Serbians pay green kwh but we don’t have wind parks, solar plants and biomass?

25. March 2013. / News Serbia Energy

State pursues social policy within low electricity price and makes citizens pay to investors who invest in renewable energy sources.
Electricity price won’t increase on 1 April, but bills from March will be increased for expenses of subsidized electricity from renewable energy sources which are around 4,4 para per KWH. This will increase monthly electricity bill of 400 KWH for 16 dinars.

10 million EUR is estimated to be collected on this basis by the end of a year. This money is intended for investors who invest in “green energy” and fee will be changed every year.

What do citizens exactly pay through bills within the subsidized renewable sources energy item?

This question is very interesting because Serbia has only 37 producers who get KWHs from small HPPs and whose production is symbolic with the reference to total offer. Serbia doesn’t have any bigger wind park, solar plants and biomass. It seems that we pay something we don’t have or consume.

Besides, 3,5 million households which have electric counters pay 31,5 dinars fixed fee per KWH each month, as well as 119,07 dinars fee for measuring point. What do citizens get from it? Nothing, this is clear profit for EPS.

On the other side, who asked citizens if they want to pay for these subsidized KWHs to investors that make a calculation to produce it and to earn that way? Secondly, is it normal to introduce green energy fees while EPS is being used for pursuing social policy through cheap electricity?

When she was asked how green energy payment is regulated in other countries, Maja Turkovic from Serbian Association for Wind Energy says that domestic law is use of experiences from surrounding countries.

-The practice of the biggest number of countries is that ultimate buyers i.e. citizens should pay green KWHs. EPS has paid for 50 MW of green energy which Serbia gets at the moment because it was more payable than printing the payment slips- Turkovic said.

All consumers are determined to pay for green energy because it is planned to increase use of this energy source. It is good that this expense will be visible on every bill because citizens should know what they pay. Only unclear thing is why 4,4 is linear no matter on consumption. It would be logical that those who use more pay more and reverse.

-If the whole thing wasn’t done within electricity bills, fee will be paid to producers from the budget what would be a huge problem for citizens because nobody will know how much is provided for this intention- Turkovic said.

She said that, so called, mix exist in developed countries where green energy became a standard so it is well known how much electricity is produced from water, wind, sun…and ultimate buyers pay for all of that. Turkovic explains that electricity market monopoly is being terminated this way.

-EPS loses monopoly this way: We paid for every constructed energy object and nobody asked us if we want that or not. Besides, Serbia must technologically modernize all thermal blocks where, so called, dirty hours are provided from until 2017, according to directive. Around 66% electricity is provided from coal and it pollutes environment. KWH from coal will cost 7,5 cent after finishing this business i.e. 3 times more expensive than today- she said.

EPS confirms that they have paid for green KWHs for 50 MW of electricity produced from small HPPs so far and that this expense is being transferred to citizens now.

Goran Papovic, President of National Organization of Consumers in Serbia, says that Serbia should have green KWHs but it can’t produce the cheapest electricity at the same time and to ask from citizens to pay for green energy in order to respect EU directive.
The proposal of consumers’ protector was that electricity price should increase for 2% where one part would be separated for socially endangered and another part for renewable sources and efficiency and we must know how much money we will place and where.
Citizens must know what they pay and in which amount. There are some uncertainties on EPS’s bills already- he concludes.

Source Serbia Energy/Agencies/ Politika

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