Electricity may be up to three percent more expensive next year

The price of electricity could increase by up to three percent from next year, the Energy Regulatory Agency (RAE) said.

The President of the RAE Board, Miroslav Vukčević, said that this matter is being discussed with representatives of energy companies at the session of the RAE Board, which started yesterday, and should be concluded today.

"What we can assume is that there cannot be too many deviations from the current price, the maximum increase can be up to three percent, and maybe that won't happen either," Vukčević told Radio Montenegro.

The Montenegrin Elektroprenosni System (CGES), the Montenegrin Elektrodistributivni System (CEDIS) and the Montenegrin Electricity Market Operator (COTEE) submitted requests to the RAE in early September for determining the regulatory allowed income and prices for the period from 2017 to 2019.

After the RAE determines the allowed income for those companies, Elektroprivreda will prepare new electricity prices, which will be valid from January 1 of the following year.

EPCG previously told "Vijesta" that in accordance with the law and methodologies, they will receive from RAE the final regulatory allowed income of all energy entities.

"After that, in accordance with the obligations, our team will prepare tables with tariffs that will be approved by the regulator with effect from January 2017," EPCG explained.

The law on energy stipulates that after January 1, 2017, the supplier can change prices in accordance with changes in the market and with a limit.

Thus, for end customers, they cannot be increased above the weighted price of electricity realized in the previous year and futures for the following year on the reference energy exchange, up to seven percent in 2017 and six percent in 2018 and 2019.

The Budapest energy exchange, Hungarian Power Exchange (HUPX), was designated as the reference exchange.