Serbia: EPS Supply nominated as reserve supplier on electricity market

Published on 20. January 2014., News Serbia Energy

By Decision of the Government of the Republic of Serbia of 25 December 2013, the company “EPS Supply,” part of the “Electric Power Industry of Serbia”, was selected for the reserve supplier of electricity on the open market from 1 January 2014. The Government of Serbia has made this decision based on the results of the public tender for the reserve electricity supplier and tender was conducted by the Department of Energy, Development and Environment Protection.

In accordance with the Energy Law, the right to spare supply in the open market has electricity customer who has not chosen a supplier by 31 December 2013, from which he will continue to purchase electricity at market conditions. All they are required to apply for a contract for spare supply at “EPS Supply”, as the electricity supply would not be suspended. The application, guidelines and model contracts on spare supply can be downloaded from the website www.eps-snabdevanje.rs.

From 1 January 2014, the obligation of entering the open market had all customers at medium voltage, as well as customers of the voltage greater than 1 kV, buyers who have more than 50 employees, as well as those with annual revenues in excess of 10 M EUR in dinar equivalent.

According to the Energy Law, spare supply can last up to 60 days. If within 60 days the buyer does not enter into a contract of sale with the supplier, the system operator is obliged to suspend him delivery of electricity.

Price of the spare supply is 59.90 euros in dinar equivalent per megawatt-hour, and it is higher than the price at which “EPS Supply” provides electricity to customers. In “EPS Supply” they say that it is in the interest of customers to choose their electricity supplier as soon as possible, given the price and terms of the spare supply.

Price of the spare supply is a single amount that includes the cost of electricity and the cost of balancing the system. Apart from the price of the spare supply under the contract of spare supply, the end customer is required to pay the cost of access to the system, the cost of incentive compensation of privileged power producers, and value-added tax (VAT).

Source; Serbia Energy