Serbia: Wholesale, bilateral electricity market trends 2014 stats, activity of traders

1. September 2015. / News Serbia Energy

Both electricity purchase and sales are organised on the bilateral market directly between market players, while on the wholesale bilateral market, the players traded in electricity at open market prices, while on the retail bilateral market, supply was organised at open market prices and regulated prices due to the fact that in 2014, all customers except for households and small customers were obliged to purchase electricity in the open market. Households and small customers were supplied at regulated prices by public supplier.

Wholesale electricity market in 2014 was based on trade between suppliers since there are almost no independent electricity producers at all. The activities of the suppliers in the open market are mostly concerned with the field of cross-border exchange, mostly for transit through Serbia which is dominant due to the central geographic position of the power system in the region and the 8 existing borders, as well as for the purpose of import meant to meet the demand of final customers and export. In 2014, electricity import was considerably higher than the export due to unavailability of a segment of production capacities, thermal power plants for which coal from the open pits was unavailable since the pits were flooded since May.

In 2014, there were 47 electricity market players entitled to nominate operation plan on the basis of a relevant contract signed with PE EMS. 40 of them actively participated in the market of the Republic of Serbia. 39 market players dealt in cross-border exchange, 7 of them in electricity supply of final customers in the open market, while there was only one electricity customer in the open market.

In 2014, electricity transit was increased (commercial data) in comparison to 2013. The quantities of electricity purchased by PE EPS from other suppliers in the open market were greatly increased due to the above mentioned reduced production in thermal power plants. In the beginning of the year, since February till May 2014, electricity export dominated thanks to favourable weather conditions and increased PE EPS production while since May 2014, electricity export began to dominate.

PE EPS was the dominant supplier of customers in the open market.

The highest energy quantities were traded by the suppliers listed below. The data are given per most intensive activities:

– Transit: GEN-I LLC Belgrade, EFT TRADE LLC Belgrade, Danske commodities Serbia LLC Belgrade, EZPADA LLC Belgrade and MVM PARTNER SERBIA LLC, Belgrade;

– Export: ALPIQ ENERGIJA RS, LLC, Belgrade, EFT TRADE LLC Belgrade, PLC INTERENERGO LLC, Belgrade, GEN-I LLC Belgrade and MVM PARTNER SERBIA LLC, Belgrade;

– Purchase from PE EPS: EFT TRADE LLC Belgrade, ALPIQ ENERGIJA RS, LLC, Belgrade, GEN-I LLC Belgrade, PLC INTERENERGO LLC, Belgrade and Danske commodities Serbia LLC, Belgrade;

– Purchase by PE EPS: PETROL LLC, Belgrade, GEN-I LLC Belgrade, EFT TRADE LLC Belgrade, ALPIQ ENERGIJA RS, LLC, Belgrade and MVM PARTNER SERBIA LLC, Belgrade;

– Purchase/trade between suppliers: ALPIQ ENERGIJA RS, LLC, Belgrade, PLC INTERENERGO LLC Belgrade, PETROL LLC, Belgrade, EFT TRADE LLC Belgrade and ENERGIA NATURALIS LLC, Belgrade.

Out of 39 active suppliers, 6 of them are among three dominant suppliers in each of activities. Market concentration level was reduced in comparison to 2013 in all suppliers’ activities and this was also the case of PE EPS activities. Market concentration for the energy sold to PE EPS was reduced by even 7 times in comparison to 2013 HHI was reduced by 86.3% in 2014) which is a consequence of the fact that 2014 was untypical year for PE EPS in energy terms since PE EPS purchased great quantities of electricity from other suppliers in 2014 due to unavailability of some of production capacities owned by PE EPS and, thereby, made a huge impact to other suppliers’ activities. , transmits Serbia-energy.eu

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