The Montenegrin Electric Transmission System (CGES) requires the Energy Regulatory Agency to grant it approximately 31 million euros to cover costs through one-year electricity prices that will be valid from the summer, "Vijesti" has learned in the company.
The state company Prenos, which is co-owned by the Italian company Terna, wants the income from energy transmission services to be 7,2 million euros higher than the amount approved in 2011.
This means that CGES is submitting a request to the regulator today that the transmission price be higher than the current one by several percent, which should be precisely determined by the RAE. Using the transmission system now costs 1,1 euros per megawatt-hour.
That the regulator intends to raise electricity prices was indirectly announced, when RAE members announced that the prices would be closer to the European market
The current request of Prenos was influenced by the increase in return on investments, which was approved by the rules of the Regulatory Agency. The main investment of CGES is the construction of a transformer station and transmission line from Kotor to Pljevlja, worth over 100 million euros. This is an obligation within the underwater energy cable project between Montenegro and Italy, which is being implemented by Terno.
By mid-July, the Board of the Agency should decide how much CGES costs can burden the accounts, and the percentage of the price change will depend on that amount.
The management of Elektroprivreda, led by the Italian A2A, will today seek regulatory revenue that would cause the second increase in electricity prices this year. In EPCG, "Vijesta" was told that they do not have a "rounded" level of income that they would collect through annual accounts. Based on that figure, one could guess how much price jump they are looking for.
"Not all calculations have been completed, we are harmonizing certain elements," emphasized the Directorate for Tariffs EPCG, announcing that they will submit the request today, which is also the deadline.
New prices from August 1
EPCG's request for income for 2011, which with Prenosov amounted to 376 million euros, shocked the public after RAE calculated that it would raise the price for households by as much as 79 percent. However, companies were then granted a third lower costs, which caused a slight drop in prices for citizens and more significantly for small and medium-sized enterprises.
In addition to the fact that the government does not have social cards for citizens, there are fewer families receiving subsidies than last year when electricity was cheaper
Citizens now pay 7,68 cents per kilowatt-hour of energy, which is 8,98 cents with value added tax.
The new prices are calculated according to the new RAE methodologies and are applied over a three-year period. More precisely - energy companies are approved for expenses that are transferred to the accounts for each of the three years, and can be corrected in case of unforeseen circumstances.
That the regulator intends to raise the price of electricity was indirectly announced, when RAE members announced that the prices would be closer to the European market. It was announced that the price of domestic energy sources will increase.
Opposition members of the Parliamentary Committee on Economy warned RAE that it has the legal ability to prevent price increases due to the difficult economic and social situation in the country.
Montenegro does not have a social environment that can withstand price shocks. In addition to the fact that the government does not have social cards for citizens, there are fewer families receiving subsidies than last year when electricity was cheaper. Protests of dissatisfaction are held precisely because of the poor social situation in which the price of electricity is unbearable.
The administrative court should decide whether the current prices are legal.
Profit 3,8 million
The management of Prenos "Vijesta" announced that last year's profit of the company was 3,8 million euros. The 2011 financial report will soon be audited and released.
CGES did better in 2010 when it was in the surplus of 5,1 million. Last year's result was better than planned, because more income was generated from renting capacity at the border. EPCG will announce its financial results next week, and a loss of around 40 million euros has been announced.
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