Serbia: Change of supplier and balance groups, challenges and issues in 2014 market liberalization

6. July 2015. / News Serbia Energy

During 2014 and electricity market liberalization in wholesale market in Serbia several issues were identified. Distribution network market opening has not been properly aligned from the aspect of technological equipment of the energy sector. The lack of digital meters and the possibility of direct measurement of hourly values ​​at the grid access points that are connected to the distribution network has significantly influenced the accuracy of the calculation of balance groups deviation.

The lack of remote meter readings had an impact on the process of changing the supplier, i.e. the composition of balance groups. A large number of grid access points entering the market in 2014 in the cases of end buyers with a large number of measuring points could not have been controlled adequately. Consumption profiles have fulfilled its primary purpose, which is to provide hourly billing data. The point of further development of the energy sector in the field of the distribution network should not be the improvement of the consumption profile in order to obtain more precise hourly values, but the modernization of information infrastructure and procurement of appropriate digital meters.

Process of the change of the supplier; Balance responsible parties register

The change of supplier, i.e. the formation of balance groups is one of the most complex market processes from the point of connection of a large number of market participants. Therefore, the process must be synchronized with clearly defined obligations of all participants. The lack of discipline of market participants may cause multiple consequences. Given that in 2014, 1,658 grid access points on the distribution level has changed supplier, and that as of 01 July 2015, the application of new requirements for the categorization of buyers, market over 25,000 measuring points are expected to enter the market, so it is clear that special attention must be paid to the effective functioning of the process of change of supplier.

With regard to the stated number of grid access points who changed the supplier during 2014 and the fact that in this process there were 10 balance responsible parties, it can be concluded that the transmission and distribution system operators have successfully implemented this process. The main disadvantage was represented by two things:

Lack of adequate balance responsible party register through which by applicative surrounding, it would be easier to control the grid access points and connect the participants positions in the market adequately.

Currently prescribed obligations of the participants in the process of the change of supplier, where the problem occurred in 2014 of the lack of defined deadline in the initial phase of this process – the deadline within which the current supplier has been obliged to issue a certificate to the buyer that all due liabilities under the currently valid contract on supply between the supplier and buyer were settled.

The development and establishment of a register of balance responsibility in the form that would satisfy the administration of complex market process certainly represents one of the primary goals of the transmission system operator. Such a registry, which would constitute the base of all grid access points, would greatly facilitate the implementation of procedure of the change of supplier, i.e the composition of the balance group.

Not defining the deadline for issuing the certificate to the buyer, in 2014 led to prolonging the process of changing the supplier. End-buyers, due to non-issuance of certificates within deadline, could not reconcile their desires with the obligations in the electricity market. , transmits Serbia-energy.eu

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