Serbia: Retail electricity market still undeveloped

25. August 2015. / SEE Energy News

In Serbia, there are 88 electricity traders who have official license to operate. Only about a dozen of resellers are active on the market. GazpromNeft NIS increases production of electricity.

Consumers in Serbia can buy electricity from as many as 88 different retailers. The opening of the electricity market enabled companies and citizens, to buy kilowatts as a special service. However, among 88 resellers, the electricity can be bought only from ten to twenty of them because EPS is cheaper than almost all so business is not worth to the dealers. Besides the “Electric Power Industry of Serbia”, yet only NIS produces electricity supplied on the free market.

Most retailers authorized for resale kilowatts still have been waiting to be competitive in the market.

Although the liberalization of electricity trading is ended, it is not essentially revived. Although state owned power utility EPS raised electricity prices for the industry, they are still lower than other resellers can afford. Active traders buy electricity from EPS and resale it abroad or sale it to EPS when imports is necessary.

Among the more serious traders of this year also is NIS, which sales electricity to the companies. With the current produced amount, it could supply about 17,000 households.

After the liberalization of the electricity market in Serbia at the beginning of 2015th, NIS, among others, received a license for electricity supply – say in the largest oil company. – This has created conditions for the expansion of the company’ activities and the production and sale of electricity were among NIS key energy projects. We started with the electricity sale and thus it became, in addition to EPS, the only manufacturer in Serbia who delivers electricity on the free market.

NIS produces electricity, together with heat, in 13 small power plants to oil and gas fields in Serbia. The production of electricity in these power plants has reached an output of 11.6 megawatts and sold companies.

– NIS plans to increase electricity production. For the second quarter of 2016th it is planned to begin construction of the thermal power plant in Pancevo – added to NIS. – Power TE-TO Pancevo will be 140 megawatts, and the value of the investment amounts to 170 MEUR. The plan is to build new small power plants to oil and gas fields “Majdan” and “Sirakovo” within the next year, by whose putting into operation NIS will have a total production of nearly 20 megawatts from cogeneration.

Revoked licenses

Energy Agency temporarily suspended the license for electricity supply to the companies “Vukovic” Ltd. from Novi Sad, which has about 2,000 customers. The permit was revoked because this company charged the cost outside contracts, and the electricity bills were much higher than what consumers really spent.

Permanently Agency revoked a total of 13 licenses so far to the electricity traders, among which are mostly companies from Belgrade. Last license was permanently revoked in 2014th to the Company with limited liability for goods wholesale and retail “IVJEST” Cacak.

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