Case ECS-02/21: Serbia / electricity

procedural history

• 21 July 2022: Opening Letter

  Case

  On 21 July 2022, the Secretariat sent an Opening Letter to Serbia in Case ECS-2/21. The Secretariat takes the preliminary view that by failing to make commercial electricity capacity available at the interconnection lines between Niš and Kosova B and between Kruševac and Podujeva due to its TSO’s and regulatory authority’s inaction, the Republic of Serbia failed to comply with Articles 12, 16(3), 19 of the Electricity Regulation, and Articles 36, and 37 of Directive 2009/72/EC of the Electricity Directive.

   

  Procedure:

  The purpose of this initial step in the procedure is to give Serbia the possibility to react to the allegation of non-compliance with Energy Community law, and enabling the Secretariat to establish the full factual and legal background of the case. According to Articles 7 and 17 of the Rules of Procedure for Dispute Settlement, interested parties may be granted access to the case file and may submit written observations on the present case to the Secretariat during the preliminary procedure.

• 1 March 2023: Reasoned Opinion

  Steps taken

  On 1 March 2023, the Secretariat sent a Reasoned Opinion to Serbia for non-compliance with the electricity acquis to follow up on its Opening Letter of 21 July 2022.

  In the Reasoned Opinion, the Secretariat reiterates its view that by failing to make commercial electricity capacity available at the interconnection lines between Niš and Kosova B and between Kruševac and Podujeva due to its TSO’s and regulatory authority’s inaction, the Republic of Serbia fails to comply with the electricity acquis.

  
  Reasoning

  The Secretariat came to the conclusion that Serbia’s TSO (EMS) has failed to agree with Kosovo*’s TSO (KOSTT) on coordinated cross-border capacity allocation at the interconnection lines between Niš and Kosova B and between Kruševac and Podujeva. As EMS has not agreed with KOSTT on a mechanism to set the net transfer capacity (NTC), nor has it determined a value for the available interconnection capacity, the NTC value at these interconnection lines is zero. Moreover, the national regulatory authority of Serbia, AERS, did not ensure compliance by EMS with its obligations in this respect.

  
  Procedure

  Serbia is requested to rectify the issues of non-compliance with Energy Community law identified in the Reasoned Opinion within a time-limit of two months. Depending on the reply from Serbia, the Secretariat may submit the case to the Ministry Council for a decision on the non-compliance of Serbia with Energy Community law.

• 12 July 2024: Reasoned Request

  Steps taken

  After carrying out a preliminary procedure, on 12 July 2024, the Secretariat submitted a Reasoned Request to the Ministerial Council, seeking its decision on the failure of Serbia to comply with the Electricity Regulation and Electricity Directive as well as Articles 6, 10 and 11 of the Energy Community Treaty.

  
  Procedure

  Before the Ministerial Council will take a decision, the Energy Community Presidency and Vice-Presidency shall ask the Advisory Committee for its opinion on the Reasoned Request. The Ministerial Council is not bound by the opinion of the Advisory Committee.

   

• 18 December 2025: Ministerial Council Decision on failure

  Steps taken

  After having considered the opinion of the Advisory Committee, which upheld the Reasoned Request, the Ministerial Council took a decision regarding the failure of Serbia to comply with the Electricity Regulation and Electricity Directive as well as Articles 6, 10 and 11 of the Energy Community Treaty. The Ministerial Council declared the existence of a breach by Serbia of the Electricity Regulation and Electricity Directive as well as Articles 6, 10 and 11 of the Energy Community Treaty.

  In Article 1 of the Decision, the failure is described in detail. Article 2 of the Decision calls upon Serbia to take all appropriate measures to rectify the breach and ensure compliance with Energy Community law immediately.

  
  Procedure

  Serbia is asked to report to the Secretariat and the Permanent High Level Group about the measures taken. The ministers invited the Secretariat to initiate the procedure under Article 92 of the Treaty if the breach is not rectified by 1 July 2026.