The draft of the new Energy Law more precisely defines the forms of unauthorized consumption (theft) of electricity and arbitrary connection of a facility to the electricity grid, as well as methods of compensation for damage and penalties for perpetrators, which should enable the Montenegrin Electricity Distribution System (CEDIS) to more easily combat this phenomenon and reduce the damage suffered by electricity companies due to electricity theft.
Until now, the problem was that the arbitrary connection of an illegal consumer to the electricity distribution system could not be adequately sanctioned, because the prosecutor's office's position was that such an action did not constitute a criminal act of arbitrariness or any other criminal act. CEDIS previously warned that under the current law it was difficult to prove electricity theft and unauthorized connection, as well as to recover damages caused to them, because their reports were rejected even in misdemeanor proceedings.
In preparing the draft law, the Ministry of Energy accepted some of the comments submitted by CEDIS.
The new proposal states that unauthorized use of electricity, gas and heat is prohibited, i.e. that the unauthorized connection of a facility, device or installation to a transmission or distribution system is prohibited, that the use of energy without or without metering devices or unauthorized interventions that enable the use of energy without or without a metering device is prohibited, that unauthorized interventions on metering devices that prevent proper registration of consumed energy are prohibited, that arbitrary connection after the suspension of the supply of electricity, gas or heat due to unauthorized consumption or non-payment of bills for consumed energy is prohibited...
The person in whose favor this violation was committed would compensate the energy companies for the damage according to the new methodology for calculating unauthorized electricity consumption, and would also pay the misdemeanor fines.
According to this proposal, if a natural person commits any of these violations, he or she will be fined 300 to 2.000 euros, as will the responsible person in a legal entity if the violation was committed for the benefit of a company or other legal entity. For an entrepreneur, the fine is from 1.500 to six thousand euros, and for a legal entity, from three to 20 thousand euros.
This part of the law was added during the public debate at the suggestion of CEDIS.
"The aforementioned article of the Energy Law specifies that the arbitrary connection of a facility, device or installation to the electricity distribution system is defined as unauthorized use of electricity. However, CEDIS, so far, as the distribution system operator, has not had the opportunity to achieve adequate criminal or misdemeanor protection of the rights and interests of the entire energy system of Montenegro. CEDIS, as the distribution system operator, aims to introduce all activities on the distribution network into legal frameworks, thereby protecting the rights of users. However, the criminal charges filed so far, according to the Criminal Code of Montenegro (Article 247 - Seizure of another's property and Article 384 - Autocratic rule), were dismissed, because the prosecution and courts consider that the specific cases do not constitute criminal offenses. Also, requests to initiate misdemeanor proceedings have been dismissed or suspended, because the misdemeanor courts assess that there is no misdemeanor liability under the applicable laws," CEDIS explained to the "Vijesti" newspaper about the draft of the new law.
By introducing this provision into the Energy Law, as they stated, CEDIS gains the ability to more efficiently sanction arbitrary connections.
"This will contribute to greater legal certainty in the energy sector, preserving the security and quality of electricity supply, protecting the rights of users who are legally connected and meet their obligations, and maintaining the stability of the energy system of Montenegro. Also, this amendment represents a significant step towards improving the legal framework in the energy sector and allows CEDIS to more efficiently resolve the problem of illegal connections to the distribution system," the company told "Vijesti".
Theft of 17 million kilowatt hours discovered last year
Last year, CEDIS teams discovered the theft of over 17 million kilowatt hours (kWh) of electricity, worth around 1,8 million euros at final prices.
Through so-called unauthorized consumption outside of metering points, consumption in 2024 of 2.218.124 kWh was determined and subsequently billed to these consumers.
"Also, the problem with illegal - illegal construction (arbitrarily connected users) is one of the problems that have their share in unauthorized electricity. During 2024, 15.151.296 kWh of unauthorized electricity - arbitrarily connected - was calculated. Despite this, CEDIS managed to reduce network losses compared to the previous year. Now the total losses amount to 10,51%," the company announced.
As they said, they will continue to detect and reduce unauthorized consumption this year, through regular user inspections, as well as the relocation of metering points.
"Thus, during 2024, 52.684 users were inspected and 1614 metering points were relocated. CEDIS continuously invests in system reliability and better control of electricity delivery and consumption, so at the end of 2023, the Project for the Expansion of Phase III of the Relocation of Metering Points was completed, within which 16.200 metering points were relocated, and the plan is to begin the implementation of Phase IV of the Project this year, which will further contribute to reducing losses on the network," CEDIS stated.
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