On 1 February, the new Rules on the Procurement of Electricity to Cover Losses in the Transmission Network entered into force. These Rules were adopted pursuant to the Energy Law and published in the Official Gazette of the Republic of North Macedonia No. 9/2026. In accordance with the prescribed procedures, market principles, and criteria set out therein, the first procurement of electricity for the February–March 2026 period has already been successfully carried out.
The purpose of these Rules is to further align AD MEPSO, as a market participant, both legally and commercially, particularly regarding the procurement of electricity to cover system losses. In drafting the Rules, special emphasis was placed on ensuring transparency and non-discrimination, thereby enabling any market participant meeting the stipulated conditions to act as an electricity supplier for loss coverage.
The fundamental changes compared to the prior rules include the following:
- Option to procure electricity across multiple time intervals during the day.
The introduction of a multi-period daily loss diagram allows MEPSO, on the one hand, to improve demand planning, enhance forecast accuracy, and reduce financial costs, while on the other hand, enabling suppliers to submit bids for specific periods for which they have available electricity capacities. - Nullification of the modulation coefficient, which under the previous rules was a restrictive factor for the participation of certain bidders. This amendment broadens the pool of eligible participants and increases bidding flexibility.
- Minimum bid size of 1 MW.
- Bidders may submit offers for any available capacity, for a period of their own choosing. This measure enhances the participation of smaller market players with installed generation capacity in the country, thus stimulating competition.
- Establishment of a merit order list.
Following the receipt of bids, a list of the most competitive offers is created, indicating prices and capacities for each period for which electricity is requested. Selection is carried out by accepting the most economically advantageous offers (EUR/MWh) until the required electricity capacity for the respective period is fully met.
The implementation of the new Rules on the procurement of electricity to cover losses brings significant operational and economic benefits for AD MEPSO, including increased flexibility, improved planning and loss management, a greater number of participating bidders, and reduced costs and imbalances.
The positive effects of the new Rules have already been confirmed by the first completed procurement for the February–March 2026 period, which achieved electricity prices approximately 10% lower in February and 4% lower in March compared to the same period in 2025.