The Regional Administrative Court has dismissed as unfounded a complaint by the country's largest producer of nitrogen fertilisers, „Achema“, against the State Energy Regulatory Council (SERC) for 2024, after it set the amount of the security component, which the company claims encourages the monopolization of the natural gas market.

In November 2023, VERT set the additional security component to the natural gas transmission price at €205.93/(MWh)/day/year from 1 January 2024.) VERT also set the administrative costs for the LNG terminal at over €125,000, which is also included in the security add-on.

As argued by „Achema“ in its complaint, the regulator exceeded its competences under the Law on the LNG terminal by setting the average gas import price.

„The level of the LNG terminal surcharge creates conditions for monopolisation of the market and distorts competition, restricts the free movement of goods, and the principle of transparency has been violated in the adoption of the Resolution“, the court

.

The court rejected these arguments as unfounded and subjective.

„The Court stated in its decision that in the case at hand, the Council did not commit any error in the exercise of its discretion, did not abuse its powers and did not exceed the limits of its discretion, and that in adopting the contested resolution it complied with the procedural rules, and that therefore, there is no legal basis for its annulment on the grounds set out in the complaint, “,“ as stated by the Administrative Court of the Region in the decision.

This decision is subject to appeal.

The security levy is intended to collect funds to ensure the operation of the LNG terminal, to compensate for the costs of its infrastructure and interconnection, and for all fixed operating costs that are not included in the other prices regulated by the State.

The amount of the security add-on shall be set annually by VERT, which may subsequently adjust it no more than twice a year.