Electricity

State of compliance

The state-owned transmission system operator MEPSO and the distribution system operator Elektrodistribucija are unbundled in line with the acquis. Both transmission and distribution system operators prepare and publish a compliance programme and an annual compliance report. Pursuant to the Energy Law, Connection Network Codes should be directly applicable. However, the implementing rules of network operators have not been amended accordingly.

The wholesale electricity market is open. From September 2020, a subsidiary of MEPSO, the National Electricity Market Operator (MEMO), acts as the nominated operator of the organised electricity market. MEMO conducted a tender for a service provider of the trading platform for the day-ahead market and market coupling, but no contract was awarded. Additional efforts are needed to finally set up the day-ahead market and couple with Bulgaria after years of delay. Given the state of play, it is expected that the functioning of the day-ahead market and its coupling with Bulgarian IBEX will be further delayed.

MEPSO procures both the balancing reserve and balancing energy in a competitive procedure, albeit only with two registered balancing service providers.

The Transparency Regulation is partially implemented, but the publication of missing data on the ENTSO-E Transparency Platform requires a new market management system, which is currently being procured by MEPSO. An amendment to the Energy Law, required to transpose the REMIT Regulation, has not been adopted yet. ERC performs only general market monitoring functions.

Retail prices are deregulated, except for the universal service supplier, EVN Home. The latter was appointed to provide the universal service for the period of five years until 2024. The price for the supplier of last resort is based on the reference market price, currently the HUPX’s day-ahead price. Despite that the Law allows for the recognition of supply licenses issued abroad on the basis of the reciprocity principle, foreign suppliers have not emerged in the market so far.

The Energy Regulatory Commission (ERC) set up a web platform with a comparison tool to facilitate switching for households and small customers.

Protection of vulnerable customers is provided by the Government’s programme for protection of vulnerable customers, adopted in January 2021. The programme defines the users, the conditions to classify categories of vulnerable customers, support measures and the funding for support measures.

MEPSO allocates interconnection capacities with Greece and Kosovo* through the SEE CAO. Interconnection capacities with Bulgaria and Serbia are allocated bilaterally. Signature of the agreement on grid control cooperation within the control block of transmission system operators of Montenegro, North Macedonia and Serbia awaits approval of MEPSO.