Energy and Water Regulatory Commission of North Macedonia will not be setting the final electricity price in future


It is highly likely that the Energy and Water Regulatory Commission (RKEVU) of North Macedonia will no longer have the role of an electricity market regulator, which is influencing the final price of the electricity that households and small companies are paying, announced RKEVU’s President Marko Bislimoski.

In the future, RKEVU will only be regulating the tariff system i.e. the distribution fee and the electricity price will be formed freely on the market which will be determining the purchase price of an MWh. It means that in the future, RKEVU will be setting only the prices of distribution and transition i.e. it will be regulating the natural monopolies (transmission lines, networks linked to homes, etc). What will the percentage be in the calculations about the final price cannot be stated at the moment because it will depend on several factors.

This has been requested by the Energy Community and since the Republic of North Macedonia is a member, it is obliged to totaly adjust its legislation with EU’s directives. RKEVU stressed that for that purpose, changes in the Law on Energy Production are underway that will determine RKEVU’s new, changed role on the domestic energy market.

“The only countries remaining with a regulated electricity market in the surrounding and even wider, are North Macedonia, Kosovo, and Serbia and that has to change,” said Bislimovski for Meta.mk.

He explained that the universal supplier of electricity will be obliged to put in the final electricity price the margin percentage.

Still, according to the calculations of the regulators, the regulated price is now 4,81 MKD for spent KWh and if the customers would be able to enter the free market, then it would mean an increase of prices by 30%.

The distribution margin is now calculated as the sum from an income for covering operational expenditures, a return of capital, expenditures for covering losses of electricity, amortization, taxes and other expenditures. The lowest margin price of 11,5%, fixed, was offered by EVN Home, as a universal supplier of electricity, at a tender in 2018. It will remain until 2023 and until then it will be calculated in the final sum in the electricity bills. EVN Home is obliged with this margin percentage to cover the expenditures for amortization, losses, operative costs, outstanding receivables, etc, and to get a certain profit.

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