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ELECTRICITY TRANSMISSION TARIFFS SEPARATED FOR THE FIRST TIME ...

Belgrade, February 27, 2008 - Following the Decision of the Energy Agency of the Republic of Serbia henceforth any non-household customer may acquire the status of an eligible electricity and gas customer regardless of the annual consumption. As of February 23, 2008 relevant customers can freely choose where to buy their electricity and gas and seek more favourable suppliers.

By means of this 47% of the electricity market and even 90% of the gas market have been opened.

The eligibility threshold amounted to 3GWh annual consumption for electricity and 50 mil. m3 for gas to date, providing for 350 of large electricity and 13 of gas customers to choose their suppliers. However, non of these electricity customers had filed an application for eligible customer status at the Agency, due to a good electricity price provided by PE EPS, nor had they requested to switch suppliers. One natural gas buyer only acquired such status, however, he never opted to switch.

In order to use the eligible customer status in transparent terms and to acquaint customers with use of network charges, apart from the electricity transmission tariff system (applicable since January 1, 2008) also electricity distribution tariff systems (price proposal from PE EPS is expected) have to be in use, as well as transport and distribution tariff systems pertaining to the gas sector (PE Srbijagas will soon submit its price proposal).

It is also important that energy enterprises submit to the Agency their transmission/transport and distribution grid codes a.s.a.p. for approval (PE EMS is about to finalize its Transmission Grid Code and the Agency will give approval soon thereafter).

The Agency has met its obligations deriving from the Energy Community Treaty according to which all non-household customers shall receive eligible customer status as of 2008.

Following the provisions of the above mentioned Treaty, household customers shall acquire eligible customer status as of 2015.


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