January the 9th, 2024 – The largest Croatian gas producers are going to have to report their transactions to the European Commission (EC) in advance under new rules.
As Novac/Jutarnji/Vedran Marjanovic writes, the largest Croatian gas producers, traders and suppliers such as PPD, HEP-Plina, E-ON Plina and Zagrebačka plinara will soon have to report part of their gas purchases to the European Commission. This new regime follows on from the Ordinance on cooperation within the EU on the purchase of gas.
The new regime which will subject the largest Croatian gas producers to transaction reporting is part of w much wider process. This process will align the Croatian gas market with the outlined policy of gas procurement of the EU Member States through a single procurement platform to which Croatian “gas suppliers” will have to register when the new rules enter into force.
“This new Ordinance introduces temporary mechanisms to protect both the general public and the economy from excessive gas prices in order to fairly distribute gas across the borders of EU countries, protect the supply of gas for the most critical customers, and ensure the provision of cross-border solidarity measures,” the proposal of the Ministry of Economy emphasised.
By creating a single platform for gas procurement, the European Commission wants to avoid mutual competition between traders and suppliers, which would lead to price increases. They also want to curb the possibility of some customers being left without the necessary quantities of gas due to weaker purchasing powers. The platform became operational back in May last year, and in the first collection of gas purchase requirements, 25 suppliers from across the EU expressed the need for 13.4 billion cubic metres of gas.
“This mechanism will support EU countries’ efforts to meet their gas storage obligations for next winter, all while strengthening our common energy security at competitive prices. Further tenders will follow every two months until the end of the year,” European Commission Vice President Maroš Šefčovič revealed at the launch of the platform.
Although 39 companies are registered in the register of the Croatian Energy Regulatory Agency for gas supply, and another 42 for trade, not all of them will be bound by the aforementioned new regulation. The full name of the new regulation is the Ordinance on the coordinated purchase of gas at the level of the European Union for the needs of Croatia. A “bar” has now been set, namely, at least 5,000 gigawatt hours of annual wholesale gas turnover for traders and 2,500 gigawatt hours of annual gas delivery for suppliers.
When it comes to the actual size of the transactions that Croatian gas producers and other such companies must report to the European Commission, this obligation will apply to all purchases greater than 1.5 percent of the total gas turnover in 2022 for the gas company in question. Participants on the platform will have to report not only how much gas they want to purchase and the conclusion of a contract, but also the opening of purchase negotiations.