Serbia: Households retail electricity market opens, traders awaiting for new increased regulated price

13. January 2015. / News Serbia Energy

The electricity market in Serbia is completely open from January 1st, which means that households will be able to choose the electricity supplier. Households will have the right to supply the free market with electricity, if they assess that it is more payable, but not the obligation, namely they will be able to remain on public supply also after January 1st, said in the Electric Power Industry of Serbia EPS.

Change the supplier will be free, it will last a maximum of 21 days and the entire process will be managed by new supplier and not the electricity buyer. The household which decides to change supplier should regulate debt to EPS supply and then to address to a new supplier and he is obliged to complete the administrative procedure.

Of the 84 licensed suppliers at unregulated prices, 44 are active and only three supply the end customers, and EPS Supply covers 95 percent.

In EPS expects competition in the commercial segment form the market liberalization, but they say that without increase in the electricity price, there is no real liberalization, which is far below the market.

It is not expected that a large number of households decide to use the possibility to change suppliers, because of the low electricity price, other suppliers will be able to offer more favorable prices.

From EPS explain that the price on the bill make energy prices and network tariffs (cost of access to the distribution system) and invite the citizens to use consumption calculator on their website to compare the amount of bill for the same consumption in EPS and potential suppliers.

The electricity market for the economy was opened in Serbia in 2013th and 2014th. In Serbia, the third of the total electricity consumption is the free and the rest on a regulated market.

EPS Supply is occupied with regulated or public supply at prices approved by the Energy Agency. Total electricity consumption of final customers was 28 TWh in Serbia in 2014th, of which 34 percent was sold on the free market and 66 percent on a regulated, where households took 51 percent and smaller customers 15 percent.

Under the new Law on energy, whose provisions are fully compliant with the EU third energy package and on whose proposal Assembly begins debate today, also small customers with consumption of 30,000 kWh per year will be able to achieve the right to public supply with household.

Those who spend more than that, from July 1st 2015th, according to the Draft Law, will have to find a supplier. Small number of customers in EPS, who will have an obligation to enter the market then, is estimated at less than 30,000 and they spend eight percent of total consumption in Serbia, or 2.64 TWh.

In this scenario, from July 1st, 2015th, on the market would be procured 16.5 TWh or 47 percent of total electricity consumption in Serbia. In Serbia, 60 percent of electricity is consumed at low voltage (households) and remained at a high (industry), while in the European Union is vice versa.

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