Montenegro: A2A & Gov deal, Power utility co EPCG converts the tax debt of 45 MEUR into shares

, SEE Energy News

Shareholders of the EPCG Electric Power Industry has adopted at its regular session a decision on converting the companies tax debt of 45 MEUR into shares. The representatives of the Government and the Italian company A2A votedfor a decision. The representative of minority shareholders Vasilije Milickovic was against it.

After the issuance of EPCG shares based on converting debt into share capital, the state will have 56.9 per cent, A2A 41.7 percent and minority shareholders 1.34 percent of stakes in the power company.

In addition to this, today have been adopted a decision on adoption of financial and consolidated financial statements for 2013th and decision on approval of the company’s operating.

As pointed out at the shareholders’ meeting, with the full engagement of control and managerial structures and all the employees it was realized the business plan and the basic principles of Business Policy, implemented Power Balance and provided regular supply of electricity consumers.

“The end result of the annual financial operating is profit of 25.155.956 EUR, which is 30.939.924 EUR better than the result achieved in 2012th”, said in the EPCG.

As they add, the hydrological situation was very favorable and resulted in a significant increase in hydropower production than it was planned.

“Electricity Production in 2013th was 3809.2 GWh, up by 667.4 GWh or 21.2 percent more than planned, or 1.094GWh or 40.3 percent more than in the previous year”, pointout in EPCG.

Total electricity losses realized on the distribution network in 2013thamounted to 479.6 GWh and in relation to realized losses in 2012th decreased by 61.4 GWh.

“The achieved level of receivablescollection for electricitydelivered in 2013thhas already reached 95.46 percent”, said in EPCG.

As they pointed out, despite the problems caused by the economic crisis and the fall in economic activity, the Electric Power Industry implemented many investment projects last year worth 34.095.868 EUR.

“Due to a number of implemented improvements in the distribution system (new meters), systematically donerepairs and routine maintenance of operational readiness of electric power capacity is held at a high level and there was a high degree of system security and reliability of consumerssupply. In the area ofpersonnel policy, as it was anticipated by business goals for 2013th, an important point is placed on the workforce rationalizing and putting it in an optimal framework. In 2013thworked 2.339 workers In EPCG with indefinite contract, all provisions of the Collective Agreement are properly and timely implemented. The calculation and payment of salaries and other emoluments were carried out mainly within the set deadlines”, it was released from EPCG.

Bearing in mind the delicate economic situation at the local and regional energy market that is characterized by rapid development and changes, the company emphasizes that positive results can be held in the coming years if action and optimization taken in 2013th continue, in order that EPCG could confront to new challenges that await.

“According to Article 42, Paragraph 5 of the Law on Enterprises, the mandate of the members of the Board of Directors will expire at the first regular annual meeting of shareholders. Accordingly, after the removal of the existing ones and voting for the new ones, it was elected the new Board of Directors, in which there has been no change in compared to previous years”,release from EPCG.