Last week, a situation where the whole of Cetinje was left without water was avoided due to the validity of the first judgment for electricity debt dating back to 2014 of 317 thousand euros, out of 8,4 million euros, which is the total electricity debt of Cetinje Vodovod to Elektroprivreda.
A ruling on the forced collection of this first part of the debt, which was filed by the former management of EPCG in 2016, would mean the blocking of the accounts of Vodovod Cetinje, which is already operating with large losses, as well as the disconnection of its pumps from the electricity network.
As "Vijesta" was informed by EPCG after several meetings and addresses of the Capital of Cetinje to the Government, the Ministry of Finance informed the management of EPCG last week that, by recalculating part of the money allocated to the capital, the claim under this judgment will be paid.
This judgment, which refers to the electricity debt of the Cetinje Waterworks from 2014 and 2015, was passed by the Commercial Court in January of last year, but after the appeal and the final decision of the Court of Appeal, it has only now become final. However, two more proceedings for debts of 1,7 and 3,1 million euros are in progress before the Commercial Court, which relate to debts from 2015 to 2019, and which were suspended until the finalization of this first verdict.
As it is about the same legal and factual basis, the judgment for this total debt of almost five million euros may soon become final. If these debts also fall on the capital of Cetinje, as the founder of its Waterworks, this could mean its blockade.
When asked by "Vijesti" whether they initiated negotiations with the management of this company in connection with solving the problem, EPCG said that it was at the initiative of a member of the EPCG Board of Directors Rajko Radusinović, who lives in Cetinje, at the beginning of August a meeting was held between EPCG management, representatives of Vodovod and the Capital of Cetinje in order to consider an effective way of solving this chronic problem.
"Because of the extremely unconstructive attitude of the deputy mayor Miloš Ražnatović, the meeting did not result in a concrete agreement that would solve the debt repayment problem in the long term. Nevertheless, the management of EPCG, on that occasion, came out to meet the requests of representatives of the Waterworks, postponing the deadline for the implementation of the forced collection procedure according to the final and enforceable judgment P. no. 1152/16 for debt collection in the amount of 317.004,95 euros. In this sense, the representative of the capital was sent to the relevant Ministry of Finance and Social Welfare, which last week informed the management of EPCG that, by redirecting part of the funds allocated to the capital, the claim according to the said judgment will be paid", informed "Vijesta" from EPCG.
The problems with electricity debts of the Cetinje Waterworks have been going on practically since its foundation, and have not been solved for decades. In previous years, the problem was "solved" by forgiving the debt or by the Government offsetting it with EPCG.
Cetnje is supplied from the source in Podgore, from where the water crosses over 700 meters above sea level to reach consumers, which requires very powerful pumps that consume a large amount of electricity.
According to a letter from 2013, the then mayor of Cetinje Aleksandar Bogdanović asks the Minister of Agriculture, Forestry and Water Management Petar Ivanovic help because EPCG then announced the disconnection of Vodovod from the network due to a debt of 1,4 million euros.
Bogdanović then states that if EPCG implements a coercive measure, Cetinje and its citizens will be left without water, which is why he asks Ivanović to "as in previous years initiate the procedure in which the Government will assume the debt" of Vodovod to EPCG.
"I hope that you will understand our request and that you will support us to solve the issue of water supply in Cetinje in a long-term and sustainable way through the implementation of already started capital projects", stated Bogdanović in a letter to Ivanović.
Even after eight years, the local and state authorities have not implemented those capital investments that would solve the problem in the long term. Bogdanović also states that water losses amount to 80 percent, that is, that only 20 percent of the water that is brought to Cetinje at an expensive price and with a large consumption of electricity reaches consumers.
They haven't paid a single euro for two years, they owe six times more than all other water utilities
As of yesterday, the debt of Vodovod Cetinje for electricity amounts to 8.445.129,41 euros.
"In the period from December 31, 12, when the debt amounted to EUR 2019, until September 5.888.206,33, 8, a debt in the amount of EUR 9 was accumulated, without any payments from the other side," they stated from EPCG.
All water supply companies in Montenegro owe EUR 9,9 million for electricity, of which the Cetinje water supply accounts for EUR 8,44 million, or 85 percent of the debt of all water supply companies according to EPCG.
"The debts of other water utilities amount to 1.482.451,13 euros, none of which are as critical as the subject. We have already signed debt settlement protocols with some municipal water utilities, and we are in negotiations to sign them with the remaining ones", EPCG stated.
Total income as much as the electricity bill
According to the financial report for last year, Cetinje Vodovod made a loss of 1,3 million euros last year, while the total losses amount to 14,6 million euros. The capital of this municipal company is negative and amounts to minus 4,8 million euros, i.e. by that much the company's debts exceed its value.
Three days ago, "Vijesti" sent a question to the management of Vodovod about this problem and they are expecting an answer.
In the notes to the financial report for last year, the director Petar Martinovic states that the biggest problem in the business of the company is debt for consumed electricity, which has reached the maximum amount of debt compared to all previous years.
"The total revenue achieved in 2020 was 1,4 million euros, while the cost of electricity used in 2020 was 1,3 million euros. Therefore, society should direct almost all of its income to pay for the consumed electricity. If the settlement of debts for consumed electricity is not started, the question of the business and functioning of the company in general is raised, especially if you take into account the court cases initiated by Elektroprivreda, which may have consequences of irregular water supply and waste water removal," said Martinović. .
Last year, the water supply company charged consumers one million euros for the water used, with a collection rate of 77 percent, while other revenues and donations amounted to about 400. According to the data from the report, Vodovod has unpaid claims of 3,2 million euros.
The Cetinje Waterworks employs a total of 79 workers, of which 38 work in the legal and financial sector, 31 in the technical sector, five in the NRW service, three in the director's office and two in the design and development service
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