Serbia: Power exchanges price trends will not trigger EPS price hike

19. February 2016. / News Serbia Energy

At the European exchanges the price of electricity are at their historical minimum. However in the Western Europe the price of KW hour is rising. The traders in the region are announcing cheaper KW for economy. This situation is good for power utility EPS which is not planning any rise in price, neither for households nor for the economy.

From exchange to exchange, the prices of electricity vary, but they are lower than last year. The prices are from 22 to 30 euro per MW hour which is twice as low as last year.

At the same time, for the citizens and the economy in Western Europe, electricity is getting more expensive. Such a situation is due to the reduced economic activity, mild winters and climate change.

However, the main reason is the increase in green kilowatts, which is confirmed by Goran Tanić from the Energy Agency.

“The prices for end consumers have grown because of the participation of renewable energy sources, given that they are financed from the privileged, subsidized tariffs paid by all end consumers,” says Tanić.

The Executive Director of Serbian electricity exchange (SEEPEX) Milos Mladenovic says that the majority customers in Europe are dissatisfied because of the growth of retail prices, given that the market price in the exchanges has never been lower.

Clean energy is essential because it reduces pollution, but the price is paid by consumers and other electricity producers. Some European countries have already announced the reduction of subsidies for energy from renewable sources.

“Finally it is clear to everyone that it is necessary to provide a certain share of these conventional sources, such as coal or nuclear power plants, which must make the system stable. You cannot just base the complete operating system in the wind and the sun,” says Miloš Mladenovic.

In Serbia, the electricity market is liberalized. EPS still supplies 96 percent of the economy, as well as all households where the price is not regulated by the state. Renewable energy has yet to develop.

“We have, so far, no negative consequences on the wholesale prices, given that the price of electricity in Serbia is far, far lower than in Europe, so we do not feel these consequences” says Goran Tanic.

In the region, the percentage of energy obtained from renewable sources is smaller, so the price are not that high. Electricity traders announce more favorable contracts for large consumers in our country.

Srđan Resavac, regional director of the company GEN-I, said that it is the fall in prices on the wholesale markets that is reflected in the retail price.

“So for the next contract period, customers are right to expect the price to be lower by 10 percent than they had in this period,” says Resavac.

With the beginning of the operation of Sepeks we should expect more favorable conditions for trade in electricity. The first transaction will start by the end of February, transmits Serbia-energy.eu

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