The provisions of the Law on Public Utility Services (“Official Gazette of the RS”, nos. 88/2011, 104/2016, 95/2018, and 94/2024) define public utility services and regulate the general conditions and manner of their performance.
Public utility services, within the meaning of the Law on Public Utility Services (“Official Gazette of the RS”, nos. 88/2011, 104/2016, 95/2018, and 94/2024), are services of public interest provided to meet the essential needs of natural persons and business entities, where the local self-government unit is obliged to ensure appropriate quality, scope, availability, and continuity, as well as to oversee their performance.
According to Article 2, paragraph 3 of the Law on Public Utility Services (“Official Gazette of the RS”, nos. 88/2011, 104/2016, 95/2018, and 94/2024), public utility services are:
- supply of drinking water;
- purification and drainage of storm water and wastewater;
- production, distribution, and supply of thermal energy;
- municipal waste management;
- urban and suburban passenger transport;
- cemetery management and burials;
- funeral services;
- public car park management;
- provision of public lighting;
- market management;
- maintenance of streets and roads;
- cleaning of public areas;
- maintenance of public green spaces;
- chimney sweeping services;
- animal hygiene services.
The assembly of a local self-government unit may, with prior consent from the Ministry responsible for public utility services, designate other activities of local interest as public utility services.
The assembly of a local self-government unit shall, by its decision and with prior consent from the Ministry responsible for public utility services, prescribe the conditions and manner of performing a public utility service it has designated.
Public utility service providers
A public utility service may be performed by a public enterprise, business company, entrepreneur, or other business entity.
The public utility service of supplying drinking water and the service of urban and suburban passenger transport, in the part involving public line transport of passengers by trolleybus and tram, may only be performed by public enterprises established by the local self-government unit, limited liability companies and joint-stock companies wholly owned by such public enterprises or by the local self-government unit, as well as a dependent company wholly owned by such company limited by capital.
Fulfilment of conditions for commencing performance of public utility services
Determining the conditions for commencing performance of public utility services falls within the competence of the Government of the Republic of Serbia, the Ministry of Construction, Transport and Infrastructure, the Ministry of Mining and Energy, and local self-government units.
According to Article 7 of the Law on Ministries (“Official Gazette of the RS”, nos. 128/2020, 116/2022, and 92/2023 – other law), the Ministry of Construction, Transport and Infrastructure performs public administration tasks related, among other things, to public utility services, except for the production, distribution, and supply of thermal energy. According to Article 8 of the Law on Ministries (“Official Gazette of the RS”, nos. 128/2020, 116/2022, and 92/2023 – other law), the Ministry of Mining and Energy is responsible for the production, distribution, and supply of thermal energy.
Unless otherwise regulated, the Minister of Construction, Transport and Infrastructure, who is responsible for public utility services, may further regulate the general conditions for commencing the performance of public utility services referred to in Article 2, paragraph 3 of the Law on Public Utility Services (“Official Gazette of the RS”, nos. 88/2011, 104/2016, 95/2018, and 94/2024), except for the conditions for commencing performance of the activity of production, distribution, and supply of thermal energy.
The local self-government unit, in accordance with the provisions of the Law on Public Utility Services (“Official Gazette of the RS”, nos. 88/2011, 104/2016, 95/2018, and 94/2024):
- regulates the conditions for performing public utility services, the rights and obligations of utility service users, the scope and quality of services, and the manner of supervision of the performance of public utility services;
- provides organisational, material, and other conditions for the construction, maintenance, and functioning of utility facilities and for the technical and technological integrity of the system and organises and ensures the performance and development of public utility services;
- may, by decision in accordance with its statute, stipulate that a city municipality, local community, or other form of local self-government performs certain tasks related to ensuring the conditions for performance of public utility services.
According to the Law on Public Utility Services (“Official Gazette of the RS”, nos. 88/2011, 104/2016, 95/2018, and 94/2024), the Government of the Republic of Serbia is competent for regulating performance criteria for public utility services, including: minimum coverage area or population served; service frequency; service content; indicators of service quality and efficiency; and the content and method of maintaining records of business entities performing specific utility services.
The Government of the Republic of Serbia adopted the Regulation on the Manner and Conditions for Commencing Performance of Public Utility Services (“Official Gazette of the RS”, nos. 13/2018, 66/2018, and 51/2019), which regulates the content, manner, and conditions for commencing performance of public utility services, and specifically defines: professional qualification of personnel and technical capacity required of utility service providers to perform specific services, if not otherwise regulated.
The provisions of the Regulation on the Manner and Conditions for Commencing Performance of Public Utility Services (“Official Gazette of the RS”, nos. 13/2018, 66/2018, and 51/2019), apply to the following public utility services: urban and suburban passenger transport by public line using passenger ship, ferries, and work-purpose vessels; cemetery management and burials; funeral services; public parking management; provision of public lighting; market management; street and road maintenance; cleaning of public areas; maintenance of public green spaces; chimney sweeping services; and animal hygiene services.
Delegation of performance of public utility services
Delegation of the performance of a public utility service refers to a time-limited contractual arrangement regulating the relationship concerning the performance of a public utility service or specific tasks within the scope of such service, between one or more local self-government units and the public utility service provider, to deliver public utility services in the territory of one or more local self-government units or in a part of the territory of a local self-government unit.
Delegation is made based on a decision of the local assembly regarding the manner of performing the utility service and a delegation contract, except when a public enterprise is established.
Exceptionally, the performance of the following utility services is not delegated:
- Funeral services may only be performed by business entities that meet the prescribed requirements. The minister responsible for utility services prescribes the conditions for performing funeral services, the method for verifying compliance, the method for maintaining records of business entities that meet the conditions, as well as other matters relevant to funeral services.
- The activity of collecting hazardous household waste (municipal and similar commercial/industrial waste, including separately collected fractions) within the territory of a local self-government unit is performed in accordance with a permit issued by the Ministry responsible for environmental protection, subject to prior consent from the competent local authority for collecting hazardous household waste. The minister responsible for utility services, together with the minister responsible for environmental protection, further prescribes the appearance and content of the application for consent, as well as the content and format of the consent issued by the local authority.
Obligation to report to the Ministry responsible for public utility services
The utility service provider is obliged to submit, upon request of the Ministry responsible for utility services, data and information concerning the performance of public utility services within 15 days from the day of receiving the request.
Providers of funeral services shall submit a report to the Ministry responsible for utility services, in the prescribed form, regarding the performance of services by the end of February of the current year for the previous year.
The Ministry responsible for public utility services monitors the quality and scope of services, the efficiency of service providers, price trends, number of employees, and investment in maintenance and construction of utility infrastructure and reports its findings to the Government of the Republic of Serbia and the public at least once a year.
Primary activity code
Business entities are required to submit to the Business Entities Register, maintained by the Serbian Business Registers Agency, only the four-digit code of the primary activity and its designation (name of the activity) in accordance with the Law on Classification of Activities (“Official Gazette of the RS”, no. 104/2009) and the accompanying Regulation on Classification of Activities (“Official Gazette of the RS”, no. 54/2010). It is not possible to register the activity using the classification of public utility services listed in Article 2, paragraph 3 of the Law on Public Utility Services (“Official Gazette of the RS”, nos. 88/2011, 104/2016, 95/2018, and 94/2024), due to electronic processing constraints.
However, in the business name of the entity, in accordance with Article 22, paragraph 7 of the Law on Business Companies (“Official Gazette of the RS”, nos. 36/2011, 99/2011, 83/2014 – other law, 5/2015, 44/2018, 95/2018, 91/2019, 109/2021, and 19/2025), the scope of operations may be described more specifically in accordance with the classification of utility services listed in Article 2, paragraph 3 of the Law on Public Utility Services (“Official Gazette of the RS”, nos. 88/2011, 104/2016, 95/2018, and 94/2024).
Last update: 27. 9. 2025.
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