Serbia: Expensive electricity for thousand companies on backup supply

Published on 1. September 2014., News Serbia Energy

When, at the beginning of the year, after the electricity market at high voltage also was opened market at the medium and partly at low voltage, 1,217 companies moved to the backup supply, both those in the bankruptcy and restructuring process and those who did not manage with the implementation of public procurement for selection of the winning bidder. With access to the market the price of kilowatt-hour for them increased for about 37, 5 percent and for those who have signed a contract with a supplier for about 18 percent.

At this moment, according to information received from “EPS Supply”, another thousand customers, mainly companies in restructuring are on the backup supply. By the decision of the Government, these, as well as companies in bankruptcy at the backup supply, for which is responsible “EPS Supply” may remain until the end of the year.

– After the first and second liberalization phase, “EPS Supply” has retained 96 percent of buyers in the open market. Many successful companies have recognized the “Electric Power Industry of Serbia”, or “EPS Supply”, as a reliable electricity supplier and partner in business.

As a reminder, besides “EPS Supply”, also GEN-I, “Vukovic 1967”, “Rudnap” and “Nоva Komoditis” supply customers in Serbia with electricity, to which moved 138 customers, and there are those who are currently in the process of supplier replacing. The data about which businesses have chosen which supplier and how much electricity at this moment each of them provides to customers in Serbia – there is not. This, as expected, it should be known at the end of the year, when we draw a line under the first two liberalization phases and when it opens to all customers in the country.

However, when it comes to customers at high voltage all is clear. Of those 27, according to “Elektromreza Srbije”, three have changed suppliers – “Messer”, “Belgrade water works and sewerage” and “TITAN Cementara Kosjeric”, which as the ultimate purchaser, acquired the status of balance responsible party and independently purchases electricity for their own needs.

– Currently, besides “Messer”, we supply another big buyer – Belgrade water factory in Makis and four medium-size businesses – cable factory “Milic Paracin”, Student Center Novi Sad, Water works in Bela Crkva and Novi Sad Gerontology Center. In the process of changing supplier, after the procurement was done, there is also the Institute of Field and Vegetable Crops in Novi Sad. Excluding “EPS Supply” of course, the supply company GEN-I group is the largest independent electricity supplier for consumers in Serbia.At this moment GEN-I delivers 22 million kilowatt-hours of electricity per month to the customers in Serbia.

Not wanting to disclose details of the portfolio, weget the answer from “Nоva Komoditis” that their company supply industrial consumers in Serbia and they have plans to increase the number of customers next year.

In the companies “Rudnap” and “Vukovic 1967” we could not get answers to questions about the electricity and next year’s planned activities in the Serbian electricity market.

Who has right on the backup supply?

On the backup supply, during the market opening, according to the Energy Law, can count only those customers who are not eligible for public supply, those who have not chosen a supplier, or upon termination of the contract with the previous one did not find a new, except in the case that the contract stopped to be valid for non-payment of electricity bills. The buyers have right on backup supply also ha in the case of bankruptcy or liquidation of the supplier as well as the termination of, or revocation of a license.