Serbia: Power utility unbundling, electricity trading and DSO level relations

29. August 2013. / News Serbia Energy

Within the EPS group, the procurement and sale of the electricity is contracted by the negotiating process on the bilateral market, the balancing market and the organized markets, i.e. so called electricity stock markets. The electricity producers are also participants on the free market, where everyone of them can offer their product for sale.

In the EPS company, it is a practice that, in the name of a producer, the electricity is sold by EPS, i.e. its Department for Electricity Trading, where the unique portfolio is formed. This Department with everyone of five companies for electricity production signs annual contracts in which the full cost price of kWh is taken as a basis and thereunder the selling price and possible profit are calculated. All the production quantities of electricity are covered by those contracts.

EPS, i.e. the Department for Electricity Trading has been signing the annual contracts with all five companies for electricity distribution, which in the part of electricity supply of tariff and the rest of final customers is taken over by the “EPS Supply” from the day of signing the contract with this Department. As we find out , the current option of possible economic relations between EPS, i.e. the Department for Electricity Trading, and company “ EPS Supply” is that the Department for Electricity Trading  will issue two invoices to this company every month: one for the public supplier, with the regulated price of electricity and defined quantities according to the needs based on the contract with the users on complete supply, and the other, from next year for qualified users, where they will be given a divided price to lower and higher tariff, which for the “EPS Supply” will be the  initial price during the negotiating the sale price with the users.

It is useful to mention that the Department for Electricity Trading, in the name of EPS, invoices every month to all the companies of EPS the electricity they spend for production, i.e. performing their activity. The biggest customers in the EPS group are open pit mines and power plants. Regarding the coal and electricity producers, the major changes shouldn’t be expected neither in the manner of contracting mutual obligations, nor regarding the quantities of electricity necessary for the production on the annual level.        

Source; Serbia Energy/EPS

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