reached in a meeting between Cvetkovic and Telekom Serbia CEO Branko Radujko. However, there is still no clear answer on whether gas prices will be higher this winter season. The Mining and Energy Ministry claims that the decision to raise gas prices stands, and that customers who use gas heating will pay their bills in two installments in order to spread out the cost. However, Aleksandra Jerkov of the League of Vojvodina Social Democrats (LSV) told B92 that her party had been promised that the price of gas would remain unaltered. “That was an agreement made within the ‘For a European Serbia’ coalition. We did not directly contact Energy Minister Petar Skundric, we were in contact with our coalition partners in the Democratic Party. In any case, we should wait for Thursday’s cabinet meeting,” Jerkov said. “We have been told that a decision will be made at the cabinet meeting that the price for households and individual gas customers will remain unchanged,” Jerkov concluded.

Tadić warns of gas distributor monopoly

“We’ve received information that there are monopolists among the gas distributors, and the government is analyzing their behavior, and their commission, which, at times, is extremely high,” Tadić said.

A second measure would be to spread payments of gas bills over installments.

Following the dramatic rise in the price of gas, Tadić said that he had received an explanation that the price had not changed for years and that, as a result, the entire gas industry in Serbia had suffered serious losses.

He said that the price of gas could stay as it was if it was subsidized by the tax payer, but added that households that used wood and coal for heating would then have to pay for those who used gas.

“That’s unfair and immoral,” Tadić stressed.

"I would like things here to be cheapest in the entire world, but we don’t have gas and we import it at world prices, which have gone through the roof,” the president said.

Tadić said that the market was currently calm, and that there was a possibility that prices might drop, but that it was not something that could be promised. He said that measures needed to be found to allow gas prices in Serbia to follow trends on the world market.

Gas price fate shrouded in uncertainty

Though PM Mirko Cvetković has announced new financial measures to delay increases in phone bills, the situation surrounding gas prices is still unclear.

Telekom Serbia has stated that it will not increase the prices of telephone services until the end of the year, but that sign-up fee for landlines will be higher.

According to a statement, this agreement was reached in a meeting between Cvetković and Telekom Serbia CEO Branko Radujko.

However, there is still no clear answer on whether gas prices will be higher this winter season.

The Mining and Energy Ministry claims that the decision to raise gas prices stands, and that customers who use gas heating will pay their bills in two installments in order to spread out the cost.

However, Aleksandra Jerkov of the League of Vojvodina Social Democrats (LSV) told B92 that her party had been promised that the price of gas would remain unaltered.

“That was an agreement made within the ‘For a European Serbia’ coalition. We did not directly contact Energy Minister Petar Škundrić, we were in contact with our coalition partners in the Democratic Party. In any case, we should wait for Thursday’s cabinet meeting,” Jerkov said.

“We have been told that a decision will be made at the cabinet meeting that the price for households and individual gas customers will remain unchanged,” Jerkov concluded.