Electricity price hike: EPCG says it will not increase its bill item, at least not in the first three months of next year

After the Energy Regulatory Agency (REGAGEN) approved a two percent or around one euro increase in electricity prices for households with average consumption, the Electric Power Company of Montenegro (EPCG) told Television Vijesti that it would not increase its bill, at least not in the first three months of next year. In the meantime, just after it was put into operation after eight months of reconstruction, the Pljevlja Thermal Power Plant has been disconnected from the grid again due to problems that further complicate the situation in the energy system.

Since January, electricity bills have been slightly higher, by two percent or one euro, and the price increase relates to cost adjustments for the transmission system.

This time EPCG will not take on this price increase, which it did this year, through discounts for regular payers.

"In the past, we made decisions precisely to protect the citizens of Montenegro, so that Elektroprivreda would practically bear the burden of a certain part of the price increase that belongs to network operators. I think that will not happen this time," said Acting Director of EPCG Bojan Đordan.

However, the largest part of the bill, 40 percent, is made up of the costs of the Electric Power Company itself for electricity production, and its increase could lead to additional price increases.

"The decision to increase can be made at any time, but I believe that in the first quarter of next year we will not have a price change in the direction of an increase," Đordan pointed out.

The average price of electricity for households has increased by 4,1 percent over the past five years, through cost adjustments for the distribution system. The two percent increase in electricity prices is negligible for the ruling PES.

"An extra euro in the account after all these years, 15 years of inflation and income increases, is not a headline item. Every euro matters, Mr. Marković. Every euro matters when it all adds up in the end," said Dane Marković from PES.

The opposition, however, accuses the government of increasing prices, despite promises that this will not happen.

The URI assumes that additional costs will follow due to poor preparation of the reconstruction of the Pljevlja Thermal Power Plant and expenses for the tax on so-called "dirty" energy. And the Thermal Power Plant, which had just been switched on after eight months of ecological reconstruction, has been disconnected from the network again.

EPCG says that work was suspended due to problems with the functioning of the slag transport system, but that the malfunction will be quickly fixed.

"I hope that we will soon, without bidding, whether it will be in a few hours or in a day or two, I wouldn't guess, until colleagues from the field bring clear information," said Đordan.

The deficiencies must be addressed by a consortium consisting of the Chinese company DEK and its contractors, Bemaks and BB Solar. The environmental reconstruction of the thermal power plant, worth 70 million euros, began in February 2022, so that the plant meets European emission standards and operates without the risk of excessive pollution.