Transmission Fees

The fees for natural gas transmission are supervised by the Natural Gas Authority, and are determined according to the capacity rates and the cost of service rate.

The capacity rate is set by the Natural Gas Authority Committee and is intended to cover company expenses. Currently, two thirds of the rate is linked to the CPI and one third to the U.S. dollar.

In addition to the transmission fee, the natural gas customer bears additional expenses:

  • The cost of the gas itself as determined by the supplier (an unsupervised rate);
  • The local distributor’s fee, supervised by the Natural Gas Authority, based on the distribution area and the customer’s market share in conjunction with the results of the local distribution tenders;
  •  The fee for connecting to the local distribution network – a one-time fee for the physical connection to the pipelines through which the low-pressured gas is transmitted to the customer’s facilities. This supervised fee is based on the customer’s market share and consumption rates.