A cold spell enveloping Europe has hit the Balkans region hard, straining its creaking power infrastructure and forcing utilities to import during the coldest weather in decades.

 

Serbia's state-run EPS said it would cut power deliveries to more than 200 industrial users.

 

"EPS has started to apply the government order in an urgent manner," it said in a statement.

 

The utility called the situation "critical" at its largest coal mine Kolubara where temperatures of -30 degrees Celsius caused equipment to freeze and hampered the transport of coal needed to feed power plants.

 

Some 70 percent of the nation's energy is produced in coal-fired plants that have been operating at maximum capacity due to record low water levels that have hammered hydro output.

 

Despite public appeals for people to conserve energy, EPS said consumption had skyrocketed to a record of some 163 GWh daily in Serbia and part of its former province of Kosovo as customers use more heating.

 

"At the same time electricity imports have reached the limit because of a difficult situation across the region and limited cross-border capacities," EPS said.

 

The situation has pushed Balkan power prices significantly higher than in countries in neighbouring central Europe where spot contracts have reached multi-year highs.

 

"Baseload is trading at 120 euros ($160) per megawatt-hour while the peak load is way above that price," said Nenad Savic, spokesman for UK-based trading and investment group Energy Financing Team (EFT).

 

The Serbian government has advised the education ministry to close schools and universities until February 17 and for employers to declare three days off from February 15 to 17 instead of the planned two to mark Statehood Day. Local street lights have also been dimmed to save power.

 

GAS RESERVES

Gas officials said Serbia had enough reserves to meet demand for the next three weeks.

 

"Serbia can draw 15 million cubic metres of gas a day, which is sufficient to meet a maximum daily demand of about 12 million cubic metres," said Dusan Bajatovic, general manager of gas monopoly Srbijagas.

 

Croatia's INA's gas trading company said it has secured enough supplies from Hungary - which has ample storage facilities - to compensate for reduced output in the northern Adriatic.

 

State power utility HEP, which recorded a record high daily consumption of 63,374 MWh this week, said the system was currently stable except for some disruptions in areas in central and southern Croatia most affected by snow.

 

In southern and southeastern Bosnia emergency services were struggling with heavy wind while attempting to repair two 110 KV power lines that collapsed under the weight of snow and ice, leaving more than 15,000 consumers without power for days.

 

Bosnia's top power utility EPBiH earlier this week cut power exports as soaring demand strained coal reserves.

 

"Our coal miners are working in unbearable conditions at freezing temperatures in coal pits. They have problems with transport conveyors and coal simply gets frozen," said Bosnia's Muslim-Croat federation Energy Minister Erdal Trhulj.

 

"Something like this happens once in a century but we are doing our best to keep up the current pace. We have finally managed to clean up the railways and to restore coal supply routes," he said.