Macedonia: EVN vs Energy Delivery Group – The liberalization of the electricity market

Published on 10. April 2014., SEE Energy News

In Macedonia some of companies will soon pay electricity less, while others are in fear of higher bills. On the first of April in Macedonia begins the second phase of liberalization of the electricity market. Thus, the 211 medium companies, with more than 50 employees and an annual turnover of at least 10 million euros, will have to buy electricity in the open market.

Some will continue to receive lower bills, and others are in fear that the cost of electricity will be increased. Macedonia produces 60 percent of electricity, while the rest of it is from import.

Third of the total monthly costs of the company “Dauti Commerce” is spending on bills for electricity. The most of electricity is consuming to maintain the temperature of eight degrees Celsius in warehouses where food is stored, which the company sells.

However, the owners of the company are hoping that the liberalization of the electricity market prices will be more favorable. “We believe that the cost of electricity in our company would be reduced for 30 percent,” said Xhemail Dauti, the owner of “Dauti Commerce”.

For medium companies 20 euros cheaper

Managers of the company say they have paid so far actively consumed energy, and for the quantity which was supposed they have used, but they did not.

“We expect that electricity, which at the moment we have as reactive or inactive, does not account for payment in the future, or to be reduced,” says Mrs. Alexandra Peroska, Manager of Finance.

In 2007, the eight largest industrial consumers began to buy electricity in the open market.

From the 1st April another 211 medium-sized companies will be joined. Thus, 30 percent of total consumption in Macedonia will be liberalized.

The remaining 70 percent are households and small businesses that will continue to pay the price of electricity determined by the state.

The company “Energy Delivery Group” is selling electricity to the largest industrial companies in the country for seven years.

They say that the companies that decide for buying the electricity from them, instead of 95 euros per megawatt hour,  that was price they were paying electricity to the state, will have an opportunity to pay 20 euros less.

 

“If we take into consideration that the price of electricity will be in average almost reduced for 20 euros per megawatt hour, and being multiply with the annual consumption of 700 gigawatt hours, we get a difference of 14 million euros. This money will remain in the accounts of 211 companies. Those companies will start buying electricity on the free market in a few days” explains Mr.Kočo Angjusev, the owner of “Energy Delivery Group”.

The industry still without benefits

The liberalization of the electricity market is in favor of the companies that use low-voltage supply, such as banks, insurance companies and companies that offer services, and they will surely pay a lower price for energy, which is not case with companies that use the medium voltage, say in company “EVN Supply”, which also sells electricity.

“The industry, unfortunately, will not have that benefit. before they had a better price on a regulated market,” says Mr. Niko Berber, manager of “EVN Supply.”

“Companies will pay for the consumed electricity, as well as for usage of distributer network. In 2015 it is announced the liberalization of the electricity market  for small businesses, too. When households will be able to decide themselves from which supplier will buy the energy is still uncertain”.

Source; Serbia Energy See Desk