Serbia, report story: EPS energy company management secured in its leading market position despite liberalization

Published on 13. May 2014., News Serbia Energy

The liberalization of the electricity market in our country has began by opening the market at high voltage, already has brought significant changes. However, a final consumer still is not affected by these changes, but soon they will be quite tangible.

The changes have continued this year, as from January 1st when began the second phase of liberalization in the medium voltage, while the last, third phase of free electricity market could start from July 1st, when the small customers and households would be able to choose their electricity supplier.
The most important factor in the liberalization of the electricity market is the “Electric Power Industry of Serbia”, the company “EPS Supply”, which has been founded within the EPS. In the new market situation the “EPS Supply” and after two initial stages of liberalization of the electricity market remains the dominant supplier and has the role of a reserve supplier for those who didn’t signed supply contracts.

Fully open market operations brings to the EPS a big turn: the company, from the status of a public company, very often criticized in public due to the large number of directors and wastefulness, will turn into a joint stock company, implying business under other regulations, and at the same time, the business with different goals than before.

As recently said Chairman of the Supervisory Board of the EPS Aca Markovic, the role of a public company was the production of goods and services at affordable prices, determined by the owner, the state or local government, while by the transition to a joint stock company, EPS would be able to have a more comfortable role. He pointed out that the state didn’t define the cost of electricity, and that changes were inevitable.

Besides the forthcoming transition to a joint stock company, it is expected to start the reorganization and the introduction of corporate managing, which should provide and accurate determination of responsibility within the company, as well as reduce of operating costs.

So, from July 1st, if would have adopted a new energy law, the liberalization of the market for small customers and households could start. These consumers will have a chance to choose a power supplier, but that is not obligatory if they don’t want to. Households which would want to change a supplier will not have anything to invest, but only to sign a new contract, and the whole job will conduct a supplier. The choice will exist, and the consumers will be in possibility to decide which is the most suitable supplier. Households and consumers in Europe are facing with the liberalization of the electricity market, where this process has just started, but experience shows that a very small number of consumers has chosen a new supplier.

By the end of this year, the power stock exchange should be established as well, which should open the TSO “Elektromreza Srbije“ in cooperation with the French company “Epeks spot.” Starting from this event, it is expected a dynamic power trading, and as far as its price, it still can not be predicted: it will depend on different parameters and conditions that prevail in a particular market, as well as in Serbia.

Source; Serbia Energy