Republika Srpska, exclusive report: Power utility company business report 2012/2013, decision about state power utility & CEZ arbitrage on autumn

, SEE Energy News

Republika Srpska state energy company Elektroprivreda’s Administration expects the final decision in arbitrage with Czech Electric Power Utility (CEZ) so that official request will be rejected as groundless. Electricity production is 20% higher than it was planned and doubts that business future of this company can be ruined by arbitrage dispute with Czech giant CEZ are rejected in this company. They estimate that charge request of CEZ will be rejected by Arbitrage Court in Vienna as groundless.

“Our estimation according to earlier harmonized time schedule of processing actions in this arbitrage will be rejected as groundless and we need to remind that objection of RS Government for nonexistence of passive legitimacy in the dispute which was accepted by Arbitrage Assembly so RS Government was excepted from further processing. Elektroprivreda RS and Gacko Mine and TPP consider compensation request of CEZ as groundless and it completely rejects it”, it is stated in written answer we got from RS Elektroprivreda.

Elektroprivreda RS expects around 8,6 million marks income

According to the last calculations, Elektroprivreda RS has does positive business with 7.182.000 KM income, regardless to bad hydrological conditions and capital overhaul of TPP Gacko and one of two generators in HPP Dubrovnik. 9 of 12 companies consisted in Elektroprivreda RS have done positive business and three of them showed a loss for 2012.

The biggest income was made by the mine and TPP Ugljevik in amount of 11.948.000 KM achieving the annual production of 1.834 GWH since establishing. The income was made also by HPP Visegrad in amount of 3.959.000 and HPP Bocac 170.000 KM. All electricity distribution companies did a positive business and Elektrodoboj achieved income of 659.000 KM, Elektro-Bijeljina 204.000 KM, Elektrokrajina 113.000 KM, Elektro-Hercegovina 36.000 KM and Elektrodistribucija Pale 15.000 KM. Parent Company made an income of 5.822.000 KM.

Mine and TPP Gacko expressed a business loss in amount of 4.942.00 KM because of capital overhaul during 2012 when the plan was out of operation for 75 days and it didn’t produce electricity of 4.636.000 KM because of extremely bad hydrology in the first quarter of 2012 and overhaul of HPP Dubrovnik’s aggregate which lasted for 7 months instead of planned three months in 2012 and it was even continued for two months in 2013. Overhaul of facilities was done by Croatian Electricity Power Utility. Stated facts present objective circumstances that couldn’t be influenced that conditioned much smaller income achievement with reference to the planned and which expressed negative business result as a consequence. IRCE is the third company that accomplished a loss in amount of 58.000 KM.


Future of the mines and TPPs Ugljevik and Gacko

Workers of mine and TPP Ugljevik are afraid that exploitation of “Ugljevik Istok” pit will cause the lack of coal which Company “Comsar Energy RS” uses as a third phase of TPP construction. However, RS Elektroprivreda is convinced that this investment won’t endanger employees and work of TPP.

“RS Government will take care of mine and TPP Ugljevik. Considering the fact that there are two concessioners in Ugljevik at the moment (Ugljevik and Comsar Energy RS), Ministry of Resources engaged Mining-Geological University from Belgrade to do an expertise about the condition of coal reservoirs on the sites “Bogutovo selo” and “Ugljevik Istok”, in order to do good business and rational use of RS mineral resources. The solution for determination of public interest for coal exploitation concession issuance on the site “Ugljevik Istok 2” was made on the base of expertise considering that sufficient amount of coal for Ugljevik’s work until the end of TPP lifetime was provided”, it is stressed in Elektroprivreda and they added that further analysis by engaged experts were done in order to prolong a lifetime of TPP and to extend sites “Bogutovo selo” and “Ugljevik Istok” with reference to “Ugljevik Istok 2”. Solution changed this way in advantage of mine and TPP Ugljevik for the purpose of provision of sufficient amounts of coal for TPP’s work.

The problem with the landslip in Gacko

Coal exploitation and TPP’s work are normal, despite that landslip of bigger proportions on the south slope of “B” surface pit “Gracanica Gacko” activated and slipping of 3.000.000 cubic meters of mass.

“Activating of the landslip caused water penetration from the rivers Musnica and Gojkovic stream in amount of 65 cubic meters per second. All required resources were engaged right away and all required measures were taken. Water inflow in the pit was prevented successfully and as soon as possible in well organized and coordinated action and it is necessary to underline that there are no human victims” it is added in ERS. All equipment that was endangered with the flood is evacuated, and the equipment on drainage system is destroyed. Recovery plan making is in progress in order to achieve factory production. The possibility of instant accession to replacing the river will be reconsidered after the project completion, ERS reports.

ERS is still having huge losses on distribution networks.

A row of measures during the 2012 decreased losses of Republika Srpska from 16,2% to 15,37%. Achieved distribution losses in 2006 amounted 20,84 % and 16,54% of retrieved electricity during 2010.

Most significant measures that Elektroprivreda RS will continue to use in future perion are intensive control and arrangement of measuring spots, replacing measuring spots in housing interior and installation of measuring devices with remote control.

The signing of contract for electricity supply with electricity consumers has begun recently and it caused opposing opinions among citizens. However, ERS reminds that this contract determines rights and obligations of the buyer and distribution company related to electricity trade. The contract also contains the data about consumer category, payoff elements according to tariff system, the way of payoff and used electricity paying, orders about interests, accessions to connection and measuring spot and other orders about rights and obligations of agreed sides.

“The contract only arranges mutual relations between deliverer and electricity buyer more precisely with defining the clear obligated relation between two sides. From the aspect of distribution corporation, contracts are meaningful for defining the buyers’ base considering that the case of property owner change over object that is not reported is pretty often”, it is explained in ERS. They also remind that conclusion of this contract is obligation prescribed with the article 73 of the Electricity Law in RS and Basic conditions for electricity supply with by-low act adopted by Regulatory Energy Commission in RS.

Source; Serbia Energy SEE desk/ERS/RS Gov/Agencies