North Macedonia: Increase of electricity price not expected this year

, SEE Energy News

The electricity price hike for residential consumers is not expected in 2021, said North Macedonian Prime Minister Zoran Zaev. PM Zaev said that the Government has the appropriate policies to cover the gap between the price of electricity that is being supplied to residential consumers by universal supplier (EVN Home) and the price of electricity on the free market.

However, he announced significant investments in solar and wind projects, as well as gas-fired power plants, which are needed in order for the country to make transition to green economy, However, these investments will probably lead to an increase in electricity prices for households in the long-term.

He said that currently, North Macedonia produces about 78 % of its electricity from coal, and these investments will enable the closure of coal-fired thermal power plants by 2030. He said that there is enough coal for the operation of these plants, if not in Macedonia, then it could be cheaply imported from the region, said Zaev and reminded that coal from Kosovo is already imported for TPP Oslomej.

Earlier this week, electricity transmission system operator MEPSO requested an increase of electricity transmission fee of 143 %. This fee constitutes about 3.5 % of the final price of electricity. At the same time, electricity distribution system operator, whose share in the formation of the final price is 36 %, requests an increase of its fees by 0.95 %. Taking these two requests into account, the price of electricity for residential consumers could be increased by the maximum of 5 %. Regulatory Energy Commission (RKE) will have the final say regarding the price of electricity for residential consumers for a new, one-year regulatory period, staring on 1 August 2021. In 2020, electricity price was increased by 7.4 %.