Focus on Energy, 2010 - Karanovic & Nikolic

Public EnterprisesPUBLIC ENTERPRISE “ELEKTROPRIVREDA SRBIJE” (“EPS”)EPS is currently the only producer of electricity in Serbia. Through five of its fully-owned subsidiaries, EPScurrently operates the entire natural infrastructure for the production of electricity.EPS operates the national distribution grid through five fully-owned subsidiaries. These are in charge ofthe operation of the distribution networks located in five of the regional centres in Serbia: Belgrade, NoviSad, Niš, Kragujevac and Kraljevo.In addition, EPS manages two mining basins for the excavation of lignite coal - Kostolac and Kolubara (providingthe supply of coal for the thermo power plants) mostly used by TPP “Kolubara” 1 and TPP “Nikola Tesla” 2 .The privatization of EPS has long been on the agenda of the Serbian Government but so far, there wereno concrete movements towards the realization of this plan. The prevailing opinion of the experts andthe investment community is that EPS will be ready for the privatization process only after it has beenrenovated and only after the full liberalization of the energy market and the reform of the energy regulatoryframework.PUBLIC ENTERPRISE “ELEKTROMREŽA SRBIJE” (“EMS”)26EMS operates the national transmission grid system and is the operator of the organized market for electricalenergy. In its capacity as the operator of the transmission grid, EMS decides on third-party accessand connection to the transmission grid and it is also responsible for the allocation of the cross-bordertransmission capacities. As the market operator, EMS is also responsible for the issuance of the rules ofoperation of the electricity market governing the trade of electricity on the organized market.FOCUS ON ENERGYPUBLIC ENTERPRISE “SRBIJAGAS”“Srbijagas” manages the national infrastructure for the transportation and distribution of natural gas. Inits capacity as the operator of the natural gas transportation and distribution systems, “Srbijagas” shouldissue the transportation and distribution network rules of operation which should govern the technicalterms for the connection and use of the transportation and distribution systems. To date, no such ruleshave been issued.Aside from the transportation and the distribution of natural gas, “Srbijagas” should also act as the operatorof the natural gas storage facilities. Whilst it is supplied with the relevant licenses, “Srbijagas” is notyet effectively conducting this activity as it has not yet finalized the construction of its gas storage facility“Banatski Dvor” in Vojvodina.PUBLIC ENTERPRISE “TRANSNAFTA”“Transnafta” operates the national oil pipeline system. As the operator of the oil transportation system“Transnafta” should issue the oil pipeline grid code which should prescribe, amongst other things, theterms governing third-party access, as well as technical terms for the connection to the pipeline system.“Transnafta” has not yet issued the transportation system grid code. “Transnafta” also holds the licensefor the oil products pipeline but this pipeline has not yet been constructed.1 TPP “Kolubara” is located at the edge of Kolubara coal basin in the village Veliki Crljen, and is operated by EPS. The total installed capacity of its fiveunits amounts to 245 MW.2 TPP Nikola Tesla, with its two units TENT A and TENT B, is a power plant complex operated by EPS, located on the right bank of the river Sava,approximately 40 km upstream from Belgrade, near the town of Obrenovac. By far the largest in Serbia, the complex generates around 16 TWh annually,which covers almost half of Serbia’s needs for electricity.