Wholesale Electricity Trading In Slovenia: A Basic Primer To Electricity And Gas Wholesale Trading

1. Wholesale electricity trading

   1. Background information

      The main piece of legislation on electricity supply in Slovenia is the Energy Act (Energetski zakon), which lays out general principles and constitutes the framework for most energy related issues in Slovenia. In addition to the EZ, trade in electricity and supply/delivery in Slovenia is governed, inter alia, by the following regulations:

      Decree on conditions and procedure for issuing and withdrawing of a licence to perform energy activity (Uredba o pogojih in postopku za izdajo ter odvzem licence za opravljanje energetske dejavnosti); Decree on the method for the implementation of public service obligation relating to the organisation of the market of electricity (Uredba o načinu izvajanja gospodarske javne sluzbe organiziranja trga z električno energijo); and Rules governing the functioning of the organised electricity market (Pravila za delovanje organiziranega trga z električno energijo). The NRA is the Energy Agency (Javna Agencija RS za energijo). The Energy Agency has different competences with respect to regulation of the electricity market, including issuing general acts, granting licences, performing monitoring tasks, dispute resolution.

   2. Licensing requirements

      As of 2006 wholesale trading in Slovenia does not need to be licensed. Wholesale electricity (and natural gas) trading is not listed as a business activity that would require a specific licence. On the other hand, the supply to the final customers is a licensed activity.

   3. Trading requirements

      3.1. General aspects

      Wholesale electricity trading in Slovenia may either take place through direct deliveries (OTC) or on the BSP Regional Energy Exchange (BSP).

      3.2. OTC trading

      Apart from joining or forming a balancing group (see sec 3.4. below), there are no specific requirements for OTC trading in electricity. OTC trading is based on freely negotiated prices.

      3.3. Trading on the exchange

      In Slovenia, trading of spot-market products takes place on the BSP.

      Trading on the BSP requires admission as an exchange member or as an affiliate member joining a company group. The registration and admission process as a member of BSP takes one month on average.

      In order to be able to trade on BSP, an admitted BSP member has to settle the balancing obligation on the organized electricity market (see sec 3.4. below).

      For trading on the electricity exchange model agreements provided by BSP must be used.

      3.4. Balancing market

      The Slovenian...