Serbia: Evaluation of electricity market liberalization by Ministry of Energy

6. May 2014. / News Serbia Energy

For Ministry of Energy the market opening was one of the key issues in the past and this year, and according to Dejan Trifunovic, Deputy Minister of Energy, Development and the Environment Protection can be said that “the system works, after the first turbulences in the opening of the high voltage market “.

Regarding regulation, the Energy development Strategy has been adopted in January this year and soon will be adopted the new Energy law, which will include market in which will be implemented the Third Energy Package. This law could allow households to choose the electricity seller from July this year, although they still will have right on public supply from EPS.

“We have expressed openness to the private sector in the strategy. The state can no longer borrow, but it certainly does not mean that we will not build new capacity “, said Trifunovic.

The problem with the second phase of the electricity market liberalization was created because the public sector did not issue a tender last year for the purchase of electricity which would spend this year. Particularly, the situation of around 800 companies in restructuring and bankruptcy is specific.

“A large number of tenders have been announced last month. By 30th June, we will see what to do with them. For now they remain on the backup supply, which is very expensive “, says Trifunovic, adding that the market price was from 40 to 45 EUR per megawatt hour, which is at the price level of the regional markets. The price for those who are supplied with electricity on the regime of backup supply is 59.9 EUR per megawatt hour, which applies to more than 1,000 businesses that did not provide supplier on time.

“At this point about 40 per cent of the electricity market was opened in Serbia. These consumers are supplied at market prices. Prices are lower about 30 percent on the regime of public supply and it will be resolved in the next three years “, said Deputy Minister, noting that the European Commission adopted a projection of increase in electricity prices in Europe in March, and increase should be 25 percent by 2025th.

Trifunovic has announced a strong turnaround in the relation between the Government and public enterprises, and EPS and EMS will become public companies. He also announced the opening of EPS office in Slovenia, in order to obtain a license for the EU electricity supplier, by which would avoid buying over a broker.

Source; Serbia Energy

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