Gov't adopts guidelines for Srbijagas restructuring

BELGRADE - The Serbian government adopted the guidelines for restructuring Serbia's state-owned gas provider Srbijagas at a meeting Thursday, the Ministry of Energy and Mining said in a release.

This is an important first step in making Srbijagas a market-oriented, profitable company, the ministry said.

The issues of legal unbundling of transmission and transmission system management and distribution and distribution system management, in compliance with relevant provisions in Serbia's Energy Law, and of the creation of a holding company with joint departments within the holding, aimed at creating a simpler operating model and a more efficient way of management, will be resolved in the first phase of restructuring, until June 30 next year.

The main objective of Srbijagas' restructuring is to consolidate the company.

Following the restructuring, Srbijagas will be able to secure supply of natural gas to the market and increase the company's investment and development potential.

The plan for the reorganization of the public enterprise is in compliance with the requirements of the European Union's Third Energy Package and with the commitments under international agreements (Stabilisation and Association Agreement; Treaty establishing the Energy Community), says Energy and Mining Minister Aleksandar Antic.

The restructuring of Srbijagas will increase efficiency and transparency in the energy market by ensuring reliability and long-term predictability in the provision of services in connection with trade, storage, transmission and distribution of natural gas.