Serbia: Electricity market analysis and possible further improvements

, News Serbia Energy

Based on the experience of establishing the electricity market within the region, as well as in the countries of the European Union, there is no universal model electricity to establish an market, this is concluded by the authors Marko Jankovic, Ana Veselinovic and Marko Zaric from JP Elektromreza Srbije at the 32nd Conference CIGRE. Regulated relations between market participants through appropriate laws and regulations, key market data transparency, as well as timely development of information infrastructure in support of market processes, are indicators of an efficient and successful electricity market.

By changing the legal framework in 2011, the application of market rules in January 2013 and, by implementing the concept of balance responsibility and establishing the balancing market, the Republic of Serbia began integrating its national market with the regional, single European electricity market. The adoption of market rules allowed the most numerous group of market participants, customers, the right to freely choose their electricity supplier. On the other hand, clearly defined rights and obligations of participants through the concept of balance responsibility influenced the increase in the number of newly licensed companies for the supply of electricity. For the first six years, the Energy Agency issued a total of 40 licenses for electricity supply.

The adoption of the new Energy Law in December 2014, made the harmonization of national legislation with the European Union possible. The energy sector has made this preparation for the full implementation of the third energy package, which continued liberalization and market development.

From the aspect of end customers, opening of the electricity market can be divided into three phases. The first phase took place in 2013 and referred only to the delivery points connected to the transmission network. All the companies were obliged to resolve the issue of balance responsibility for their respective delivery points and ensure the supply of electricity under market conditions. In the second phase in 2014 all delivery points in the distribution network that did not belong to the category of households and small customers had an obligation to enter the free electricity market and regulate the issue of balance responsibility. The final stage of market opening started in January 2015 and it was important for households and small consumers as it allowed them to enter the market and change their supplier. The specificity of this phase were the changes made to the legal framework and defining of the new criteria for small customers. The new Energy Law stipulates an additional requirement for classification of end customers into the category of small customers, i.e. the ones with the annual consumption of 30,000 kWh.

Maintaining the energy balance inside the control area is one of the main tasks of the transmission system operator, due to the fact that electricity cannot be stored and that it is practically consumed at the moment when it is produced, transmits