Amendments to the Energy Law

As part of the reforms in the field of energy and mining, the National Assembly of the Republic of Serbia, at its session held on 20 April 2021, adopted the Law on Amendments to the Energy Law (the”Law”).

The Energy Law adopted in 2014 (“Official Gazette of RS“, No. 145/2014 and 95/2018) regulates the following issues:

  • goals of energy policy and the manner of its realization;
  • conditions for reliable, safe and quality delivery of energy and energy products and conditions for safe supply to customers;
  • protection of energy customers and energy sources, conditions and manner of performing energy activities;
  • conditions for construction of new energy facilities;
  • status and scope of work of the Energy Agency of the Republic of Serbia (the “Agency”);
  • use of renewable energy sources;
  • incentives and guarantees of origin;
  • the manner of organization and functioning of the electricity, natural gas and oil and oil derivatives markets;
  • rights and obligations of market participants;
  • establishment of ownership on the networks of system operators, as well as supervision over the implementation of this law;
  • production, distribution and supply of thermal energy as energy activities.

Some of the novelties that the Law will bring are:

  • the obligation to develop and monitor the implementation of the Integrated National and Energy Climate Plan in accordance with the obligations under the Energy Community Treaty;
  • arranging the merger of the organized electricity market with neighboring markets by appointing a nominated electricity market operator;
  • new motor fuels such as liquefied natural gas and hydrogen are defined;
  • adding energy to the wholesale supply of natural gas;
  • a new participant in the natural gas market is being introduced – wholesale of natural gas for supply;
  • introduction of new participants in the electricity market: customer producer, electricity storage and aggregator;
  • it is specified that the Energy Development Strategy is the basic act which determines the energy policy;
  • expanding the authority of the Agency to ex officio issue a decision on temporary revocation of a license in cases provided by law;
  • specifying that the license is issued if a use permit or a decision on legalization of the facility has been issued for the energy facility with the report of the technical inspection commission that the facility is suitable for use;
  • expanding the scope of the Security of Supply Report, which provides a complete picture of the supply of the market of the Republic of Serbia with energy and energy products, as well as measures taken to ensure security of supply;
  • specifying the competencies and clearly defining the powers of the energy inspector in performing inspection supervision;
  • introduction of the obligation that appropriate groups of users of pressure equipment must meet the requirements regarding the number and professional qualification of employees and the appropriate professional exam;
  • amendment of provisions related to guaranteed and regular supply, unauthorized consumption, disconnection and suspension of electricity, protection of electricity facilities;
  • more precise definition of the energy endangered buyer of electricity or natural gas;
  • specifying the obligations to hold operating reserves by type of production;
  • defining the competencies of local self-government units related to the issue of issuing licenses and acting in the second instance;
  • The provisions relating to renewable energy sources are deleted, as they will be the subject of a special Law on the Use of Renewable Energy Sources.

The latest amendments will enable the harmonization of domestic regulations with the regulations of the European Union, as well as the elimination of shortcomings that have been noticed in the application of the existing Law.