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Serbia energy – Participants in the energy sector

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The principal pillars of the institutional framework in the energy sector are the Government and the Ministry for Mining and Energy, the Energy Agency of Serbia (the “Energy Agency”) and the Serbian Agency for Energy Efficiency (the “Energy Efficiency Agency”).

On the local level, certain regulatory functions in the energy sector, primarily with respect to the decentralized district heating system are assigned to the local municipalities. The majority of the Serbian energy infrastructure is operated by the public enterprises established by the Government. This makes public energy enterprises an important factor to consider when examining the operation and the regulation of the energy sector as a whole.

Regulatory Bodies

The Government

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The Government performs the primarily policy-making functions in the energy sector. The Government prepares the proposal of the Energy Strategy, and gives its final approval to the Energy Program prepared by the Ministry of Mining and Energy.

The Government supervises the energy pricing policy as it gives its approval to the prices of energy as established by the energy producers.

As the founder of public enterprises in the energy sector, the Government has the final word in their management, and it gives its approval to any significant corporate changes and major investment decisions.

The Ministry of Mining and Energy

The MEM is in charge of the implementation of the energy policy as defined by the Government and the Serbian Parliament. It performs the various administrative, regulatory and supervisory functions in the sectors of energy and mining, electric energy, oil, gas, heating power and nuclear power.

The MEM prepares the proposal of the Energy Program and the annual Energy Balance. Within its regulatory functions, the MEM prepares draft proposals of energy laws and issues regulations for the implementation of energy laws. The MEM is over the issuance of energy permits for the construction of energy facilities. Through the Energy Inspectorate the MEM monitors compliance with the various energy laws and regulations by the participants in the energy sector. It also supervises the design, construction and maintenance of the energy facilities as well as the quality of the energy supply available to the consumers.

The Energy Agency

The Energy Agency is the main regulatory body in the energy sector. The Energy Agency decides, amongst other things, about the issuance and termination of the energy licenses, it establishes a tariff system for the calculation of energy prices and monitors the application of these tariff systems by the participants in the energy sector. It also approves on the rules of operation regarding the transmission, transportation and distribution network that are issued by the various system operators. Finally, it decides on appeals that have been made against system operators where the system operators have denied a third party access to the transmission, transportation and distribution networks.

The Energy Efficiency Agency

The Energy Efficiency Agency was established in 2002 with the goal of promoting and enhancing energy efficiency in Serbia. The current status and operations of the Energy Efficiency Agency are regulated by the 2004 Energy Law.

The Energy Efficiency Agency operates as a primarily consultative body and does not have any regulatory powers. The main duties of the Energy Efficiency Agency are to propose measures for the improvement of energy efficiency and to manage and coordinate programs for the rational consumption of energy and the use of renewable energy resources.

The Energy Efficiency Agency is managed by a director appointed by the Government and it is answerable to the Government for its action.

Ministry of Environment and Spatial Planning ( “MESP” )

The MESP decides about the issuance of permits necessary for the construction of energy facilities, including location permits, construction permits and use permits.

In addition, the MESP decides about the issuance of environmental permits which need to be obtained by investors in the energy sector. This includes the granting the approval of an environmental impact assessment study and integrated environmental permits.

The Ministry of Agriculture, Forestry and Water Manag ement ( “MAFWM” )

MAFWM is in charge of the regulation and supervision of Serbian forests and waters, directly or through public enterprises established by the Government to manage these resources. Such enterprises are the Public Enterprise “Srbijašume”, established to manage and supervise the use of the national forests and the Public Water-management Enterprise “Srbijavode” which is in charge of the management and the use of national waters.

Local Governments

Local governments are responsible for the preparation of the “Program of Development of the Energy Sector” in their respective territories in accordance with the Energy Strategy. They perform regulatory functions with regard to their respective district heating systems.


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