EPS Starts Sending New Energy Prices to Businesses

Companies and citizens are paying for the collapse of the Electrodistribution, while certain parties earn good money on the stock market.   

The Electrodistribution of Serbia is in the middle of sending offers to businesses for closing new contracts, with prices for the first time as disparate as those on the stock market—with the exception that EPS is still pricier than the former. It’s transparent, thus, who is making money off of the price regulations, but the question remains why should someone’s bad business decisions be shouldered by the local economy and the citizens as well as who is buying cheaper stock market energy when EPS supplies nearly all domestic economy with electricity?  

Has the collapse of EPS been of such a grand scale that even the MMF 2.4 billion euro loan and higher prices for citizens and businesses put together can’t put it back on its feet, but they also need to gain profits on the stock market exchange? 

Or is it true that the state which is still in charge of EPS and which itself was the founder of the energy stock market is playing favorites by selling it to someone at below-cost prices while having different prices for others? Or does the state know something before it is publicly exposed in the open market, and thus wishes to protect the consumers? Who is, then, gaining profits while the conundrum of the energy price control by the state is taking place? 

As they say from The Chamber of Commerce and Industry of Serbia (CCIS), the end of the energy crisis in Europe caused a continuous drop in energy prices at relevant stock markets, starting November last year as well as the final stabilisation of the wholesale prices in the first quarter of this year, which means that there is no more need for limiting retail energy prices in Serbia.       

The first offer sent by EPS thereafter, when we talked to the businessman Zoran Drakulić at the start of this month, was roughly around 91 euros per megawatt hour. This has changed in the meantime—for the worse. “The new offer stands at approximately 94 per megawatt hour. But for the first time, we have business receiving different prices. Some have been quoted at 89, while others have been quoted at 84 euros, 97 euros, etc. They supposedly look at the stock market the day you receive the offer. What’s this supposed to mean, that you depend on which day they’ll look at the stock market and which day they’ll send you the offer?”, says Drakulić. 

The Forming of Market Prices as Figured Out by EPS  

We still haven’t heard from politicians that the market energy price will be formed, while the stock market, though formed in December 2022, didn’t start daily commerce until July last year. Why the business sector hasn’t been noted about the way prices will be formed at the time of high interest rates as well as the ways they can find other suppliers aside from EPS? The answer to this question is evident when we know all market players claim the number one problem in Serbian commerce is transparency.       

As CCIS explains, taking into consideration that starting May 1st the distribution contracts which EPS concluded according to limited prices following Serbian government recommendations (made to protect the economy in the conditions of market disruptions) expire, the Electrodistribution of Serbia started negotiating distribution “according to market principles in competitive conditions”. 

“EPS offers to buyers the service of energy distribution at prices drastically lower compared to up until now limited prices of 119,67 per megawatt hour. Prices are formed according to several factors, including the total energy consumption, the diagram consumption, as well as the market conditions. During the negotiation with each buyer, the Electrodistribution of Serbia offers different options in terms of price deals, supply periods, as well as the possibility of synchronizing energy prices with the shifts the market is undergoing during the negotiated supply period, which buyers can choose according to their needs”, they say at CCIS.  

According to data from SEEPEX, the Serbian energy stock market, the average market price in April this year was 62,23 euros per megawatt hour. Also, for the last 90 days, when you look at the stock market exchange, the price has always been lower than 119,67 euros which is the price the business sector has been paying all that time. 

If you look at stock market reports from last Friday, the lowest price was 72, and the highest was 135 euros per megawatt hour.

 

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