Electricity market

• Upon the adoption of the Law on Energy No. 63/06 and in compliance with the amendments thereof, in 2007 and 2008 conditions were developed to gradually open the electricity market in the Republic of Macedonia. The electricity market is based on bilateral agreements in Macedonia. The initial electricity market opening is related to the obligation of electricity supply by the eligible consumers in the free electricity market. The supplies of electricity for the eligible consumers have been realized in accordance with the freely signed bilateral agreements with the suppliers.
  
  In 2008 all the eligible consumers had bilateral agreements signed for electricity supply with more suppliers (traders) registered in Macedonia. All bilateral agreements signed, without commercial details, were submitted and recorded with the Electricity Market Operator under the legal obligations.
  
  The quantities of electricity supplied in the free market by the eligible consumers for 2008 were significantly higher than in 2007 where MEPSO was the supplier to the eligible consumers in the amount of 45% of their demands.
  Over the last quarter of 2008 a significant decline occurred in the electricity supply by the eligible consumers as provided for under their bilateral agreements signed, due to the impact of the global world crisis.
  
  The decline in undertaking of electricity is especially notable with the metallurgical companies because some of them even temporarily stopped the production. The decline in the undertaking can also be seen from the number of signed annual bilateral agreements between traders and eligible consumers including from the quantities in agreements compared to 2008.
  
  In the first quarter of 2009 compared with 2008 the sales went down by approximately 5%. Such undertaking drop is also projected in the 2009 energy supply and demand balance. The implementation of the balance in the first quarter in 2009 is 10,5%. This tendency of dropped electricity undertaking in metallurgy shall continue in the course of 2009 comparing with 2008.