Serbia, Bosnia, Croatia, Macedonia, Montenegro: Electricity markets, wholesale and retail

27. April 2015. / SEE Energy News

Electricity markets in the region of Balkans-South East Europe are fully liberalized. Prices of the electricity are volatile and different in each market. Active traders have different strategies for big and retail clients. Prices still influence the level of development of the each market. Considering the expected price increases in all countries, energy companies seeking needed cash for investments, it is expected that the region of Balkans will comply with overall SEE regional price framework.

Serbia, Bosnia and Herzegovina, Macedonia and Montenegro opened completely their electricity markets as of January the 1st 2015. Markets of Slovenia and Croatia are already completely liberalized, meaning that in these countries households and small consumers already have the right to choose their electricity supplier.

Buyers in Slovenia are familiar with market rules for quite long time. Beside business enterprises, since five years ago households in Slovenia can choose who will be their electricity supplier. The competition, as market rules usually bring about, brought with it lower kwh prices in 2009. as well as other benefits, like guaranteed period of electricity price stability or first electricity bill free of charge. In Slovenian market five electricity transmission companies compete for consumers, – “Elektro energija”, “Energija plus”, “Elektro Celje Energija”, “Elektro Gorenjska prodaja”, E3, than “Petrol”, GEN-I, and several other small suppliers oriented on certain market niches.

More than a year ago, in Croatia GEN-I and RWE offered lower kwh prices compared to what HEP charged to households and small consumers, forcing HEP to correct prices in order to retain its buyers. Last year significant public attention was caused when 35 Croatian ministries and government administration offices opted for HEP’s competitors, and after conducted tender, signed two year contract for electricity supply with GEN-I. In Croatian market now operate HEP, GEN-I, RWE energija, “Proenergy”, NOX grupa, Rudnap, Hrvatski Telekom, Korlea i Petrol.

In Macedonia, all buyers except households are on the market since April 2014 as explained by Macedonian Regulatory commission for energy. Since then 222 big companies and institutions, joined afterwards by another 11 big buyers, were able to choose whether to buy electricity from one of 9 licensed suppliers or from electricity traders. From the 1st of January 2015. small consumers and households will join the market.

Those that opted for one of the licensed suppliers in non regulated market must sign a contract with them, by middle of November at latest. Small consumers and households, who do not do accordingly, will be further supplied by current supplier, at regulated prices.

Since 2009., electricity market in Montenegro is opened for all buyers, except households. From next year on, all subjects including households will become qualified buyers, meaning that they will have the right to choose their supplier. At this moment, license to supply possess EPCG Snabdevanje and “Montenegro Bonus”, the supplier of Aluminum Combine Podgorica (KAP), who shows no intentions of expanding its business to other consumption categories.

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