Serbia: Power utility company EPS expects dominant position in power market

8. May 2014. / News Serbia Energy

After the third phase of the electricity market liberalization, which could begin in Serbia from 1st July this year, the citizens will probably keep power company EPS as a supplier, because it is not profitable to anyone to offer such cheap electricity, it is the message from conference “Regional electricity market”, under the auspices of the Ministry of Energy, Development and Environmental Protection in partnership with Power company EPS. Bearer of the electricity market liberalization will certainly be Serbia Power Utility Company, within which has been established the company EPS Supply, which has remained the dominant energy supplier after two initial phases and it got the backup supplier role to all who have not already signed supply contracts.

After the opening of the high voltage electricity market last year, from 1st January 2014th began the second liberalization phase of the medium voltage market, while the third and final phase of the free electricity market, after which small customers and households could choose electricity suppliers, could start from July this year, if the new Law on Energy would be adopted in the short term.

About how much already has changed the economy market, namely, market for large and medium customers and what will bring its opening of the citizens of Serbia, as well what problems does carry liberalization in the region, about experiences in Croatia . Bearer of the electricity market liberalization will certainly be Serbia Power Utility Company, within which has been established the company EPS Supply, which has remained the dominant energy supplier after two initial phases and it got the backup supplier role to all who have not already signed supply contracts.

The tariff system is not a social category

Contrary to most of the conference participants, Agency for Energy spokesman stated that the tariff system was not a social category, but it was made on the basis of actual consumption, and she illustrated that with the data that 4 percent of consumers used 25 percent el electricity ten years ago, when this system was introduced.

Hadzibabic still stressed that the formation of the eight regions within Europe energy market coincided with the development plans of the Energy Community. The main objective of the regional market establishment is the creation of a more competitive market environment for all its participants, as well as the further development of each national market.

“The Serbian market consists of three operating units – bilaterally, balance and stock exchange, which is in the process of the constitution” , said Hadzibabic and added that the priority for the market regulator in the coming period would be a legislative framework arranging for repairing defects that had occurred in the system of electricity market establishment.

As one example, Hadzibabic said that medium voltage consumers now often had problems to change the operator, because the former operator would not or did not want to issue a certificate of regulating the previous debts during the statutory period of 21 days.

Talking about the problems in the market functioning, Hadzibabic pointed out lack of commitment knowledge that each customer was individually balance responsible, and that many did not comply with it.

Source; Serbia Energy

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