Serbia electricity market liberalization, those operating with losses worry about the price and high voltage

Published on 11. December 2012., News Serbia Energy

They were already doing bad with debts for electricity, and after New Year they will have to pay for electricity at market rates. Most consumers would be the first to feel the effects of the liberalization of high voltage market, and among them are companies which did not pay their bills for years.

From January 1, 2013, twenty of high-voltage consumers will choose their electricity seller in the market. If they would like to remain true to “Electric Power Industry of Serbia”, they will no longer get controlled prices in this state company.

– Companies will choose dealers who can buy or lease electricity where ever they want – according to the Energy Agency of Serbia. – They are intermediaries between producers and consumers. It is possible that state-owned companies would continue to buy electricity from EPS, but their prices won’t remain the same.

Judging by the experience, companies with the biggest problem could be the RTB “Bor” HIP “Pancevo” and “Zastava” Kragujevac. They have the largest debts for electricity among the 20 high-voltage consumers. Together they owe at least 10 billion dinars for electricity.

– EPS will fight for every buyer in the market – they say in this company. – Prices will be made according to the market rate, but they won’t be the same for all customers. They will depend on consumption, and the power needed by certain consumers.

After the liberalization of the electricity market many companies will find themselves trouble. Among the debtors are companies in the process of restructuring, which have been protected by this status from collecting for years. Restructuring will be over, and the state will reduce their subsidies in the following year. On the other hand, the companies can expect higher costs. The question is whether anyone would compete for those buyers of electricity and whether those without state subsidies would remain in the dark.

Source Serbia Energy Magazine