Electricity

Implementation indicators

  • Unbundling

    Unbundling

    Transmission and distribution network operators are unbundled in accordance with the acquis.

  • Access to the system

    Access to the system

     Access to the system is enabled via transparent and non-discriminatory rules and tariffs. Connection Network Codes are directly applicable, but still to be implemented. The Transparency Regulation is transposed and implemented to a large extent.

  • Wholesale market

    Wholesale market

    The (bilateral) wholesale market is open and competitive and a balancing market is operational. Market concentration is moderate. REMIT has not been transposed.

  • Retail market

    Retail market

    The retail market is open for competition and small customers and households are entitled to universal service at regulated prices. Supplier switching is facilitated by a web-based comparison tool.

  • Regional integration

    Regional integration

    Interconnection capacities on the border with Greece are allocated through SEE CAO, others bilaterally. A project for market coupling with Bulgaria was resumed upon the appointment of MEMO as a nominated electricity market operator.

State of compliance

Implementation of the electricity acquis is steadily improving after the adoption of the Energy Law in 2018. The launch of the balancing market in 2020 and the recent designation of a nominated electricity market operator, as the first step to enabling the establishment of a day-ahead market and its coupling, were breakthroughs.

The state-owned transmission system operator MEPSO is ownership unbundled and certified in accordance with the Secretariat’s Opinion. The distribution system operator Elektrodistribucija is legally unbundled from supply and generation within the EVN Group. Accounting, legal and functional unbundling and rebranding were fully implemented in the course of 2019. The closed distribution system operator within the state-owned generation company ESM serves less than 80 customers and is thus exempt from legal unbundling. Pursuant to the Energy Law, Connection Network Codes are directly applicable in accordance with North Macedonia’s obligations under the Energy Community and membership in ENTSO-E. The implementing rules of network operators have not been amended accordingly.

The wholesale electricity market is open and prices between market players are freely negotiated or set bilaterally or through public tenders. In September 2020, the Government designated a subsidiary of MEPSO, the National Electricity Market Operator (MEMO), to act as the nominated operator of the organised electricity market. After years of delays, balancing rules were implemented as of 1 January 2020, based on a competitive procedure for procurement of balancing services. MEPSO procures both balancing reserve and balancing energy in competitive procedure. The REMIT Regulation was not transposed, which requires amending the Energy Law.

Retail prices are deregulated, except for the universal supplier for which the regulator ERC sets the price. The universal service provider was selected in a tender procedure conducted by the Government in accordance with the Energy Law in May 2019. EVN Home is established as a separate legal entity entrusted with obligations to provide electricity supply as a universal service supplier and supplier of last resort. The price for the supplier of last resort is based on the reference market price, currently HUPX’s day-ahead price. ERC also set up a web platform with a comparison tool to facilitate price comparison for households and small customers. Electricity supply rules, promulgated by ERC, ensure a guaranteed level of customer rights and special protection measures for vulnerable consumers. In addition, ERC adopted Rules for Complaints and Dispute Resolution in April 2020.

MEPSO allocates interconnection capacities with Greece through the regional capacity allocation platform SEE CAO. Other interconnection capacities are allocated bilaterally. Within the SMM block, MEPSO participates with the transmission system operators of Serbia and Montenegro in activities aiming at regional balancing but so far little has been achieved.

The Energy Law allows recognition of supply licenses issued abroad on the reciprocity principle in coordination with the regulatory authority. So far, this provision has not been exercised in practice. The market coupling initiative with the Bulgarian power exchange IBEX, underpinned by a memorandum signed in 2018, received new impetus after the designation of MEMO as the national organized market operator. According to the plan, market coupling is expected to be launched in Q3 2021.