MANS: Electricity is collected according to the methodology examined by the Constitutional Court

"The Energy Regulatory Agency (RAE) has approved a new electricity price increase of five percent, based on methodologies whose legality has yet to be declared by the Constitutional Court", announced the Network for the Affirmation of the Non-Governmental Sector.

MANS submitted an initiative to the Constitutional Court to overturn RAE's methodology at the beginning of April, "because the regulator, on its own initiative and contrary to the Law on Energy, but also to the Law on Consumer Protection, predicted that we additionally pay for the investments of energy companies".

As claimed by MANS, the rate of return on capital is already calculated for citizens through their electricity bill, but RAE introduced a new item based on the methodologies adopted at the end of last year, which calculates the return on invested capital.

"Such a decision is in accordance with the requirements of energy companies that announce numerous investment projects in the future and essentially means that citizens will pay for the same thing twice," MANS said.

Government: It will be cheaper than in 2009

On the occasion of the announced increase in the price of electricity from August 1, the Government announced that electricity will not exceed the price from 2009.

According to the final allowed revenues for the three-year period determined by the Regulatory Agency for Energy (RAE), electricity could increase in price by about five percent from August 1, the Mina-business agency has learned.

More expensive electricity leads to an even worse position of citizens >>>

"The price of electricity is a market category, and its level is under the exclusive jurisdiction of the Energy Regulatory Agency. This practice is in force in the countries of the European Union and other developed countries precisely to prevent the executive power from dictating socially acceptable electricity prices, for the sake of its own preservation in power," the Government announced.

"According to preliminary estimates, the new electricity prices will not mean a blow to the economy, and they cannot be a justification for a possible increase in the price of products," the Government claims.

What is important for the Government in the situation of a new increase in the price of electricity is social stability.

The government, which is one of the shareholders of EPCG, announced that it has agreed with this company that the existing discount of 5 percent for regular payers will be increased to 10 percent starting next month.

"According to the government's policy in the area of ​​protection of vulnerable categories of the population, in 2012, more precisely, from June 1, the number of subsidized electricity users will increase from the current 13.700 to around 27.000. Subsidization covers the monthly consumption of these consumers in the range of up to 60 euros, and each the bill for consumed electrical energy, which amounts to more than 60 euros, will be reduced by 24 euros," the Government announced.

"According to preliminary estimates, the new electricity prices will also not mean a blow to the economy, and they cannot be a justification for a possible increase in the price of products because the new price of electricity for small and medium-sized enterprises will still be about 30 percent lower compared to the one in 2009. ", claim the Government.

By signing the Agreement on the Formation of the Energy Community and its ratification by the Parliament of Montenegro, as a member of the Energy Community, Montenegro undertook the obligation to comply with EU directives related to energy and environmental protection.

"This Agreement is the first legally binding document towards the European Union, so in that context, Montenegro has undertaken a series of reform activities in this sector so far," the Government announced, among other things.

The new electricity prices will be valid until July 2013.

At its session, the RAE Board determined the final revenues of Elektroprivreda (EPCG), the Montenegrin Electric Transmission System (CGES) and the Montenegrin Electricity Market Operator (COTEE), according to which electricity prices will be determined from August 1.

The RAE will deliver the decision within five days to the applicants, as well as to the Public Supplier, who is obliged to submit a proposal of price tables for the three-year regulatory period, which the regulator needs to approve by July 15.

Prices effective August 1st will be valid until the end of July 2013.

At the session, the board considered the documentation and remarks of the energy entities regarding the approval of the permitted income.

On March 30, EPCG and CGES submitted to the regulator requests for the approval of regulatory permitted income, based on which the prices that will be valid from August 1 will be formed

"Regulatory allowed revenue for determining prices for the use of the transmission system for customers connected to the distribution system that will be supplied at regulated tariffs for the period from August 1 to July 31, 2012 was approved in the amount of almost 23,63 million euros" , RAE said.

The approved regulatory permitted income for the first year of the regulatory period is 25,66 percent lower than required for customers directly connected to the transmission system, and 27,36 percent lower for those connected to the distribution system.

Regulatory allowed income and prices for the second year of the regulatory period is 27,24 million euros, which is 22,31 percent less than required.

The allowed income and prices for the third year of the regulatory period is EUR 30,84 million and is 19,8 percent less than the required amount.

EPCG and CGES prepared the requests in accordance with the new RAE methodologies, adopted at the end of 2011, according to which electricity prices will be applied for a period of three years

For the second year of the regulatory period, income was approved in the amount of 75,11 million euros, 18,21 percent less than requested, and for the third year 79,27 million euros, or 16,86 percent less than requested.

RAE determined the income of 1 million euros to the Public Supplier for the first regulatory year from August 7,07 to the end of December this year, which is paid by customers directly connected to the transmission system.

The regulatory allowed income for the first year of the regulatory period from August 1 to July 31, 2012, which is paid by customers connected to the distribution system, is determined in the amount of 6,95 million euros.

"The approved regulatory allowed income for the first year of the regulatory period is 25,23 percent lower than the required one for customers directly connected to the transmission system, while it is 26,5 percent lower for those connected to the distribution system," specified RAE.

The regulatory allowed income for the second year of the regulatory period was determined in the amount of 7,7 million euros and is 15,36 percent less than the required amount.

For the third year of the regulatory period, the income was determined in the amount of 7,8 million euros, which is 15,12 percent lower than required.

On March 30, EPCG and CGES submitted to the regulator requests for the approval of regulatory permitted income, based on which the prices that will be valid from August 1 will be formed.

The regulator then estimated that, if both requests were accepted in the requested amounts, the price of electricity would rise by 25 percent.

Representatives of RAE previously announced that electricity prices, due to the approach to the European market, will most likely increase from August.

EPCG and CGES prepared the requests in accordance with the new RAE methodologies, adopted at the end of 2011, according to which electricity prices will be applied for a period of three years.

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