Serbia’s organized electricity market is set to enter a new phase in May 2026, when negative electricity prices will be introduced on SEEPEX as part of a broader effort to modernize trading rules and bring the country closer to European market standards.
The introduction of sub-zero pricing is expected to improve price formation by allowing electricity values to drop below zero during periods of oversupply, creating more accurate and realistic signals for market participants. It also represents an important step toward Serbia’s future integration into the EU coupled electricity market. The implementation will depend on the successful completion of technical testing, after which the new pricing framework will apply to both the day-ahead and intraday segments of the exchange.
On the day-ahead market, the first auction featuring negative pricing is scheduled for 5 May 2026, with electricity delivery planned for 6 May. On the intraday continuous market, trading at sub-zero prices for contracts with delivery on the same date will begin after 23:00 CEST on 5 May.
The introduction of negative prices will also bring changes to SEEPEX price limits. The current minimum clearing price of 0 euros/MWh will be replaced with a floor of -500 euros/MWh on the day-ahead market. For the intraday market, the lower limit will extend to -9,999 euros/MWh, aligning with harmonized standards across the European Union.
SEEPEX also clarified the tax implications of the new system. Under Serbian VAT regulations, a negative electricity price is treated as a payment for a service rather than a standard commodity transaction. As a result, the applicable 20% VAT will apply only to domestically registered companies selling electricity at negative prices. Foreign participants will need to determine the tax treatment based on their own national regulations.
In preparation for the change, SEEPEX has advised clearing members and trading participants with active cash limits to review their exposure and adjust financial limits where necessary, given the potential impact of negative pricing on settlement and risk management.