Serbia Powers Up: New Energy Act Adopted

The new Energy Act (the Act) was adopted by the Serbian Parliament on 29 July 2011. The aim of the Act is to harmonise domestic energy regulations with those of the European Union. By adopting the Act, Serbia will implement the Second EU energy package, while the Third EU energy package will be implemented only in part.

The Act envisages liberalisation of the Serbian energy market, introduces market-based mechanisms for determining energy prices and provides a new incentive structure for electricity generation from renewable sources.

Market liberalisation

Liberalisation of the electricity market will begin on 1 January 2013 and end by 1 January 2015. As the last step in the liberalisation process, households will be able to freely choose their supplier after 1 January 2015.¹