Market Structure

The Macedonia electricity market currently consists of three separate segments of end users:

  • Households: connected to the low-voltage grids, and pay a regulated price; Households are tariff-based electricity consumers who meet their electricity needs in the electricity market from the supplier to the tariff-based consumers by way of regulated bilateral agreements.
  • Companies: connected to the low-voltage grid (small industry and SMEs) and pay the same regulated price as the households; and
  • Largest electricity consumers in the country: connected directly to high-voltage grid and operate on a liberalized market as of September 2008.  Qualified (largest) consumers of electricity are: CEMENTARNICA USJE AD – Skopje, OKTA AD – Skopje,SKOPSKI LEGURI DOOEL UVOZ-IZVOZ – Skopje, MAKSTEEL AD – Skopje, FENI INDUSTRY AD – Kavadarci, JUGOHROM FERROALLOYS DOO – Jegunovce, BUČIM DOOEL – Radoviš, ARCELORMITTAL SKOPJE (CRM) AD – Skopje, and ARCELORMITTAL SKOPJE (HRM) AD – Skopje

The customers paying the regulated price are referred to as tariff customers, while the customers on the liberalized market are referred to as eligible customers.

The regulated electricity market:

  • Conducts its purchases & sales of electric energy and power at prices and under conditions approved by the Energy Regulatory Commission. Contracts between the participants in the regulated segment of the electricity market are subject to approval by the Energy Regulatory Commission.

Participants in the regulated electricity market are as follows:

  • Electricity producer whose license incurs the obligation to provide public services (AD ELEM – Skopje);
  • Privileged producers of electricity;
  • Electricity supplier of last resort;
  • Electricity supplier to tariff-based consumers, ending 31 December 2014 (EVN MAKEDONIJA AD – Skopje);
  • Electricity transmission system operator to provide the systemic services, operational reserves and balancing energy (AD MEPSO – Skopje); and
  • Operator in the electricity market to purchase & sell the produced electricity from the privileged producers of electricity (AD MEPSO – Skopje).

The unregulated electricity market:

  • Conducts its purchases & sales of electric energy and power at prices and under conditions mutually agreed between the purchaser and seller, at their own discretion, risk and expense.

Participants in the unregulated electricity market can be as follows:

  • electricity producer whose license incurs the obligation to provide public services, in circumstances of sales of electricity surplus in compliance with the surplus sales rules;electricity producers;
  • electricity suppliers;
  • electricity traders;
  • electricity transmission system operator in circumstances of electricity procurement for the purpose of covering the losses in the electricity transmission system, under market conditions, in a transparent, non-discriminatory and competitive manner;
  • electricity transmission system operator in circumstances of procurement of systemic services and adequate operational reserve, under market conditions, in a transparent, non-discriminatory and competitive manner (as of 1 January 2015);
  • electricity distribution system operator in circumstances of electricity procurement for the purpose of covering the losses in the distribution network, under market conditions, in a transparent, non-discriminatory and competitive manner; and
  • Eligible consumers of electricity.