Friday, 8 October 2021

25th Sitting of the Committee on the Economy, Regional Development, Trade, Tourism and Energy

At the sitting held on 8 October 2021, the members of the Committee on the Economy, Regional Development, Trade, Tourism and Energy considered the information on the price and supply of the Serbian energy market.

The Committee members were addressed by Zoran Lakicevic, State Secretary at the Ministry of Mining and Energy who briefed them on the current situation on the energy market. Market projections show that, based on financial indicators, a stabilisation of gas prices is expected, especially at the end of the season. Speaking of reserves, the State Secretary said that Serbia receives six million cubic meters of gas every day through Bulgaria and that, if necessary, gas will be taken from storage, 15 million cubic meters of gas a day.

The State Secretary said that Serbia pays gas far less than the current market price and that the Ministry would work on extending the contract and the possibility of maintaining the same or at least an approximate price in the coming period. As for the price of electricity, which fluctuated drastically in the previous period, Lakicevic pointed out that the price for households would continue to be fixed, but that the situation is slightly different for the economy. The contracts currently being concluded with economic entities will have higher electricity prices compared to those in August. The need to import electricity is small and there will probably be no need for additional imports, Lakicevic said. As for oil derivatives, Serbia has enough reserves, which will be increased by 26 tons by the end of the month.

Dejan Popovic, President of the Energy Agency Council, said that the Agency permanently monitors the market, adding that the previous period’s multiple increase in gas prices is unprecedented and it would not affect Serbia for now, due to the agreement Serbia has with Gazprom. As for the next contract, it is too early to say. Speaking of gas supply, thanks to the construction of the Gastrans stream, Serbia has secured long-term stability of gas supply in the next 30 years. As for electricity, Popovic said there would be no disruptions in the supply, despite the jump in prices on the world stock market, primarily because Elektroprivreda Serbia supplies over 98% of consumers in Serbia. However, this is a warning of how much it means to maintain the state’s energy security.

Representatives of the Serbian Chamber of Commerce, Ministry of Economy and the Serbian Heating Plants also addressed the sitting.

The Committee Chairman said that there has been a disruption in market prices which is a global problem, but the electricity prices for the general population would not change. What is worrying though is that these prices can lead to turbulence in the manufacturing and construction industries. He said that Serbia must conduct the reform of the energy sector earnestly, cautiously and conservatively, in order to overcome these situations as painlessly as possible.

Arsic said that all relevant institutions need to meet periodically and continuously in Committee sittings, where they would analyse the changes on the energy market to be able to react as surely and quickly as possible to the global challenges that led to this crisis.

The Committee went on to note the imminent expiry of the term of office of member of the Council of the Commission for Protection of Competition, Cedomir Radojcic, on 27 December 2021. The imminent expiry of the term which he was elected for, the conditions have been met to initiating the procedure for the election of a member of the Commission Council, which begin three months before the expiry of term of office.

The sitting was chaired by Committee Chairman Veroljub Arsic.

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monday, 25 october
  • 9.00 - sitting of the Committee on the Economy, Regional Development, Trade, Tourism and Energy (National Assembly House, 13 Nikola Pasic Square, hall 2)

  • 9.00 - sitting of the Agriculture, Forestry and Water Management Committee (National Assembly House, 13 Nikola Pasic Square, hall 4)

  • 10.00 - sitting of the Committee on Finance, State Budget and Control of Public Spending (National Assembly House, 13 Nikola Pasic Square, Small Hall)

  • 13.00 - sitting of the Committee on Constitutional and Legislative Issues (National Assembly House, 13 Nikola Pasic Square, hall 1)

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