Power suppliers to loose licenses after failing to secure electricity

The Energy and Water Services Regulatory Commission of the Republic of North Macedonia (ERC) has launched the procedure to repeal the licenses of electricity suppliers because they didn’t provide on time all the quantities under the contracts with the consumers.

Rising electricity prices are causing problems to suppliers all over Europe, and now similar difficulties have emerged in the Western Balkans. According to an analysis by Balkan Green Energy News, prices in Southeast Europe have soared 60% against pre-pandemic levels.

ERC has started procedures for repealing the licenses of Mist Energy and UPower

The Energy and Water Services Regulatory Commission said it had launched procedures for repealing the licenses of Mist Energy and UPower.

The suppliers didn’t provide the electricity in line with the contracts with consumers on time and the agreed quantity. The two companies also didn’t act in accordance with the previously adopted ERC decisions on measures to harmonize their operation.

ERC has also asked Energija Gas and Power to provide evidence that it has secured the electricity for consumers

ERC has also asked electricity supplier Energija Gas and Power to provide evidence that it has secured the contracted amount of electricity for consumers.

Marko Bislimoski, president of the ERC, said Mist Energy and UPower didn’t buy electricity on time. When the prices on the power exchanges increased, the missing quantities were supplemented by transmission system operator MEPSO’s reserves intended to balance the grid.

MEPSO recorded increased undue use of electricity intended for emergencies and alerted ERC. The electricity that suppliers use from the balancing mechanism is cheaper than the one on the power exchanges, which distorts competition and endangers the grid’s stability.

ERC monitors the situation constantly, and a month ago, it asked the said suppliers to submit evidence that they have provided electricity for their consumers. Still, they did not act until the deadline, and a procedure for revoking licenses has been initiated, according to Bislimoski.