The Board of Directors’ meeting is in progress at the Gazprom Headquarters.

The Board of Directors has taken notice of the information on the calculation principles for internal settlement tariffs for gas transmission services. The Management Committee was entrusted with continuing the work to streamline the corporate tariff calculation methodologies and manage subsidiary expenses for higher transmission efficiency and unit cost optimization purposes.

Reference:

The Federal Law on the Gas Supply in the Russian Federation states that for the purpose of settling accounts between companies forming part of the gas supply system the company owning this system sets internal settlements prices and tariffs for gas transmission services.

When calculating internal settlement tariffs for gas transmission services the system owner should respect the principles of offsetting economically substantiated expenses incurred by subsidiaries, gaining a profit necessary to cover their socioeconomic development needs and including taxes and other statutory charges in the tariff structure.

Since January 1, 2006, Gazprom has switched to a two-rate tariff system in its intragroup transmission account settlements. The move aims to cut the parent company’s costs when settling transmission accounts with subsidiaries and, consequently, enhance the gas transmission efficiency.

In future, the tariff calculation system should be based on the cost optimization principle to be respected through the introduction of progressive transmission techniques and technologies.