Gas

State of compliance

Montenegro transposed the majority of the Third Energy Package obligations in the gas sector via adoption of the 2015 Energy Law and the 2016 Law on Cross-Border Exchange of Electricity and Natural Gas.

There are some missing or ambiguously transposed provisions, which are expected to be rectified with the adoption of secondary legal acts. These are currently under preparation.

At present, no gas market exists in Montenegro.
 

  • Unbundling

    Unbundling

    The Law is compliant with the gas acquis unbundling and certification requirements. It sets ownership unbundling as the only possible model for the country. Montenegro’s national regulator, the Energy Regulatory Agency (ERA), adopted the Rules on certification of system operators, which are in line with the Law. The unbundling requirements for distribution and storage system operators in line with Directive 2009/73/EC.

  • Third Party Access

    Third Party Access

    Non-discriminatory access to the transmission and distribution networks as well as to storage facilities and LNG terminals is ensured by the Energy Law and the Law on Cross-Border Exchange of Electricity and Natural Gas.

    One of the missing provisions is the requirement to reason refusals or deviations from the Secretariat’s Opinions. In addition, the Law implies that only a transmission system operator can apply for an exemption, not a project promoter in general, which unduly limits the wording from the Gas Directive.

    The tariff methodologies and systems for access to networks are compliant with the Third Energy Package. The technical assistance to ERA provided for drafting methodologies for transmission, distribution, storage systems and LNG facilities, which have not been adopted by Montenegro to date, is ongoing.

  • Wholesale market

    Wholesale market

    The market is theoretically open and in line with the Third Energy Package. Market rules do not exist.  Their principles  should reflect those for the regulation of the electricity market, as foreseen by reference stipulated somewhat vaguely in the Energy Law.

    General provisions on balancing and imbalance charges have been transposed.

    However, none of the secondary acts elaborate the market concept or rules.

  • Retail market

    Retail market

    The Energy Law grants eligibility to all final customers. Nevertheless, the concept of eligibility enshrined in the Law does not specify whether wholesale customers (traders) are deemed eligible. The Law sets provisions on gas supply related to, inter alia, public supply and supplier of last resort.  The Law’s general provisions will have to be elaborated in secondary legislation.

    The Energy Law and the Law on Cross-Border Exchange transpose security of gas supply standards.

    The Energy Law transposes customer protection measures as well as measures to protect vulnerable customers, though some provisions of Annex I of Directive 2009/73/EC related to contractual rights of customers are missing.

  • Interconnectivity

    Interconnectivity

    Montenegro strongly promotes the Ionian Adriatic Pipeline (IAP) project as the most feasible opportunity to bring natural gas supplies to its territory. The IAP should connect the existing Croatian gas transmission system with Montenegro and Albania via the TAP.

    The Law on Cross-Border Exchange of Electricity and Natural Gas obliges the Government to adopt the relevant by-laws related to security of supply within twelve months after the final investment decision on the relevant gas infrastructure is adopted.