Recommendation of the Government: EPCG to contract special terms of trade for procurement of losses on the network

The government recommended to the Board of Directors of the Electric Industry (EPCG) that for the period from January 1 to February 28, it should contract special terms of trade for the procurement of losses on the network of the Montenegrin Electric Distribution System (CEDIS), at the level of the regulatory approved price using the book approval method.

On Tuesday, at a telephone session, the government adopted the Information on losses in the electricity distribution system for January and February of this year.

"In order to overcome the current situation in CEDIS and in order not to have consequences in the form of jeopardizing the normal functioning and work of the sole operator of the distribution system and orderly and reliable supply of electricity to citizens and the economy, it is recommended that the Board of Directors of EPCG, in accordance with the Law on energy, for the period from January 1 to February 28, contracts special terms of trade for the procurement of losses on the network to CEDIS at the level of the regulatory approved price by the method of book approval," the Information states.

As explained, since there were losses in the electric distribution system, there was also an extremely large additional cost of CEDIS based on the procurement of energy to cover losses in the distribution system for 2021 and last year.

"The stated level of additional electricity procurement costs to cover losses calls into question the liquidity of CEDIS and the possibility of performing the public service prescribed by the Law on Energy", the Information states.

It is added that the trend of extremely high energy prices, which continued this year, in addition to the already existing financial losses, will cause additional costs to CEDIS based on the procurement of energy to cover the loss for this year, which drastically calls into question the continued smooth functioning of the operator. distribution system.

"In order to remediate the aforementioned negative effects of the CEDIS crisis, we point out that Article 213 of the Law on Energy, among other things, stipulates that in the event of market disruption caused by an unexpected lack of energy, an extreme rise in electricity prices on the market, an immediate threat to the independence and integrity of the state, natural natural disasters and technological disasters, the Government can introduce special measures," the Information specifies.

The aforementioned provision, as explained, enables CEDIS to procure the necessary amount of energy to cover losses at special prices, which would reduce the negative effects on that basis for this year.

In the framework of personnel issues, the Government passed a decision on the dismissal of the members of the Board of Directors of the Ski Resort of Montenegro, Zorica Vojinović, Ivan Ašanina and Ljiljana Đukić.

"In addition, a decision was made on the appointment of new members, namely Anja Vukićević, Milena Vlahović and Ivan Radević," concludes the Government announcement.