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WHAT MAKES LICENSE ISSUE DIFFICULT? ...

BELGRADE, 14 September – The Council of the Energy Agency of the Republic of Serbia issued a license for electricity transmission to PE Elektromreza Srbije and a license for electricity generation to HPP Drinsko-Limske.

The Council approved the issue of three more licenses for electricity trading on electricity market and six more for oil and oil derivates trading.

Since mid June, the Agency has issued 47 licenses to companies that have complied with the required terms, while 530 applications are being processed. 450 applications were submitted just before – and for a few days after – the 1 July deadline set by the Energy Law for acquiring energy license.

Since licensing is a new procedure, harmonized with world standards in this area, and since significant documentation is required to be submitted with application, the whole process took quite some time and was as a demanding task for the energy entities. Checking and examination of the submitted documentation and determining whether all the legal, technical and economic terms have been met is extremely serious, complex and subtle task for the Agency.

The amount of documentation, and the fact that most of the applications were submitted at the very last moment, inevitably causes problems in the overall efficiency of the Agency, especially with license issue.

The Agency’s experts have managed to process about 300 applications in the past couple of months, however, due to incomplete documentation, most of these applications have had to be returned to the energy entities (some even a few times) and additional documentation has been requested. All these applications have to be reviewed and decided on again.

License issue is just one of the activities that has been entrusted to the Agency by the Energy Law. The Agency was established a little over a year ago as an independent regulatory body for electricity, gas, oil and heat sectors.

One of the most important activities that engage the Agency’s experts is tariff systems for calculating electricity prices and energy services prices. One of everyday activities of the Agency is ruling on lodged appeals concerning decisions of the energy entities decisions as well as monitoring of compliance with rules and regulations of the energy system operations.

Harmonisation of the activities of the energy entities on providing regular electricity supply and services to customers, customer protection, providing level playing field, collection and processing of data on entities that operate in the domestic market are also part of the Agency’s ongoing job.

The Agency is obligated to issue licenses and thus enable companies to operate on the domestic market, but also to prepare all the necessary regulation that should come into force from 1 January 2007 to ensure to that the commitments undertaken by signing the Energy Treaty are met.


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