Tariffs

In the regulated sectors, public service providers calculate tariffs in accordance with specific tariff calculation methodologies:

• Methodology on calculation of natural gas transmission system tariffs;
• Methodology on calculation of natural gas storage service tariffs;
• Methodology on calculation of natural gas distribution system service tariffs;
• Methodology on calculation of natural gas price to related users.

A provider of natural gas supply services on its own initiative or at the PUC’s request submits to the Regulator the calculated tariff proposals together with the justification of costs that form tariffs mentioned in the tariff proposal.

The PUC evaluates the tariff proposal which was calculated according to a specific procedure and submitted by the public service provider and assesses the justification of costs that form tariffs mentioned in the tariff proposal within 90 days after its receipt. If the PUC finds that the tariff proposal has been calculated incorrectly or the costs that make up tariffs are unjustified, within ten business days, the Regulator may order the public service provider to recalculate the tariff proposal or may reject the tariff proposal.

Tariffs shall be set at such a level so that tariff payments made by users would cover economically justified costs of public services and ensure the profitability of public services unless special laws of the sector provide for other principles of tariff-setting.

If factors that affect tariffs (for example, profitability) change, the PUC may suggest a review of tariffs and request a public service provider to submit a calculated tariff proposal within a specific deadline together with justification of costs that form tariffs.