RAE's final decision: Electricity for citizens costs almost as much as for a small economy

Few people expected that the Energy Agency would not find a way to increase the price of electricity, which would cause an impact on the standard of most citizens...
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Elektrodistribucija Crne Gora, Photo: "Vijesti" Archive
Elektrodistribucija Crne Gora, Photo: "Vijesti" Archive
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.
Ažurirano: 09.03.2011. 18:21h

Households will pay 2,7 percent cheaper electricity from April and that price of 7,2 cents is equal to the average for small businesses and service industries, is the final decision of the Energy Regulatory Agency.

The new price for the majority of citizens with two-tariff meters, which will be valid until April of next year, drops slightly and will not significantly relieve electricity bills compared to the current ones.

When value added tax is included, it amounts to 8,4 cents per kilowatt-hour, and VAT is normally calculated on the entire amount of the bill.

Households with single-tariff meters, of which there are about five percent, will see a price reduction of about six percent and will amount to 7,54 cents, excluding VAT.

A surprise from the Energy Agency

Judging by the previous work and the incomplete rules of the Energy Agency, few expected that they would not find a way to increase the price of electricity, which would cause an impact on the standard of the majority of citizens, whose salaries are generally stagnant or do not receive them on time.

RAE announced that, according to the income approved by Elektroprivreda and Elektroprenos to be collected through annual electricity bills, it turns out that electricity will be slightly more expensive for Kombinat aluminum and those consumers connected to ten kilovolts, which includes part of medium and large enterprises of various activities.

For small and medium-sized enterprises, schools, hospitals, bakeries, dairies, cafes and other service activities, the price drops by 19 and 33 percent, depending on the power measurement, it comes to 7,1 and 8,8 cents, which means that the average "collision " with that for most households.

"The average price for all consumers this year has decreased by about 9,8 percent," announced the chairman of the RAE Board, Branko Kotri.

He assessed that the transitional decisions of the regulator were in a way good and said that everyone should deal with what is key to achieving success.

They will demand that the Government return the illegally taken money

"Energy companies should deal with reducing costs, because future prices will depend only on those costs that cannot be influenced, such as importing electricity, buying coal - said Kotri.

The April bills, which arrive for collection by mid-May, will be freed from commercial losses in the distribution networks, through which consumers were unconstitutionally charged for years for "someone's" theft of electricity, errors in the reading of consumption... But RAE did not fully comply with the Constitutional Court's assessment that it should eliminate technical losses from the account, referring to the economic logic and practice that inevitable losses arising from delivery to consumers must be through prices.

Although the RAE and the Government distance themselves from the compensation of consumers due to the illegal collection of losses, with the message that it is difficult to enforce it retroactively, the Union of Free Trade Unions asks the Social Council to force the Government to return the unconstitutionally taken money.

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