The Government of North Macedonia decided to establish a natural gas market operator and defined the necessary steps. It concluded that the most rational and cost-effective and fastest approach is to task the National Electricity Market Operator – MEMO with the process. It opens up the possibility of creating an integrated entity for both segments.
The National Electricity Market Operator – MEMO of North Macedonia is obligated to initiate and implement the process of establishing the natural gas market operator. The government has mandated it to draft and submit a comprehensive plan covering all organizational, technical, IT, legislative, and financial parameters. Furthermore, MEMO is required to report on its progress at least once every three months to the government, Ministry of Energy, Mining and and Mineral Resources, Ministry of Finance and the Energy, Water Services, and Municipal Waste Management Services Regulatory Commission (ERC or RKE).
The legal framework was established by the Law on Energy back in 2018.
Establishing new entity would require significant time, high costs
Market models in the region were considered – from fully liberalized ones like in Austria and Hungary, to hybrid models in Greece, Croatia, Bulgaria and Romania, the Ministry of Energy, Mining and Mineral Resources explained. The conclusion was that setting up a completely new entity would take a long time and incur high administrative and operational costs.
MEMO already possesses a functional IT platform, a developed market clearing system and proven expertise in managing energy markets, the ministry pointed out.
Such an approach is fully in line with European practices for transition markets and it enables the gradual creation of an integrated-combined operator for electricity and natural gas, the announcement said.
Move is essential for interconnectors, competition, transparency
The adopted decisions and assigning the said role are of fundamental and strategic importance for the ministry as well as for the country’s entire energy sector as regards the development of gas interconnectors, market competition, transparency, compliance with the European Union’s regulations and for institutional efficiency, the update reads.
North Macedonia intends to commission the first gas interconnector with Greece by the middle of next year, and the one with Serbia before the end of 2028.
The establishment of an operator would enable the transition from the initial phase of liberalization toward the maturation of the gas market, the formation of transparent and market-based prices, and the introduction of efficient balancing mechanisms for the benefit of market participants and end consumers.
