EPS CEO Obradovic explains the financial impact of DSO companies action toward debtors for electricity bills

22. May 2013. / News Serbia Energy

“Elektrodistribucija Srbije” does not turn electricity off to consumers selectively i.e. there are no protected ones”, Acting Managing Director of EPS, Aleksandar Obradovic, stated.

“The process is pretty clear- we will start with biggest debtors and end with the smallest. We will follow articles in media and we’ll control if the process of turnoff is respected in all distributions. If it isn’t, directors of these distributions will suffer the consequences”, Obradovic said.

He reminded that some information that EPS turns off electricity to consumers selectively has occurred in media recently.

Control was launched in EPS in order to investigate if there were some cases- Obradovic explains and adds that rough insight in the situation can happen today.

Obradovic stresses that there are big differences according to the size of debt. Some distributions have 25.000 dinars’ debt and other many times bigger one.

“If distribution turn its biggest debtor off, the one with 25.000, Director if this distribution does a good business, but neither he nor EPS are guilty for much bigger debtor is not turned off in other distribution. One of the reasons for coordination in turnoff on terrain is not functioning is because it is related to the system of EPS’s administration”, Obradovic adds.

Distribution companies are relatively independent in administration and therefore Serbian Government adopted beginning grounds for EPS’s reorganization in order to improve the whole administration system within corporatization would guarantee unity of procedures.

“EPS and Serbian Government gave to households and industry a chance through action in order to manage some agreement to ease payout of debts within last years’ interests write-off. This reprogram has covered 8 billion dinars and we have written off 1,5 billion of interests”, Obradovic says.

“Around 115.000 owners of almost 600.000 have concluded an agreement with EPS. Elektrosrbija has signed an agreement in height of 65% of debt’s value while Jugoistok signed memorandums in height of only 7%”, Obradovic illustrated.

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