Albania, Montenegro and North Macedonia move ahead on day-ahead market establishment

Electricity
21 May 2019

The WB6 electricity monitoring report, released today by the Secretariat, points to positive developments in the establishment of day-ahead markets in Montenegro and North Macedonia. However, the pace of reforms in the WB6 region overall must be accelerated if market coupling is to take place within the time horizon foreseen. The establishment of a legal framework harmonised with the Third Energy Package and a power exchange, the key prerequisites, are yet to be completed by all WB6 Contracting Parties.

Following the selection of a strategic partner under WB6 technical assistance, the Montenegrin electricity power exchange is expected to go-live in Q1 2020. North Macedonia advanced in establishing the electricity market operator needed for operationalising its day-ahead market.

After the cut-off date of the report, Albania informed about the Government’s decision of 15 May 2019 on establishing the power exchange (APEX), which the Secretariat and other international partners have been supporting for several years. The Secretariat also received the Minister’s confirmation that the concept of re-integrating the two state-owned companies KESH and OSHEE, which have raised concerns by Albania’s international partners, is not being pursued any longer. The report however outlines the significant delays in OSHEE distribution system operator unbundling. 

The report highlights the tangible progress achieved towards finalizing the unbundling and certification of transmission system operators in Kosovo and North Macedonia. Bosnia and Herzegovina remains the only WB6 party where the certification procedure has not even been initiated due to the lack of legislation compliant with the unbundling requirements of the Third Energy Package.    

The report underlines that no progress was made on phasing out the regulation of production prices in Albania and Bosnia and Herzegovina. On the retail side, Kosovo postponed deadlines for the deregulation of prices for medium voltage customers by one year. The only progress was made with regard to the selection of a universal and last resort supplier in a competitive procedure, which was finalised in North Macedonia, and recently launched in Montenegro.

The Western Balkan 6 Electricity Monitoring Report is a deliverable under the project “Technical Assistance to Connectivity in the Western Balkans - Component 2: Regional Energy Market”, which is funded by the European Union and implemented by the Energy Community Secretariat.