The termination of free-of-charge connections to the country’s gas grid as of January 1 is expected to prompt a slowdown of new residential connections in most parts of the country.

Under the new system, consumers will be required to either fully or partially cover connection-fee costs, depending on their respective area’s natural gas penetration levels.

Previously, RAAEY, the Regulatory Authority for Waste, Energy and Water, offered consumers a universal 100 percent discount on connection fees, which fueled strong growth in new gas-network connections and also subdued network usage tariffs as a result of greater consumption levels and their economies of scale.

According to the new system, consumers in municipalities with low-level natural gas penetration levels are expected to still be offered connection-fee discounts of up to 100 percent.

Consumers based in municipalities where natural gas penetration is between 25 and 75 percent will be granted a connection-fee discount of up to 70 percent in 2024 and 60 percent in 2025.

Connection-fee discounts are expected to be scrapped for consumers based in municipalities with natural gas penetration rates of more than 75 percent, according to the RAAEY decision.