Serbia: Electricity market, About 40% of the market in Serbia free

Published on 7. May 2014., News Serbia Energy

According to EPS Supply, 56 percent of the electricity will be on the public supply during 2014^th, for their own use EPS will spend five percent, distribution losses will be 13 percent and three per cent on the network. In a free market will be 23 percent of electricity.

“Since the losses are buying on the open market, it can be said that almost 40 percent of the market is free”, said Zeljko Markovic, Acting Director of EPS Supply.

This company achieved an average price of 44.35 EUR per megawatt hour in the market, and that was an average increase in the customer’s bill of 17.7 percent. Accounts at backup supply have increased by 37.5 percent, namely, so bigger are accounts then there was no market opening.

“EPS Supply can cover the entire Serbia consummation with little import. That is why in commercial contracts we offer complete supply with the price at the stock exchange level and with a term of one year. We had two government interventions. The first time, after decree issuing, because it was not formed a distribution system operator, so it was calculated one network fee price, in order to avoid favoring some customers and damage of others. The companies in restructuring and bankruptcy represent another problem, for which no one was interested, because they have nothing to give for security, and some are not even good payers. Therefore, it was suggested the government to remain in the reserve supply “, said Markovic.

It is expected opening of the household market soon, so the question is the electricity price for them. Markovic pointed out that the current price of 5.6 eurocents in Serbia was the lowest in Europe, while in Hungary, Croatia and Greece, for example, was about 10 eurocents and at the level of the economic cost. There will not be much of a change for citizens; it will remain the public supply obligation, so it is unlikely that some trader will be able to offer a lower price than the current EPS’s. However, in some cases, for those who heat with electricity, it may be more cost effective calculation to convert on the supply from another supplier because of the high prices in the red zone in EPS.

Source; Serbia Energy