Serbia: Third energy package harmonization

With the new Energy Law, Serbia has fully included all measures from the Third energy package of the European Union in the field of gas and electricity sector and the recently adopted law should facilitate Serbia to reach the highest level so far in the process of accession to the EU, regarding the power engineering field .

Ministry of Task Force has worked on drafting this Law, which, apart from the representatives of Ministry of Mining and Energy, included the representatives of the Energy Agency of the Republic of Serbia, companies “Electric Power Industry of Serbia”, “Elektromreža”, “Serbiagas” and “Transoil”, but they also collaborated with other Ministries, agencies and organizations.

In the field of energy, Serbia can reach the greatest progress so far in the process of joining the European Union. The adoption of the new Energy Law transposes the provisions from the Third energy package, and the Secretariat of the Energy Community of the Southeastern Europe has, by its act as of 6th November 2014, given the positive opinion on the solutions in Energy Law. The main elements of the Third package are more stringent conditions for the separation of the operators of the electricity transmission system, that is the natural gas transportation system, the significant strengthening of the authority and functional independence of the regulatory body, the improvement of the coordination of the operator system with the operators in the region, especially in the field of investment planning. The improvement of the energy market functioning is particularly performed as well as greater protection of the electricity and natural gas consumers. The reform of the energy sector has a direct and significant influence on the overall economic development, situation and investment opportunities. The new regulation also affects the quality increase and creation of a market economy capable to engage into the unique market of the European Union.

The new Energy Law needs to be adopted in order to solve the issue of commitment and EU regulations comprehensively and efficiently. It is highly important that we solve the issues that have been encountered in practice. The new Law will have a positive effect on increasing the number of energy entities on the energy and gas market, and this will lead to having greater competition and more successful functioning of the market which has been fully opened since 1st January this year.

Besides the coordination of the domestic regulatory frame with the Third energy package, which is related to electricity, natural gas and renewable energy sources, as well as with the ratified international agreements signed by the Republic of Serbia, the new Energy Law stipulates also the compliance for providing the secure supply of the Serbian market with the energy and fuels. The new law governs the efficient functioning of the electricity and natural gas market, as well as the establishment and functioning of the organized electricity market. The aim of the new Energy Law is also the participation of the foreign legal entities in the bilateral, balanced and organized electricity market. Buyers are not forgotten either, since the protection of all categories of buyers has been defined, and especially energy-vulnerable buyers. Also, the aim of the new Energy Law is reaching the binding national objective for electricity production from the renewable energy source and consumption of biofuels in transport, and especially the suppression of illicit market of oil and oil products. One of the most important goals is to strengthen the independence of the Energy Agency of the Republic of Serbia, as well as increasing the level of transparency, protection of competition and non-discriminatory behavior of all market participants. Energy Law has a direct and significant influence on the overall economic development, the state and the possibility of investment activity, quality increase and the creation of the market economy capable to engage in the unique market of the European Union and other international market trends.

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