The non-governmental organizations Eko-team and Action for Social Justice (ASP), with the support of WWF Adria, submitted today to the Constitutional Court an initiative for the review of the constitutionality of the provisions of the Law on Energy, which refers to the status of temporary privileged producers of electricity from small hydropower plants (MHP).
"The Law on Energy, adopted in 2016, defined for the first time the status of temporary privileged producers, which can last for two years, with the possibility of extension for another year. This status can be achieved by a concessionaire, who has obtained a building permit or other act for the construction of MHP. They are guaranteed the right to incentive measures, which were valid on the date of submission of the application for the acquisition of the status of temporary privileged producer, which puts them in a privileged legal position in relation to the status of privileged producers. In this way, the principle of equality is violated, as one of the basic constitutional principles ", announced from these non-governmental organizations.
The basic incentive measures implemented by electricity producers are subsidies for a period of 12 years, guaranteed purchase of electricity, priority in taking electricity into the energy system.
"It is important to note that in previous years, energy was purchased from privileged producers of electricity from MHP at a price that is 61% to 2,14 times higher than the prices on the international market, directly to the detriment of the citizens of Montenegro, who for this reason have increased bills for electricity. According to data from the website of the Energy Regulatory Agency (RAE), at the moment as many as 17 concessionaires have the status of temporary privileged producers and have the right to build 26 mHP. Some concessionaires were first granted these statuses four years ago, but incomprehensible even in that status," the statement said.
These non-governmental organizations also announce that thanks to the recognition of the right to incentive measures from the time of application, and not from the moment when they meet the necessary conditions, concessionaires in practice were able to obtain loans for the construction of MHP more easily, because they could guarantee the repayment with the income from subsidies.
"WWF Adria, Eko-team and ASP hope that the Constitutional Court will consider the Initiative as soon as possible, especially considering the overall harmfulness of MHP projects that have been shown so far, not only in terms of destroyed rivers, but also huge subsidies to the detriment of consumers. Please note that in 2018, the citizens of Montenegro paid more than 4 million euros to investors in MHP through electricity bills, while the social loss was more than 1,3 million euros. The total damage that will occur to society in the next 10 years, using the existing model of incentives for the production of electricity from MHP, based only on encouraging the current number of producers and MHP, can be estimated at more than 13 million euros", according to WWF Adria.
The signatories of the initiative believe that the Energy Regulatory Agency (RAE) should suspend all decision-making procedures based on the issued statuses of temporary privileged producers, pending the decision of the Constitutional Court, in order to at least temporarily stop further economic damage to Montenegrin society and unforeseeable consequences for the environment.
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