Serbia: Electricity market, 70 traders to fight for customers with prices and conditions, consumers not ready for market rules

27. December 2013. / News Serbia Energy

At the beginning of this year, although it almost was not noticed in the public, began the liberalization of the electricity market in Serbia, and that process will continue next year, but also in 2015th. The liberalization and opening of the electricity market means opportunity, and sometimes the consumer obligation to enter into contracts with electricity suppliers in the market. For now, this applies only to large companies, but for a year also households will enter into such contracts.

The liberalization of the electricity market should bring significant changes in the country – to abolish monopoly in this area and introduce competition. Such a step, due to the competition growth and struggle for every consumer, has led to lowering kilowatts prices in developed countries, and in recent months this happens in Croatia. Whether something similar should be expected in Serbia, especially in 2015th, when all consumers will be able to choose a supplier, we will see. The current electricity price in Serbia is the lowest in the region and the big question is whether there is space for kilowatt to be cheaper.

Thus, the market opening has started this year for the customers at high voltage. Among them there are large electricity consumers, mainly large factories and processors: “Petroleum Industry of Serbia”, “Belgrade Power Plants”, “Lafarge”, “Azotara”, “Petrohemija”, “Fiat” … at the beginning of this year there were 26 customers. It is interesting that only one of them chose one of a total of 70 licensed electricity suppliers in Serbia, and did not elect “Serbia Power Utility Company”.

What small consumers at high voltage have had during this year, that the consumers at medium voltage will be able to buy from the beginning of the next year, namely near 3.200 consumers, which also refers to the big companies, because the electricity market opens for them.

According to the Energy Law, these consumers also will be able to buy electricity from any of the suppliers and need to get on the market and to sign a new contract on electricity supply.

The largest traders in the domestic market are Slovenia’s GEN, EFT and “Rudnap”

Besides EPS, the electricity will also sell Czech CEZ…

Without obligations

The market opening for all consumers begins on 1st January 2015th when it will include both the small customers and households. However, on this consumers’ category are applied somewhat different rules than those for the high and medium voltage. Specifically, they will have the ability or the right to choose a supplier, but not the obligation to sign new contract for the electricity supply.

The so-called small customers are consumers who have less than 50 employees and a total annual income of less than ten MEUR in dinar counter value. Also, these are the consumers who are connected to the distribution system of voltage lower than one kilo volts.

Source; Serbia Energy

 

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