Serbia exclusive: Company “EPS Supply” successfully in the second phase of the market opening, Medium voltage consumers also went to EPS

18. February 2014. / News Serbia Energy

The greatest number of customers, about 95 percent of the market, remained faithful to EPS and contracts were signed with “EPS Supply”. – The budget users mostly at reserve supply

After last year’s success in the electricity market opening for customers at high voltage when the “Serbia Power Utility Company” retained 97 percent of the market and generated additional revenue of 21.5 MEUR, also the second liberalization phase runs successfully. From 1st January this year, all customers at medium voltage, as well as customers at the voltage greater than 1 kV, buyers who have more than 50 employees, as well as those who have an annual income of more than 10 MEUR in dinar counter value, lost the right to public supply, and thus acquired an obligation to come out to the open electricity market.

Association of Energy in CCIS, Energy Agency and licensed suppliers have worked for months to get as many customers familiar with the rules for entering the market . The greatest number of customers, about 95 percent of the market, remained faithful to EPS and contracts were signed with “EPS Supply”. By 24th January “EPS Supply” had signed 2.000 contracts, and those days it has been waiting on an answer of about 300 customers. The biggest buyers such as Petroleum Industry of Serbia recognized the strength and gave their confidence to EPS. However, a number of customers, mainly budget users was not ready for the second liberalization phase and failed years to find a new supplier by 31st December 2013th. And according the Energy Law there is a solution for them – a reserve supply.

By decision of the Government of the Republic of Serbia from 25th December 2013th, Company “EPS Supply” was selected as reserve electricity supplier at the open market from 1st January  2014th. The Government of Serbia made this decision based on the results of the public tender for the reserve electricity supplier and tender was conducted by the Ministry of Energy, Development and the Environment Protection.

– In accordance with the Energy Law, the right to a reserve supply at the open market has an electricity buyer who did not choose by 31st December 2013th a supplier from whom he will buy electricity at market prices – say in “EPS Supply”. – They are all required to apply request for a contract signing on reserve supply to “EPS Supply”, in order that electricity supply would not be suspended to them. The application, guidelines and model contracts on reserve supply can be downloaded from the website www.eps-snabdevanje.rs.

However, according to the Energy Law, the reserve 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 electricity delivery to him. In the “EPS Supply” point out that the price at the reserve supply of 59.90 euros in dinar counters value per megawatt-hour is higher than the price of commercial electricity supply which “EPS Supply” offers to customers.

In this Company say that most customers ask questions about terminology, they often do not know what means DSO (distribution system operator), does not know whether they are eligible for reserve supply or the free market, and which criteria determine it. Precisely because of this some of them did not even sign contracts on commercial supply by 31st December.

– By 24th January “EPS Supply “, as a reserve supplier, received 84 requests for backup supply. They are currently in the processing operation, and 14 of these were finalized – contracts were signed – explained to us in “EPS Supply “. – Budget users are the largest electricity category at reserve supply.

What does make the price of reserve supply?

Price of reserve supply is a unique amount that includes the electricity cost and the cost of the system balancing. Aside from the price of reserve supply, according the contract of reserve supply, the end customer is required to pay the access cost to the system, compensation for incentive of privileged electricity producers and value-added tax (VAT).

Source; Serbia Energy

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