Focus on Energy, 2010 - Karanovic & Nikolic

The ERC established the feed-in tariffs for electricity offered on the market by the privileged producers. Atthe moment, the Government offers long-term contracts for the buyout of such electricity for a period of20 years. However, the ERC reassesses feed-in tariffs and the time frame of the buyout agreements everythree years and is entitled to amend such agreements.Every category of renewable energy has specific feed-in tariffs:and 12 EUR cents/KWh, depending on the annual production;Energy TradeAs in the other areas of energy mentioned, the Energy Law regulates the energy trade only relating to thedefinitions and general rights and obligations of the participants.54The provisions of the Energy Law are generally in accordance with the Energy Community Treaty and since2008 all non-household customers can acquire privileged status as long as certain preconditions regardingconsumption are met. In accordance with the relevant EU Directive 9 on internal electricity markets, all customers,including households, should have the opportunity to choose their electricity supplier from 2015.FOCUS ON ENERGYThe ERC is the regulator of the markets through prescribing tariffs, rendering decisions and issuing otherregulations on the pricing of energy in Macedonia. Price decisions on electricity production, on transmissionand distribution and on the highest allowed tariffs are also established by the ERC. Also, the oil price ceilingfor suppliers and traders, as well as gas tariffs regarding national grid consumers are determined by theCommission, using its own rules and other by-laws on pricing methodology. The ERC also sets the feed-intariffs for the privileged producers of electricity that are using renewable resources for production.Other interesting limitations under the License Rulebook are that only one entity can be issued an energylicense for a specific area of Macedonia and on the territory or part of the territory of a particular municipality,regarding:These provisions are somewhat contrary to the purpose of the Energy Community, so it is expected thatthese will be amended with the changes of the Energy Law in 2010 10 .provisions: 1) guaranteed grid access, 2) long-term contracts for the electricity produced, and 3) purchase prices that are methodologically based onthe cost of renewable energy generation. (Source: Mendonça, M. (2007) Feed-in Tariffs: Accelerating the Deployment of Renewable Energy. (London:EarthScan)9 Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity10 The Energy Community representatives already pointed out on the disadvantages of the Energy Law, especially regarding the competition issues.