Serbia’s SEEPEX to shift to negative electricity pricing from May 2026, with new limits and VAT treatment

Serbia’s push to modernize wholesale power trading is moving into a more technical—and potentially more volatile—phase. From May 2026, the country’s organized market will allow electricity prices to fall below zero on SEEPEX, aligning the exchange closer to how European systems handle oversupply periods.

The planned introduction of sub-zero pricing is designed to strengthen price formation. By permitting negative values during times when generation exceeds demand, the mechanism aims to produce signals that better reflect real market conditions for participants.

A framework built for day-ahead and intraday trading

SEEPEX said the rollout will follow successful completion of technical testing. Once the new rules are in place, they will apply across both key segments of the exchange: the day-ahead market and the intraday segment.

The first day-ahead auction featuring negative pricing is scheduled for 5 May 2026, with delivery set for 6 May. In the intraday continuous market, trades at sub-zero levels for contracts delivering on the same date are expected to start after 23:00 CEST on 5 May.

Price floors change sharply under the new rules

Together with negative pricing, SEEPEX will adjust its clearing price limits. For the day-ahead market, a current minimum clearing price of 0 euros/MWh will be replaced by a floor of -500 euros/MWh. In intraday trading, the lower limit will extend further down to -9,999 euros/MWh, reflecting harmonized standards referenced across the European Union.

VAT treatment clarified for negative-price transactions

The exchange also addressed how taxation would work under Serbian rules. Under Serbian VAT regulations described by SEEPEX, a negative electricity price is treated as payment for a service rather than a standard commodity transaction.

This means that applicable 20% VAT would apply only when domestically registered companies sell electricity at negative prices. Foreign participants, SEEPEX noted, would need to assess their tax position according to their own national regulations.

Clearing members urged to revisit cash limits and risk controls

The operational transition has implications beyond settlement math. SEEPEX advised clearing members and trading participants with active cash limits to review their exposure and adjust financial limits where necessary, citing potential effects on settlement and risk management.

The overall move—announced via Serbia’s organized electricity market—is positioned as another step toward Serbia’s future integration into an EU coupled electricity market structure.