ECS-02/08: North Macedonia / electricity

summary of the case

registered: upon complaint 03.07.2008

 

 

 

Case ECS-2/08 has been initiated upon a complaint. The two aspects of the amendments to the Energy Law from 2008 challenged by the complaint were:

  • the position of the state-owned generation company on the regulated wholesale market for electricity, and,
  • the exclusion of the distribution system operator from electricity supply by the generation company when it comes to electricity needed to cover commercial losses.

According to the Secretariat’s initial assessment, bringing these amendments in compliance with the Energy Community Treaty’s rules on free movement of electricity and competition would require further legislative or administrative action.

The Secretariat was of the view that North Macedonia has failed to open its wholesale electricity market in line with the requirements of the Directive and that it has arranged the position and structure of the state-owned electricity generator ELEM in a way discriminating against non-domestic electricity and foreclosing the regulated market to the detriment of consumers. Furthermore, the regulated distribution tariffs failed to take into account costs incurred for purchasing electricity necessary to cover losses and thus breaches the principle of cost-reflectivity.

Following the adoption of a new Law on Energy in February 2011 by North Macedonia, and the signature of an Implementation Partnership for secondary legislation in April 2011, the Secretariat decided to close cases ECS-2/08, 4/08 and 1/09.