Serbia: EPS Supply company prepares for 2014 power market full liberalization

23. July 2013. / News Serbia Energy

Dejan Vasic, CEO of newly founded Supply company, indicates that “EPS Supply”establishment and activities separation is obligation that arises from the existing Energy Law, and it is also regulated by respect of Contract of the South East Europe Energy community and the steps to join to the European Union.

“EPS Supply” establishment is defined by decision of the Serbian government to adopt the fundamentals for EPS reorganization, adopted in November last year. Starting with first phase of power market liberalization, big consumers change of supplier phase, EPS become one of the market actors. Extra work, but also a challenge, according to him, will begin on 1. January in 2014. when liberalization starts for customers on medium voltage, and then 1. January 2015.  when everyone, including households and small customers, will have the option of choosing suppliers.

EPS must be prepared for future competition, as from next year, the right to choose the supplier will receive about 4,000 customers at high and medium voltage. That’s why we have to prepare organizationally in order that present cooperation become market rule with positive results for EPS. For that work we need professional people and market-organized company. And, we should not ignore the fact that already 60 electricity traders are registered in the AERS. That’s why it is important to do business separate   the more better and more clearly in order to retain  the more bigger part in  the market, and thus ensure the  more successful economic business of the company.

What has been done in order that “EPS Supply” really started to work?

In early June, the Government of Serbia adopted a resolution on the founding of the public electricity supplier and that job was entrusted to EC “EPS Supply.” The Serbian government approved the agreement on entrusting of the activity of public interest to “EPS Supply”, which was signed then by Zorana Mihajlovic, Minister of Energy, Development and the Environmental Protection. Energy Agency awarded to “EPS Supply” license for the public electricity supply 1. July.

What is the status of EPS Supply and DSO companies tasks distribution?

From 1.July began a gradual tasks redistribution within the process of reorganization, and one of the aims is the complete separation of supply activities from the electrical distribution. Making systematization in depth in EC is in progress and it is expected to be completed by the end of the year. Through systematization we  will recognize jobs in each EC for electricity distribution that are committed for EC “EPS Supply.” The next step is the moving process of workers from one EC to another.

Contract signing between the “EPS Supply” and DSO companies, what has been done so far?

It is so-called SLA (Service Level Agreement), that is, the service-level agreement that EC “EPS Supply” signs with EPS Supply for distribution and the third signatory of such contract is EPS holding, which will perform a corporate function in their own dependent EC. With the agreement  are defined all mutual relations between suppliers and retailers, and also the jobs that distributions have done so far and will continue to work them, but in the name and for the account of the supplier. It is a framework agreement with the general provisions on mutual relations and it would complement during the separation process. Additional norms, in order to regulate mutual relations on the market in accordance with low, should be done. For now, the plan is to sign these contracts by 31. October until when applies the decision of EPS Board of temporary financing EC”EPS Supply.”

EC “EPS Supply” also will do trading on the free market. How will it work?

Foundations which are set now also will be valid for trading in the free market, which we expect soon. We have the license to supply customers in the free market, and already from January, we can trade with customers at medium voltage. This is the first market battle that waits us.

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