Serbia: Electricity, waiting for the third liberalization phase

Published on 27. February 2014., News Serbia Energy

How did the customers manage in the second phase of market opening, how many suppliers did involve in the game and what are the biggest problems, were the topics of recent public discussions and media coverage in Serbia. There is a problem of public procurement of electricity at the market, because the public sector did not plan the electricity procurement in 2013say in EPS Supply. Electricity traders are still without comments.

Branko Filipovic, Head of the Department for production, supply and electricity market in the Ministry of Energy, said that the state would overtake the entire burden of the citizens’ social problems, and it would enable the companies to engage in business and make a profit.

– Serbia stepped in the way of an open electricity market despite all the difficulties and circumstances and in due time we will solve all outstanding issues – said Filipovic.

Ljiljana Hadzibabic, a member of the Energy Agency, reminded of the legal framework for the market functioning, and of the fact that customers, regardless of all organized lectures have not been prepared enough. She pointed out that it was necessary to explain to the consumers as simply as possible the relationship with network and suppliers , and that according the EU directives rules on supplier change were adopted, in which changes could last up to 21 days.

– EPS survived two liberalization waves and follows the third wave of market opening t for households. We will see if this will happen on the 1^st July, as provided in the Draft Law on Energy or on 1^st January 2015th – Obradovic said. – We expect a change of EPS statute, the founding documents of dependent companies and continued reorganization, because the market is fierce. Competition attacks the best customers and no one wants companies with problems.

Obradovic said that it was important to explain to customers the difference between the supplier and the distributor, who was responsible for the electricity quality and who for the price.

According to Zeljko Markovic, Acting Director of Company” EPS Supply”, this company has signed contracts with customers who make more than 70 percent of the market , and with spare supply it will be about 90 percent .

– There is a problem of public procurement of electricity at the market, because the public sector did not planthe electricity procurement in 2013th – said Markovic. – The tenders for this year are invited just now; we respond to all tenders and conclude contracts. We have already concluded 50 agreements relating to public procurement, and another 150 are in progress.

Tina Jakasa, director of “HEP Supply”, spoke about the experiences in the Croatian market, who pointed out that in Croatia , where the market opening has been going for 10 years, all customers could choose their suppliers in the last five years. However, only after 2010^th, the alternative suppliers entered the market, and 19 of them have license today.

Source; Serbia Energy