• AERS was founded by the Energy Law as a regulatory body responsible for enhancing and directing the energy market development on the principles of non- discrimination and effective competition, monitoring the implementation of regulations and energy systems operation codes, harmonizing activities of energy entities on providing regular supply of energy and services to customers, ensuring customer protection and equal position as well as other activities stipulated by the Energy Law. AERS has jurisdiction in electricity, gas, oil and district heating sub- sectors. After legal establishment in June 2005, AERS became fully operational in January 2006.

• As per the Energy Law, the Council (managing body of AERS) consists of President and four members, with staggered terms of office (5, 4 and 3 years), elected by the National Assembly. 

• The President of AERS is Mr. Ljubo Maćić, appointed in May 2005.

• AERS has jurisdiction in electricity, natural gas, oil and production of heat in CHP.
  
• Price regulation (determining methodologies for defining tariff elements for calculating the tariffs,  drawing up tariff systems, giving opinion on prices, determining criteria and methods for calculating costs of connection), licensing, approval of network codes and electricity market rules and operation code for natural gas storage systems, dispute settlement (TPA, connection to networks),  determining eligibility criteria, promotion and support of market competition and market monitoring 

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Electricity Market Structure

• Public enterprise for generation, distribution and trading of electricity EPS started its operation in July 2005, based on Government’s Act on foundation issued in January 2005. It is organized as a vertically integrated company, owning 11 legally independent companies - 4 generation companies, 1 generation/coal mining company, 5 distribution/supply of tariff customers companies and one coal- mining company. By the Government’s Act EPS is given the obligation to supply tariff customers in Serbia. 100% state owned company.
• Public enterprise for electricity transmission and transmission system control EMS started its operation in July 2005, based on Government’s Act on foundation issued in January 2005, as the Serbian Transmission System and Market Operator. 100% state owned company.
• 44 companies have been issued licenses for electricity trade (including wholesale, retail, import and export) on the electricity market in Serbia.
• In 2006, eligibility threshold was 25 GWh/year (38 customers; 13% market opening) as initially set by the Energy Law. No applications for eligibility status have been submitted. The Council of AERS passed the decision to set the eligibility threshold at 3 GWh/year (350 customers; potentially 21% market opening) in December 2006. The decision was applied from the 1st of January 2007. In 2008 the Council of AERS passed a decision by which all non-household customers could obtain eligibility regardless of annual consumption, and went further than the requirements imposed by the Treaty establishing the Energy Community by giving the possibility to obtain eligibility to households consuming more than 200.000 kWh/year. The Decision is applied as of February 23rd 2008. The result of this Decision is a potential market opening of 47%

Natural Gas Market Structure

• Public enterprise “Srbijagas” started its operation in October 2005, performing transport, distribution, system operation and trade of natural gas. Srbijagas is also the sole wholesale supplier for tariff customers in Serbia.
• There are 36 licensed distribution companies with different kind of ownership (private and public) responsible for distribution and supply of natural gas in northern part of Serbia
• 11 companies have been issued licenses for natural gas trade (including wholesale, retail, import and export) on the free market in Serbia.
• Initial eligibility threshold set by the Energy Law was 50 million bcm/year (potentially 50% market opening). In 2008 the Council of AERS passed a decision by which all non-household customers could obtain eligibility regardless of annual consumption, and went further than the requirements imposed by the Treaty establishing the Energy Community by giving the possibility to obtain eligibility to households consuming more than 50.000 m³/year. The Decision is applied as of February 23rd 2008. The result of this Decision is a potential market opening 88 %. Some natural gas consumers became eligible and about half of natural gas consumption (46,6%) was sold at non regulated price in 2010.

Electricity

• Price reviews of regulated companies
• Unbundling of distribution and supply activities within electricity distribution companies (in terms of legal form)
• Preparation of Market Rules
• Implementation of feed- in tariffs for RES as of January 01st, 2010.
• Harmonization of primary and secondary legislation in accordance with the Treaty establishing Energy Community

Natural Gas

• Price reviews of regulated companies
• Preparation of Transportation and Distribution Network Codes
• Harmonization of primary and secondary legislation in accordance with the Treaty establishing Energy Community