Serbia: Electricity price increase 2016-2017 will increase competition in supply business

, News Serbia Energy

Expected electricity price increase in 2016 and 2017 will place state owned power utility EPS in balanced position with existing regional wholesale and retail electricity suppliers. Agreed reform of power utility and electricity market with key stakeholders like IMF and EBRD may be the sideline guarantee that the overall market restructuring will be completed which will result in increase of competition.

SEEPEX will allow Serbian state power companies to actively compete with foreign regional companies and SEEPEX will further attract bigger European companies commented Filipovic.

First SEEPEX transactions are announced for early 2016 and EPS will be one of the exchange participants. EPS will sell and buy on SEEPEX but also in other 3 regional exchanges, in Croatia, Hungary and Slovenia. EPS may learn from regional positive and bad cases of behavior of state companies which had to compete with new entrance companies, power traders and suppliers. EPS managed to maintain dominant market share position. In the first step EPS lost 6% of the market share but considering the 2016 supply contracts EPS regain its dominance.

EPS will have 100% contracts with high voltage buyers and strategic consumers with 15Gwh+ also have contracts with EPS, explained recently from EPS. However electricity price of EPS is still quite low and that is the reason of EPS dominance.

Current 60% of electricity market is being regulated with price factor, this is quite high market segment being regulated but energy sector reform process may bring the increase of competition like in the neighboring countries, transmits

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