Aluminum and Steel Industry will be able to provide electricity at profitable and long-term contracts. Bosnian Aluminum company changed supplier and contracted long term delivery contract with Slovenia Gen-I.
European Union plans to help energy intensive industries like aluminum and steel industry to make long-term agreements for electricity supply because big consumers were concluded to leave production in EU because of restrictions.
Even 40% of expenses goes on electricity which price in EU is much higher than in USA what makes big burden to profitability. More profitable long-term agreements are not illegal in EU but they are very complex in transmission sense because competition need to be promoted.
After EU accession, even Croatia energy company HEP stopped to deliver electricity to Bosnia’s Aluminum company according to preference conditions in benefit of TLM which were getting more profitable materials from Aluminij.
Aluminij started to buy electricity from GEN-i at tender and TLM pays according to market conditions. Commission stresses that it will stimulate signing of long-term agreements but contracts signed with monopolists will be excluded from the process.
Source; Serbia Energy See desk
