The Montenegrin Electricity Distribution System (CEDIS) has achieved a net profit of 3,21 million euros in the first nine months of this year, compared to a loss of four million euros for the same period last year. Investments in the development and modernization of the distribution network amount to 22,2 million euros, or 4,4 million more than in the same period last year. The implementation of the investment plan is at around 40 percent, as a large number of works is hindered by over 450 initiated property disputes, and municipalities are also late in including planned electricity facilities in urban plans.
The director of the state-owned company told "Vijesti" this. Vladimir Ivanovic.
CEDIS is a company 100% owned by the Electric Power Company of Montenegro (EPCG), and its responsibility is to manage the distribution system from substations and transmission lines with a voltage level of 35 kV to consumers.
The problems that CEDIS faces in implementing its plans include public procurement that takes too long due to frequent complaints, an insufficient number of licensed companies and suppliers with which to work, frequent misunderstanding of municipal authorities regarding the planning of energy facilities, and the fact that illegal connection to the electricity grid is still only a misdemeanor.
"The company's liquidity is at a satisfactory level, which is confirmed by the fact that we have no outstanding liabilities to employees, suppliers, or the state, to which we have paid 21,1 million euros in taxes since the beginning of the year. Compared to the same period in 2024, CEDIS recorded positive trends in profitability, i.e. revenues from engaged distribution capacities - network fees are higher by 9,2 million euros," said Ivanović.
He said that CEDIS continues the trend of reducing network losses, meaning that the loss from the first nine months of last year was reduced from 10,17 percent to 9,73 percent this year, and that in September it was at a historical minimum of 7,23 percent.
In addition to electricity theft and unauthorized connections to the network, which they combat in continuous and special campaigns, a major problem is the frequent damage to underground power cables by various unscrupulous investors who dig without requesting cadastres of underground installations, although they are obliged to do so, or who do not act according to the instructions given.
At the end of September, CEDIS had 1.739 employees, which is 14 fewer than at the end of 2024 and 38 fewer than at the end of 2023.
Hundreds of buildings without substations in the plans
Ivanovic said that cadastres - maps of underground infrastructure - are provided to investors free of charge, in order to avoid accidents and damage, but that there are still investors who do not request them and instead dig on their own.
"A significant problem for the realization of our investments is poor spatial planning documentation, i.e. a significant number of power facilities that need to be built or reconstructed are not included in the spatial planning documentation, the changes to which take a long time. We had the most drastic such problem in Budva, where the plan includes a large number of new residential and business facilities for which building permits are issued, without including the transformer stations and power lines from which they should be supplied. We are now solving this problem with the construction of a new power line from the transformer station in Markovići, and we are on the verge of agreeing on securing another location for the necessary transformer station in Budva. We had a similar problem in Tivat, which we are solving by building a new transformer station and providing backup power. We also have similar problems in Ulcinj," said Ivanović.
He stated that resolving property-legal relations - expropriation, in accordance with legal deadlines, should last up to 232 days, but that in practice it is much longer.
They are asking over a thousand euros per square meter.
Ivanovic pointed out that during expropriation, landowners often make unreasonable demands. For example, one owner from Podgorica is asking for over a thousand euros per square meter to install a transformer station in a suburban area, another is asking for the entire thousand and a half square meters to be purchased instead of a corner of 30 square meters, while a village near Podgorica is protesting about low voltage, while at the same time blocking the expropriation.
"There are quite long and complicated processes that must be carried out in order for an energy facility to be built and put under power, in accordance with the existing Law on Construction of Facilities. The main problem is that infrastructure facilities are not treated as a separate entity in the law, as facilities of general public interest," said Ivanović.
The modernization of the network has reduced both the number of outages (power outages) and the duration of the outages. This year, the average consumer had 11,6 power outages, including both regular and emergency power outages, which lasted a total of 15,4 hours per consumer. In 2019, the average number of outages was 34,3 per consumer, which lasted 54,1 hours.
CEDIS manages 20 thousand kilometers of low-voltage network and 5.280 transformer stations of different voltage levels.
Three major projects worth 105 million
A SCADA project is underway, which envisages network digitalization and remote management, which is worth 35 million euros and is being implemented with a loan from the EBRD. So far, 41 35/10 kV transformer stations have been modernized, and the remaining 23 will be modernized by the end of next year.
The reconstruction of six 35 kV plants and the replacement of equipment at 10/0,4 kV transformer stations located in buildings are also being initiated, with a loan from the French Development Bank worth 35 million euros.
A project to modernize 353 10/0,4 kV transformer stations with the German KfW bank, worth 35 million, has also been launched.
CEDIS has connected its transformer stations with fiber optic cables, so it currently has a network of about 2.400 kilometers of fiber optic cables, which is also starting to be used for commercial purposes.
New digital meters coming soon
CEDIS is entering a new phase of digitalization with the introduction of second-generation (2G) smart meters, with the support of the EBRD, which represents the fulfillment of obligations under EU directives regulating consumer rights, but also enables other services.
"Montenegro was among the first countries in the region to introduce the first generation of smart meters more than a decade ago. This step enabled a significant reduction in technical and non-technical losses, as well as automated data reading. However, they no longer meet the standards that are currently valid in the EU," said the head of the Metering Sector at a press workshop. Vaso Zekovic.
He explained that the new generation of meters not only brings more precise measurement, but also changes the way the consumer participates in the energy system, as they become active market participants, not just passive users of electricity.
The procurement and installation of new smart meters will be carried out through an international tender under the auspices of the EBRD.
"Montenegro is thus becoming part of the European path of digital energy transition, in which every citizen has the right to know, understand and manage their energy consumption," said Zeković.
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