Montenegrin citizens pay the lowest price of electricity based on economic principles, announced the President of the Board of the Regulatory Agency for Energy (RAE), Branislav Prelević, and added that otherwise resources are wasted and damage is done.
"Everyone who has a lower price than us, does not have a price based on economic principles, so they run the risk of irrationally spending resources, destroying their electricity companies and thus doing themselves long-term damage," said Prelević in an interview with Elektroprivreda newspaper.
He added that the price of electricity for households in Montenegro is equal to that in Bulgaria and Moldova, about 30 percent lower than in Croatia, and more than twice lower than the average in the EU.
Prelevic said that he had not heard that anyone from the expert side assessed that electricity in Montenegro is the most expensive in Europe, if the standard and the paying power of customers are taken into account. He believes that electricity tariffs in Montenegro are based on the market and economic principles.
"Through prices based on economic principles, the power system operates stably in the long term, makes a profit, employs people and pays taxes." I claim that this is the only correct approach, because everything else is buying social peace and populism," said Prelevic.
He reminded that this is the approach that is represented in all the developed countries of Europe, as well as that, if Montenegro wants to become part of the EU, it must accept the same rules of the game, not only those that suit it better.
Prelevic announced that a couple of years ago, Eurostat included Montenegro in its half-yearly reports on electricity tariffs, including the paying power of customers.
"According to a new report, from the end of last year, consumers in Montenegro pay a lower price according to the Power Purchasing Standard (PPS) than the average price achieved according to the PPS in Europe," said Prelevic.
He said that the practice of tariff models has long been present in Europe. As soon as there are several suppliers, each of them tries to attract as many customers as possible by giving them various benefits adapted to certain consumer profiles.
"That's why I believe that Elektroprivreda (EPCG), in its role as a supplier, should have offered more tariff models earlier. Whether the tariff models offered are legal, they are, and whether their introduction will achieve the desired goal and whether they will be attractive for customers in Montenegro, only time will tell," said Prelevic.
He stated that experiences from other systems show that it is difficult for customers to decide to change the basic package, as well as that he believes that some consumers can be recognized in the offered tariff packages.
"From the regulator's point of view, it is good that there is a choice, although we believe that EPCG should have started earlier with a media campaign that would make it clear to every buyer of electricity in Montenegro what each package specifically means," said Prelevic.
He reminded that since the entry into force of the current Law on Energy, at the end of January 2016, RAE does not determine the regulatory allowed income of suppliers, nor the prices of energy delivered to end customers.
The law stipulates that electricity prices are freely formed on the market or by contract between the seller and the buyer.
"However, taking into account the fact that there is no liquid market, i.e. that apart from EPCG, there are no other suppliers that are actively operating, due to the protection of customers from the category of small and households, the law in the transitional provisions establishes exceptions for the formation of electricity prices for the aforementioned categories," Prelevic said. .
He announced that Montenegro, as a signatory to the agreement on the establishment of the Energy Community, has been very committed to participating in the work of all the bodies of that institution for the past 14 years and fulfilling the obligations arising from common goals.
"Out of a total of nine members, as many as there are currently in the Energy Community, based on the report of its Secretariat, it can be said that Montenegro is the leader in the matter of transposing legislation, as well as in creating a regulatory-legal framework as a prerequisite for further market development and connection with the regional and the EU market, which is the goal set at the Summit of the Western Balkan countries in Vienna in 2015," said Prelevic.
He reminded that the contract establishing the Energy Community defined the possibility of initiating proceedings against members who do not act in accordance with the decisions of the highest authority - the Ministerial Council.
Prelevic said that in that part as well, compared to the countries that joined the Energy Community in the same period, Montenegro showed that it was the most up-to-date in fulfilling its obligations, because only six cases were initiated against it in the period 2011-2014, and that all rejected.
"For the sake of comparison, the other member countries that acceded when Montenegro, including Montenegro, still have a certain number of open cases on which proceedings are being conducted. "Bosnia and Herzegovina has the largest number of initiated cases so far, followed by Serbia," said Prelevic.
He explained that the idea of creating a single electricity market implied a transition from the concept of closed markets and monopolies in the field of energy to the concept of privatization, liberalization and competitiveness.
"In such circumstances, the market could not be formed by itself, but it was necessary to ensure the liquidity of electricity, harmonize laws, make processes transparent," said Prelevic.
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