Agreement for Serbian power utility company EPS’s indebtedness is possible soon, EPS will not be privatized

, News Serbia Energy

The question of EPS’s credit indebtedness will be solved soon, Zorana Mihajlovic, Minister of Energy, said and announced that it doesn’t have to mean that EPS will owe half a million EUR. Just because EPS is in hard financial situation, it doesn’t mean that it is going to be sold, Mihajlovic stressed.

When we determine how much money can be provided from company’s reserves, we will able to estimate how much EPS will have to borrow- Mihajlovic said and repeated that is doesn’t mean half a million EUR indebtedness.

She stressed that current administration of EPS had inherited many financial problems is not disputable thing and she repeated that EPS doesn’t need to be sold because of being in difficult financial situation.

“There will be no privatization of EPS and the company won’t serve for political support to political parties or interest groups, that had ruled for the last couple of years and they still do in some part of energy sector, anymore”, Minister said on the conference named “How to launch investments in Serbian energy sector”.

This won’t happen anymore because Serbian citizens deserve developed and efficient EPS, Mihajlovic said.

Acting Managing Director of EPS, Aleksandar Obradovic, said that agreement with Managing Board of the company is expected until the end of week. The subject of the agreement will be how much money that EPS needs can be provided from internal reserves and how much credit indebtedness will amount.

Obradovic emphasized that consumers owe 1,2 billion EUR to EPS currently, and the big part of these debts refer to state-owned companies and indirect budget consumers.

He said that this company needs reforms in order to function steadily and to answer challenges of electricity market liberalization.

The plan for EPS’s investments will be different because of market liberalization- Obradovic said and added that these investments must correspond to reality and to demands of consumers that EPS needs to fight for because it had already lost one big consumer since electricity market had opened.

He announced that EPS will make a new strategy for the company development that will correspond to reality and he stated that EPS needs to invest about 4 billion EUR in maintenance of ongoing production, that value of signed memorandums is 11 to 12 billion EUR and only some of them will be realized.

Source RTS/Serbia Energy