Gas

Implementation indicators

  • Unbundling

    Unbundling

    The transmission system operator is not ownership unbundled as required by the Third Energy Package. Distribution companies have less than 100.000 customers and are thus exempted from the unbundling rules.

  • Access to the system

    Access to the system

    An entry/exit transmission tariff methodology is in place, as well as provisions on capacity allocation. However, the allocation mechanisms have not been implemented in practice. The Energy Law allows for the applicability of mandatory EU Network Codes. However, this has still not been reflected in a revision of the national network code. The transmission system operator publishes only basic information, well below the scope required by Annex I of Regulation (EU) 715/2009.

  • Wholesale market

    Wholesale market

    Wholesale gas prices are fully deregulated, but not reported as required by REMIT. The market remains illiquid, without a virtual trading point. All contracts are concluded bilaterally, on a monthly and yearly basis.

  • Retail market

    Retail market

     All customers are formally eligible, and end-user gas prices are deregulated. Customer protection measures are defined in line with Annex I of Directive 2009/73/EC. The Government measures on vulnerable customers improved in the course of the latest reporting period.

  • Interconnectivity

    Interconnectivity

    Security of supply provisions are in line with Directive 2004/67/EC and comply with some provisions of non-mandatory Regulation (EU) 994/2010. The obligation to submit the Security of Supply Statement to the Secretariat was fulfilled, even beyond the requirements of the acquis. With respect to cooperation mechanisms for interconnections, the existing technical agreement for the interconnector with Bulgaria and a template for future memoranda of understanding still have to be harmonised with the Network Code on Interoperability and Data Exchange.

State of compliance

Implementation of the gas acquis has unfortunately slowed down during this reporting period. The main pending issue continues to be setting up and certifying an unbundled transmission system operator, which will unlock progress on other pending issues, such as the proper implementation of the EU Network Codes, including on interconnectivity and cooperation with neighbouring transmission system operators.

A programme for the protection of vulnerable energy customers, adopted by the Government in January 2020, increased overall customer protection at the retail level.

The company Nacionalni Energetski Resursi continues to make progress in constructing new transmission infrastructure, including in coordination with the Greek transmission system operator. However, the effects of this development are still not reflected by higher transmission or consumption rates as the newly built pipelines have not been connected to the existing network.

Despite the announced commitment to solve the long pending dispute between the State and the private supplier Makpetrol, another year has passed without implementing the settlement mediated by the Secretariat’s Dispute Resolution and Negotiation Centre, a precondition for tackling the highest priority in the country’s gas sector: unbundling the gas transmission system operator. Not having a properly unbundled transmission system operator, creates an obstacle for the new interconnector with Greece and negatively effects capacity allocation, balancing and interoperability in compliance with the gas Network Codes.

The wholesale market is deregulated. However, REMIT is neither transposed nor implemented. In the absence of a virtual trading point, gas trade is based solely on bilateral contracts. For supply there is only one source, Russia’s Gazprom. However, there is no longer a monopoly when it comes to gas imports as a few companies, mainly big consumers, have started buying gas for their own needs from suppliers other than the incumbent Makpetrol.

As for many years, the first priority for North Macedonia remains implementing transmission system operator unbundling. This is the only way the country can enable further implementation of the acquis and much needed development of its gas infrastructure.