Serbia: The progress of Serbia in the Annual Report of Energy Community (EC)

, News Serbia Energy

The Secretariat of gave a special praise to Serbia’s progress in implementation of the Third energy package and opening of the electricity market. In the Report the key accent is placed on the role of national energy regulators. One of key elements of EU’s Third energy package, which will enter into force on 1st January 2015, is strong and independent regulators. Energy Agency of the Republic of Serbia (AERS) is the only regulatory body with jurisdiction in electricity, gas and petroleum sectors in Serbia. Its mission is, by performing its activities stipulated by the Law, to contribute to establishment of stable regulatory framework for development of efficient and sustainable energy sector that will become secure support in Serbia’s economic development.

During the last years, Serbia demonstrated its commitment in reformation of energy sector, especially in the field of electricity. Electricity market was opened as scheduled, while complete opening is planned for 1st January 2015. Electricity Transmission System Operator, Public Enterprise Elektromreža Srbije (PE EMS) is supposed to open the electricity stock exchange soon. As national transmission system operator, PE EMS is responsible for transmission and management of the transmission system, organizing of electricity market and for assignment of rights for using available transmission capacity on interconnection links of the Republic of Serbia with adjacent states. Serbia has received a negative mark for failure in reforming its gas sector, specifically because of missing to separate companies „Srbijagas“ and  „Jurosgas“.

In 2013 in Serbia 37.537 gigga-watts of electricity was generated.

When we talk about gas industry, as for Serbia, the key priorities in the upcoming period should be spreading of the jurisdiction of the Energy Agency of the Republic of Serbia, until completion of regulatory authorization and goals envisaged by the Third energy package, increase in cash aiming to solve additional obligations and prompt budged approval by assembly for that purposes, to guarantee financial independence.
When we talk about petroleum, it is concluded that the new Law on Commodity Reserves introduces solid reserve for establishment of petroleum reserves for emergency, but also sublegal deeds should be passed until the end of year, including the action plan and roadmap. Existing refinery and storage capacity should be repaired as well.

As is well known, Serbian electric power sector is characterized by the existence of a vertically integrated company – Electric Power Industry of Serbia (EPS). EPS performs generation, distribution and supply of electricity. EPS and EMS (transmission system operator) are 100% public companies.

By the end of year electricity stock exchange should be opened in Serbia. Organized SPOT market in Serbia was a subject of recently signed agreement on cooperation between PE Elektromreže Srbije and the company EPEX SPOT. The agreement concretizes the long term cooperation of two companies with a goal to establish the company SEEPEX, which will have ownership ratio of 75:25%, EMS and EPEX SPOT respectively. The partnership should contribute to establishment of organized electricity market in Serbia, and its subsequent integration into unique European market. SEEPEX is also a strong signal for establishment of regional market as the first stage of mentioned integration.
SPOT market implies also providing of the platform for regional day in advance market (Regional DAM).

As of 1st January 2015 what awaits Serbia and other countries members of the EC is the third phase in which every household in Serbia will have the option to choose its electricity supplier. The Law on Energy from 2011 represents the legal framework for Serbian electric power sector. The new Law on Energy should be passed until the end of year.