Serbia Energy company EPS agreed conditions for electricity supply to big industrial consumers, TSO also increases the fees

, News Serbia Energy

Electricity trading  Director of Elektroprivreda Srbije (EPS) Dragan Vlaisavljevic declared that ten big companies accepted EPS’s offer about electricity supply since 1 January 2013.

EPS has already made two contracts, with Public Enterprise Beogradska Elektrana and thermal power plant Kovin, said Vlaisavljevic to press release on Monday. Vlaisavljevic announced signing of contract with Naftna Industrija Srbije for electricity supply of modernized Refinery Pancevo. Fiat automobile Serbia is also expected to make contract.

EPS will sign contracts for electricity supply with couple of thermal and hydro power plants consisted in the company as large consumers TENT, Kostolac and other, because of trade liberalization, added Vlaisavljevic.

Vlaisavljevic announced that EPS is ready to ensure required amounts of electricity for Zelezara Smederevo if the steel company starts to work.

Vlaisavljevic précised that EPS offered supply to large industrial consumers, which will have to buy electricity on free market since New Year, price which is without network fees almost equal to average price that Serbian households use for supply.

Although real price should be 60% higher than current industry prices, offered price is about 46% higher than current regulated price, added EPS Director.

Electricity price for industry consumers has been lower than average price for Serbian citizens, so far. It amounts about 5, 5 Euro-cent per kilowatt-hour (kWh).

Vlaisavljevic specified that electricity price he offered to EPS is competitive, and some users were offered 3% and other 60% electricity price increase, depending on amount of electricity and type of changes they consume electricity with. Vlaisavljevic messaged that EPS guarantees safe and confident electricity supply and that all contracts made with EPS are year contracts with financial guarantee, with possibility of consuming bigger amounts than planned.

EPS will work during upcoming holidays so all buyers, if they want to, can make contract with the company, announced Vlaisavljevic and specified that EPS sells and charges electricity like merchandise. Electricity transmission is being paid to Elektromreza Srbije (EMS) the price Energy Agency determined.

EMS has asked Energy Agency for approval for 37% electricity price increase, where transmission will participate with 0, 46 instead of 0, 34 kWh.  When he was commenting certain companies’ demands for postponing or gradual increase, Vlaisavljevic said that EPS only respects Energy Law, according to which electricity trade liberalizes only for 9, 5% consumers in Serbia.

“That would mean that we should subsidize them, what is against EU directions and Energy Law of Serbia. EPS doesn’t have business capacity to subsidize anyone and to try being competitive market which fights for its buyers with competitive prices”, said Vlaisavljevic and added that industrial consumers cannot expect to pay electricity price like households and senior citizens in Serbia.

EPS offered to big industrial consumers energy cost lower 15 to 20% than competitive companies in region, said Vlaisavljevic and pointed they can sell electricity overage at more expensive prices, so big industrial companies will be forced to buy electricity from electricity traders and the price will be higher than EPS’s price.

High voltage electricity consumers had a chance to prepare themselves for future electricity market opening on 2011 when public discussion about energy law began, reminded EPS Director.

Source Serbia Energy Magazine