Serbia:Electricity market breaks price of kWh – SEEPEX day ahead market begins to operate in 2014, News Serbia Energy
By establishing an effective organized electricity market, Serbia will formally establish itself as a focal point for electricity trade in the region. As announced by the Ministry of Energy, the Energy Agency, as well as the public company “Elektromreza Srbije” (EMS), which is the project leader, the electricity day ahead stock market should be established next year.
Milos Mladenovic, corporate director for international and regulatory relations in PC ” Elektromreza Srbije,” introduced the concept of the future electricity market in Serbia, under the name of SEEPEX.
– EMS will take all necessary measures in cooperation with potential partners for the establishment of organized electricity market, in order for everything to start to work at full capacity by the end of the third quarter in 2014. The concept of organized electricity market primarily relates to the establishment of the “day-ahead market,” which would initially refer only to the balancing area of Serbia, which could later be joined also by potential participants from neighboring countries, through implicit auctions, ie. through linking trade with transmission cross-border capacity, and the potential involvement of reputable strategic partners from the EU and the region in the ownership structure, – says Mladenovic.
Our source points out that the proposed concept of establishing a stock market in Serbia is fully in line with the adopted model of European market, as well as with Action Plan for the establishment of a regional electricity market in South East Europe, with the application of which is already underway within the institutions of the Energy Community of South East Europe and the ENTSO-E regional group.
– EMS is through its active performance and leading role of its representatives in the relevant regional and ENTSO-E bodies also managed to formally impose SEEPEX as a regional pilot project, which was officially recognized by the conclusions of the 18th Athens Forum, held on 15th and 16th June 2013 – notes Mladenovic.
The importance of SEEPEX
Successful implementation of the organized electricity market in the region would bring numerous benefits for both suppliers and customers.
– The greatest benefit to the wider community is, of course, the establishment of reliable and referent market price, which will represent a clear economic signal, and thus the main precondition for the establishment of stimulating investment framework, and not only in energy but also in other areas of the economy.
When it comes to market participants, ie. suppliers, and EPS as a potential “market maker” who will actively participate in the organized market, SEEPEX will, according to Mladenovic, provide the service of “efficient and customer-oriented business infrastructure, provide easy access to markets in the region, pooling liquidity, and therefore and greater financial security and risk reduction, a significantly reduced costs (less administration, modern technologies, reducing the risk of contracting), and a wide range of portfolio of high quality services in the electricity market.”
– This will indirectly benefit the customers too, by reducing the costs of supply, and therefore the lower selling prices of electricity – says our source.
Source; Serbia Energy