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1. januára 1970 Ostatné od Energia.skSITA

State gives green light to increasing household gas prices

Case: Changes in natural gas

prices for households in Slovakia

Natural gas prices as well as prices for natural gas for heat generation for Slovak households might increase already at the end of this year. The state, as a majority share holder in the company Slovak gas industry (Slovenský plynárenský priemysel a.s.), gave a green light to two proposals of the company. The price changes must be now approved by the Regulatory Office for Network Industries (ÚRSO).

During an exceptional plenary session of the SPP that took place on Thursday (2nd September), the SPP management introduced four proposals for gas price changes.  Two proposals, both valid from 1st November 2010 if approved, will now  be submitted to ÚRSO.

For natural gas pries for Slovak households, SPP management proposed the following two suggestions:

A proposal effective from 1st November 2010 that proposed a price increase by 7,5 %

A proposal effective from 1st December 2010 that proposed a price increase by 27,6 %

In case of the price for natural gas for heat generation that is supplied to households, the following two proposals were submitted:

A proposal effective from 1st November 2010 that proposed a price increase by 10,1 %

A proposal effective from 1st December 2010 that proposed a price increase by 35,3 %

The state representative from the Ministry of Economy and Construction approved both the proposal valid from 1st November and said that they are well founded and reasoned. 

According to Ondrej Šebesta, spokesman of SPP, increasing the prices is a right move. The main reason why SPP wants to increase the prices is the gradual  increase of cost price for natural gas. SPP pays for the natural gas in US dollars and since the beginning of 2010, the exchange rate of euro fell more rapidly against the US dollar as SPP expected when it was setting the average prices for the year 2010. Already now the company reported a loss of tens of millions euro.

Week in Slovakia

Monday – 30th August 2010

The capacity of natural gas storage tanks in Slovakia will expand by 200 mil. cubic metres during the next three years. Currently 2,77 bill. m3 of natural gas can be stored in the geological formations in the south-eastern part of the country.  Under normal conditions, the capacity of approximately 1,5 bill. m3 for is being used for economy needs. Slovakia also uses one storage tank located in Czech Republic in Dolné Bojanovice. The capacity of this storage tank is 0,57 bill. m3.

Tuesday – 31st August 2010

According to the representatives from the Association of electricity suppliers (ZDE), electricity prices will not increase in 2011. According to Martin Ondko from company Magna E.A., it even might be possible that due to increasing competiveness on the electricity market the prices can fall slightly. 

Wednesday – 1st September 2010

Wholesale electricity spot market between Slovak and Czech Republic is functioning for a year now. In Slovakia, the short-term trading is organized by the Slovak electricity transmission system (SEPS). According to electricity traders, the creation of the joint spot market was a positive step, which increased liquidity of Slovak electricity market.

Thursday – 2nd September 2010

New proposals for natural gas prices and  natural gas for heat generation prices for households were discussed during a plenary session of the company Slovak gas industry (SPP). Two out of four proposals were approved by the state representative. However, the final approval must be taken by the Regulatory Office for Network Industries.

European Union and World

Monday – 30th August 2010

Until now, the European Commission has received 19 National action plans for renewable energy use from EU member states. In case that the remaining eight countries do not fulfil their obligations and hand in the action plans in the near future, the EU is planning to take legal steps against them in accord  with the valid legislation.

The generous state subsidies for solar industry in Czech republic caused that  electricity prices might increase by 22 % next year. Gainfulness of this business caused that a vast amount of people is interested in conducting business in electricity production from solar energy. The Energy regulation office currently registers more than 10 thousand licences for electricity production from solar installations.

A new wind energy park will be built in Bulgaria. The total installed capacity of the wind park will reach 180 MW and will be constructed by the German-Bulgarian company SRS-Bulgaria. The wind park should be put into operation in 2011.

Kazakhstan might double the export tariff for oil at the beginning of next year. The increased tariff could then reach 40 US dollars. The country is the biggest oil producer in Central Asia.

Norway and its rich water resources can according to the International Energy Agency can contribute towards development of renewable energy source in Europe. By constructing electric networks and connections between the Scandinavian country and European countries, a reserve that could cover the fluctuations in power generation from other unpredictable sources, would be created. Great Britain has already expressed its interest to create an undersea connection with Norway.

Tuesday – 31st August 2010

European Union expressed its worries about the planned agreement between Russia and Poland on natural gas supplies via the gas pipeline Yamal. The problem with the deal are its conditions, as they do not comply with rules of the single European energy market. Poland will receive 10 billion cubic metres of gas annually if the deal is signed.

Germany is against the construction of a LNG gas terminal in Poland. Berlin fears that the terminal could have negative environmental impact on the Szczecin lagoon, which lies on the territory of both states. Before the EU give Poland a grant for the construction, Germany wants Poland to carry out an environmental impact analysis. A different reason behind the German fears and criticism could be the fact that the terminal will be a rival to the natural gas pipeline Nord Stream, which is supported by Germany. The pipeline should also deliver natural gas to Poland. If Poland has to carry out the analysis, opening of the terminal might be delayed for at least 2 or 3 years.

A biodiesel power plant with a total installed capacity reaching nearly 1 MW will be put into operation in Slovenia. The power plant will use waste vegetable oil imported from Austria as fuel. Apart from electric energy, the power plant will also produce heat. The electricity will be used to power a rollercoaster that should be constructed in the near area of the biodiesel power plant.

German nuclear power plants will more than likely stay in operation until 2036. According to German Chancellor Angela Merkel, the current plan to phase out the power plants in 2021 is unrealistic if the country want to meat its environmental goals. An expert study that was ordered by the government came to the same conclusion.

Russian state company Rosneft wants to buy shares in four German refineries. The deal is expected to be signed at the end of September or beginning of October. If the deal is signed, it will be the biggest investment of a Russian energy company in western Europe. The majority share of Rosneft is owned by the Russian government.

Royal Dutch Shell will open a new oil pipeline in Nigeria. The length of the pipeline should be 97 kilometres and transport 600 thousand barrels of oil per day.

German company RWE is taking part in constructing a power plant with a total installed capacity of 775 MW in Denizli, Turkey together with a local investor. The powet plant will be a combined cycle gas turbine plant and should be put into operation in 2012.

A new heat power plant with a total installed capacity of 920 MW will be constructed in Belarus until 2016. The deal about the construction was signed by a Polish supplier Kulczyk Holdings and Belarus company Grodnoenergo. The investment is approximately 1,5 bill. Polish zloty.

Germany will help Ukraine with restructuring the market with natural gas. The deal was signed in Berlin during a meeting of German Chancellor Angela Merkel and Ukraine President Viktor Janukovych.

Wednesday – 1st September 2010

The financial group J&T is increasing its influence in the Czech petrochemical company Unipetrol. A year ago, the group owned 7 % of the stakes in Unipetrol. According to unofficial information, its influence is estimated at 10 % this year. The majority shareholder of the Czech company is the Polish energy giant PKN Orlen.

Thursday – 2nd September 2010

British electric energy supplier EDF Energy will increase electricity prices at the beginning of October in some areas of Great Britain. The measure will affect more than one million of British households. It is the first growth of energy prices on the British islands since summer 2008.

The Czech government is searching for a way how to prevent the country from next years´ increase of natural gas price. The households might face a 22 % increase in the price. Czech Prime Minister Petr Nečas proposed during a government meeting that they should call on the investors in the photovoltaic industry to give up a part of the state subsidies.

Russian energy giant Gazprom tripled its revenues in the first quarter of 2010 in comparison with last year. The net profits of Gazprom was 324,95 bill. Russian rubels during the three months.

The company Facebook is constructing a gigantic date centre and plans to run it on electricity produced by burning coal. Greenpeace is now appealing to Facebook´s social responsibility and is organizing a protest petition fro renewable sources on the social network.

Friday – 3rd September 2010

Natural gas prices will not change in France this year. The biggest seller and ex-state monopoly GDF Suez will wait until an analysis from the state regulator about the possibilities of changing the formula by which the price is being set, is published. The new pattern should protect French customers from sudden price rise. The prices have already changed twice in France this year, in April and July.

Russian Gazprom signed a deal with Azerbaijan on natural gas deliveries. Based on the agreement with the state company SOCER, the volume of Azeri gas imported to Russia will reach 2 bill. m3 next year.

According to the International Energy Agency, the world oil market is currently well supplied. It is expected that during the next ten year supplies from OPEC (Organization of the Petroleum Exporting Countries) will increase.

Turkey and European Union will be able to trade with electric energy starting of in October. Trading will be enabled thanks to a mutual connection with an intelligent network (Smart Grid), which allows two-way flow of electricity.

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