MANS sued RAE for increasing the price of electricity

Representatives of MANS, as a group of citizens, filed a lawsuit against the Regulatory Agency for Energy (RAE) to the Administrative Court of Montenegro, requesting the annulment of the last decision on the increase in electricity prices.

At the request of EPCG, in mid-December last year, RAE made a decision to change the regulatory allowed income, based on which electricity for households is 6,8 percent more expensive for two-tariff meters, or 6,5 percent for single-tariff meters.

"We requested the annulment of the decision due to the flat-rate determination of the cost of import and export of electricity for EPCG in the amount of over five and a half million euros, for a period of nine months during 2011. Namely, in the contested decision, RAE did not explain in a single word the basis on which it EPCG approved just such an expense," MANS announced.

"Insight" of 5 and a half hours

They note that EPCG was obliged to submit complete documentation on the basis of which RAE would make a decision, which did not happen in this case.

"Instead of submitting the electricity import contract, EPCG provided RAE with direct access to the documentation."

MANS expects the Constitutional Court to process the lawsuit as soon as possible and to schedule a public hearing on it

"That is insufficient for a high-quality and comprehensive analysis of the contract with accompanying documentation," according to MANS. "From the minutes, it is absolutely impossible to determine whether the electricity was really purchased at the most favorable price, or whether the increase in the price of electricity on that basis is really justified."

They side with Elektroprivreda

According to the Law on Energy, electricity must be procured under the most favorable terms, which enables the most favorable tariffs for end customers.

"One of the examples of how "legal" RAE's decision on the latest price increase is, is certainly the cost approved by EPCG for the difference in the price of energy taken from the company 'Zeta energy'. Namely, RAE approved this cost by referring to the government regulation which entered into force on November 12 last year, which violated the constitutional principle on the prohibition of retroactive effect of laws and regulations, MANS said.

They suspect that the RAE is seriously neglecting its regulatory function, "and that it is increasingly openly serving the profit interests of the new owners of EPCG".

"Keeping in mind that the latest increase in the price of electricity has a hard impact on the budget of the majority of the already impoverished citizens of Montenegro, MANS expects the Constitutional Court to process the lawsuit as soon as possible and schedule a public hearing on it," the announcement states.