Serbia: Energy Community perspective on Serbia energy sector reform

18. November 2014. / News Serbia Energy

At the International Conference “Power Plants 2014”, Simon Uzunov, in front of the Energy Community Secretariat, held a presentation about “Politics and Markets in the Energy Community”.

The mission of the Energy Community is an extension of the internal energy market outside the European Union, providing a stable investment environment and a secure energy supply, approximation of the agreement contractors to the EU and investment attraction in capacities for the production and transmission of electricity. In addition, the objectives are the creation of an integrated energy market, improvements in the environmental sector and raising the competitiveness level at the regional level.

In a report on the commitments implementation Serbia points out that the authorization and tendering procedures require greater transparency, all relevant information must be made publicly available. In terms of operators separation, further steps are needed in order to complete the final separation, including the adoption of compliance programs. When it comes to the provision of network access by third parties, the report notes that EMS does not participate in a coordinated mechanism for the capacity allocation.

In the area of market opening and price regulation was agreed that the concept of public supplier to households and small consumers is not in accordance with the provision of universal service defined by the acquis. Consumer protection rules have not yet been implemented, especially with regard to the efficient resolution of complaints and disputes.

It was pointed out in the report that Serbia has made significant progress in the implementation of primary and secondary legislation. The legal framework is largely in line with the second package. The opening of the retail market is in accordance with a staged approach and deadlines set by the Energy Law.

The agreement on the principles of cooperation for the electricity market establishment (SEEPEX) was signed between EMS and company EPEX SPOT, which is the first concrete step in organizing market the day-ahead. The inert TSO agreement between EMS and the Albanian operator KOSTT is highlighted as a positive shift, which was signed on September15th.

From the perspective of the Energy Community, Serbia’s priorities are the implementation of the Third Energy Package and the adoption of the Law on Energy, unbundling of distribution system operators, the steps towards the integration of regional markets, long-term participation in the regional capacity allocation and starting of SEEPEX.

Energy Agency of the Republic of Serbia (AERS) was rated as one of the most active in the region, but its authorization shall be extended according to the Third energy package. The Assembly should quickly adopt an annual budget in order to guarantee financial independence, and require additional human resources to bring out additional responsibilities of the Agency provided by the Third package.

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