At the beginning of the sitting Committee Chairman Veroljub Arsic said that, pursuant to the Energy Law, the Energy Agency Activity Report for said year contains information on the financial transactions and general status of the Republic of Serbia’s energy sector, within the Agency’s purview.

The Annual report was presented by Dejan Popovic, Agency Council President, who first off explained the Agency’s authorities and manner of operation, stressing that it regulates the price of energy, that is the guaranteed electric power and gas supply for households, the price of electric energy transfer, gas transport, distribution of electric power and gas and the transport of oil and oil derivatives.

Popovic said that the security of supply of electric power, natural gas and oil derivatives in 2019 was satisfactory, adding that the total electricity consumption was at approximately same level as in 2018. The Council President pointed out that the consumption by households decreased by 0.6% percent, while it increased in the industry, which indicates a positive trend in industrial operation. The Council President stated that Serbia imported a net 367 gigawatt hours (GWh) more than it exported and 49.2 of electricity were sold on the free market, which is more than in 2018. The energy development strategy for the period until 2025 predicts an increase in the consumption of electricity of less than 1% on average per year, which was not achieved in 2018. As for reaching the 27% share of production from renewable sources, in 2019, 134 MW power wind turbines were installed and at the end of the year the total power of the installed turbines on the distribution network came up to 373 MW, while 311 small hydropower plants were also hooked into the distribution network contributing 201 MW in total.

Presenting the Report, the Council President pointed out that the Agency body operates with the Decision on the exemption of the new interconnector for commercial gas, which was put into operation last year and is one of the most important energy projects in Serbia in the last 30 years. It transports natural gas through the Republic of Serbia, which is connected to the Bulgarian and Hungarian national transport systems.

The Council President also pointed out the low level of gasification of households, about 10% of the total number, which means that there is potential for higher growth in this sector and implies the development of gas infrastructure. For the further development of the gas market, it is of great importance to accelerate the procurement and installation of appropriate measuring equipment.

Popovic also stated that in 2019 PJ EMS AD continued its activities aimed at developing the system, strengthening cross-border capacities and participating in coordinated auctions of cross-border capacities. In addition, when giving consent to regulated prices, the Council of the Energy Agency of the Republic of Serbia insists on rationalisation in the operation of energy companies and recognition of only justified costs. One of the biggest costs are the high losses of electricity in the distribution network, which the Agency regularly recognizes in a smaller amount than realised, and in accordance with the plan to reduce losses. In 2019, there was a decrease in losses in the distribution network, which compared to the losses in 2018 were reduced by 0.45%, amounting to 11.75% of the electricity taken into the distribution system, which is still very high in relation to the technically justified values.

The Agency Council President also presented the Report on the Agency’s financial operations, pointing out that the revenues mostly come from fees for the costs of issuing licenses, revenues from regulatory fees, refunds and donations. In 2019, the income from fees for the costs of license issuance was significantly lower than planned, by 35%, as well as in relation with the income realised in 2018 - by 29% in nominal terms. The reason for that is the reduction in the number of submitted requests for the issuance of licenses and changes to the existing certificates in 2019.

Following a discussion, the Committee members adopted a Conclusion Proposal accepting the Energy Agency 2019 Annual Activity Report.

The sitting was chaired by Committee Chairman Veroljub Arsic and attended by the following Committee members and deputy members: Natasa Ljubojevic, Zoran Tomic, Ivana Popovic, Ana Beloica, Snezana Paunovic, Vojislav Vujic, Alksandra Tomic, Dragomir Karic, Branimir Jovanovic, Nenad Krstic, Adrijana Pupovac, Cesna Stambolic and Snezana Petrovic.