Focus on Energy, 2010 - Karanovic & Nikolic

accordance with the Energy Law, the tariff system and the methodology for the establishment of tariffs.These are issued by the Energy Agency, with the approval of the Government.Qualified BuyersBy signing the Energy Community Treaty, Serbia assumed an obligation to grant the status of qualifiedbuyer within the meaning of the European Community Directive Concerning Common Rules for the InternalMarket of Electricity 3 and the European Community Directive Concerning Common Rules for theInternal Market in Natural Gas 4 .In 2008, the Energy Agency adopted two resolutions establishing the minimum level of annual consumptionof electricity and gas which qualifies the consumer for the status of a qualified buyer. According tothese resolutions, non-household consumers may qualify for the status of a qualified buyer irrespectivelyof their annual consumption of electricity or gas, while the household consumers qualify for this status iftheir annual consumption exceeds, for electricity 200,000 kWh, and for natural gas - 50,000 m3.30The Energy Law provides that any buyer may obtain the status of a “qualified buyer” if, within the last 12months, the total energy consumption of that buyer exceeded the defined annual energy threshold setby the Energy Agency.Given the very low prices of electricity and gas, no company or household in Serbia has had to apply forthe status of an eligible buyer.Renewable EnergyFOCUS ON ENERGYThe promotion and development of renewable energy is high on the list of priorities in the Energy Strategyand the Energy Program. In line with this, the Energy Law lays down the foundations of the regulatoryframework which stimulates investment in RES energy, including the rules governing the status ofa qualified producer of energy and the list of incentives which should be provided to qualified producersof energy.Investors eligible for the status of qualified producer include:1. Producers that use RES (RES: is defined by the Regulation on the Terms and Conditions for the Statusof the Qualified Producer), or the fuel sources separated from communal waste (depot powerplants);2. Small electric power-plants – electric power plants with an installed power of up to 10 KW; and3. Combined power plants producing electric energy and heat, once they fulfil the conditions relating toenergy efficiency.The procedure for acquiring the status of a qualified producer involves the filing of a request to the MEMincluding the submission of evidence of the fulfilment of the Energy Law requirements and the accompanyingregulations issued by the Government. The MEM is required to issue a ruling on a request within 30days of the filing of such a request.Under the Energy Law, qualified producers are entitled to various incentives aimed at the stimulation3 EC Directive 2003/54/EC4 EC Directive 2003/55/EC