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Serbia: EPS introduces flexible pricing system for businesses to align with market conditions and boost economic competitiveness

Elektroprivreda Srbije (EPS), Serbia’s state-owned power utility, has introduced a new electricity pricing system for non-regulated consumers, primarily businesses, to enhance flexibility and financial stability. The updated methodologies are designed to better align with current market conditions and address the specific needs of EPS’s commercial clients.

Here’s a summary of the key aspects:

  1. Flexibility and customization:
    • The new system allows businesses to tailor their energy purchases more precisely. For example, companies can choose to buy baseload energy during specific hours (e.g., from 8:00 to 16:00) while sourcing additional energy from the market as needed.
    • Customers can also opt for shorter contract durations, such as six months, to better match seasonal consumption patterns.
  2. Price stability and market reflection:
    • The new pricing methodologies aim to provide stability and predictability while reflecting current market conditions. This is intended to mitigate significant price fluctuations, which can range from EUR 100 per MWh to EUR 500 per MWh.
  3. Implementation and compliance:
    • Minister of Mining and Energy Dubravka Đedović Handanović highlighted that these changes fulfill a key structural benchmark required by the International Monetary Fund (IMF), marking an important step in Serbia’s energy sector reform.
  4. Adopted methodologies:
    • Fixed and levelized prices: For complete electricity supply based on market principles.
    • Predetermined quantity contracts: Methodology for setting prices based on agreed quantities.
    • Dynamic tariffs: Methodology for end prices under dynamic pricing models.
    • Renewable energy prices: Methodology for pricing electricity from renewable sources.
    • Net billing for prosumer deliveries: Methodology for setting prices for electricity supplied by prosumers under net billing agreements.
  5. Impact on the economy:
    • The increased flexibility is expected to enhance the diversity of energy offerings, boost energy efficiency, and improve the competitiveness of Serbian businesses by optimizing electricity costs for final products.

Overall, these changes are designed to create a more responsive and competitive energy market in Serbia, benefiting both the utility and its business customers.

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