Macedonia privatized its power company, ElektroStopanstvo na Makedonija (ESM), in March 2006 when it sold 90 percent of the company to the Austrian utility firm EVN. The privatization was highly unpopular among Macedonians, who feared high electricity prices.
Those fears came true, as EVN did ask the energy regulator for a 12 to 15 percent increase in electricity prices. In August, the agency announced a 9.54 percent increase. EVN complained that the increase was not high enough and said it would resubmit a request for the increase. Also in August, the company started cutting off power from customers who had not paid their bills. According to local media reports, ESM is owed 40 million in unpaid electricity bills 11 million of which is owed by the government.
Macedonia's energy regulator, the Energy Regulating Commission, was founded in 2003. It currently has two licensed electricity traders, ATEL and ETF. A government report recently concluded that the licensing system was overly complicated.
Macedonia imports electricity, mainly from Bulgaria and especially during the winter. In October, officials said the country was facing an energy crisis because of power shortages and inferior power plants. They warned that blackouts could start this in October 2006.
| NET ELECTRICITY EXPORTER | 1, 176 GWh | | Total Electrical Consumption (2004) | 7,389 GWh | | Total Electrical Production (2004) | 6,213 GWh | | Electrical Consumption per Capita (2002) | 2770.00 kWh/capita | | Average Household Electricity Price (2005) | ¢3.38/kWh (no tax) | | | ¢3.99/kWh (with tax) |