Electricity restrictions looming?

Serbia’s electricity sector is entering 2009 suffering from the same problems that have blighted it for the last 20 years.

Izvor: B92

Thursday, 15.01.2009.

10:54

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Serbia’s electricity sector is entering 2009 suffering from the same problems that have blighted it for the last 20 years. The countries in the region, which have previously suffered from a chronic lack of electrical energy, suddenly find themselves with a surplus. Electricity restrictions looming? However this surplus is only of a temporary nature, brought about by the global recession and a fall in output. A drop in demand has led to falling electricity prices. Electricity consumption rose in Serbia during the first few days of the energy crisis, brought on by gas shortages. The majority of state officials and the Serbian Electricity Company (EPS) tried to reassure the public that “there’s enough power“ and that more would be brought in if the need arose. However, the fall in electricity prices on the regional market could once again lead to turmoil, if the authorities allow themselves to be taken in by the illusion that additional electricity can be purchased at reasonable prices. It would mean reforms in the electricity being postponed for another year, and it would also be a sure sign that consumers might once again have to fear the introduction of electricity restrictions. Precisely because of the lack of investment in the electrical energy sector, Serbia has gone from being one of the regional electrical export leaders to a country where appeals are made to consumers to use electricity sparingly in mid-winter. As a result, the same woes continue to face the national electricity industry—misuse of electrical energy as a social category, ever greater production deficiencies, and a closed, monopolized market.

Electricity restrictions looming?

However this surplus is only of a temporary nature, brought about by the global recession and a fall in output. A drop in demand has led to falling electricity prices.

Electricity consumption rose in Serbia during the first few days of the energy crisis, brought on by gas shortages. The majority of state officials and the Serbian Electricity Company (EPS) tried to reassure the public that “there’s enough power“ and that more would be brought in if the need arose.

However, the fall in electricity prices on the regional market could once again lead to turmoil, if the authorities allow themselves to be taken in by the illusion that additional electricity can be purchased at reasonable prices. It would mean reforms in the electricity being postponed for another year, and it would also be a sure sign that consumers might once again have to fear the introduction of electricity restrictions.

Precisely because of the lack of investment in the electrical energy sector, Serbia has gone from being one of the regional electrical export leaders to a country where appeals are made to consumers to use electricity sparingly in mid-winter.

As a result, the same woes continue to face the national electricity industry—misuse of electrical energy as a social category, ever greater production deficiencies, and a closed, monopolized market.

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