Montenegro: A2A Power company EPCG will pay 14.4 MEUR to TSO, claims 45MEUR loss from Aluminum company

21. August 2014. / SEE Energy News

Regulatory Agency for Energy (RAE) has adopted a decision on approval of fees and charges paid by electricity generators connected to the transmission system of Montenegrin transmission system. According to the decision, Electric Power Industry, the only licensed electricity producer in Montenegro, will pay 14.4 MEUR to TSO company CGES for use of transmission capacities, until the end of July next year.EPCG is co-owned by Italian A2A.

RAE brought a decision on compensation and cost of EPCG transmission systems late last year, but the decision was reversed by the judgment of the Administrative Court in July this year, because, as stated in the explanation, the clause 26a of the methodology for determining regulatory revenue could not be the legal basis for the adoption of the contested decision. Therefore, the Board of RAE, chaired by Branislav Prelevic, changed the controversial clause of methodology. According to the methodology, CGES sends a request to controller for compensation for use of the transmission system that RAE determines and approves.

According to RAE decision, EPCG will need to pay 6.6 MEUR for use of the transmission system from January 1st to July 31st this year and 7.8 MEUR from August 1st to July 31st of the following year. The transmission capacity engagement by the end of July this year will cost 2.1 EUR per megawatt-hour, while from August until the end of July next year the price will be 2.5 EUR per megawatt-hour.

RAE adopted a decision on approving the fees and charges for use of the transmission system due to less production in the Aluminum plant and Ironworks (Kombinat aluminijuma and Zeljezara). Therefore, these companies distribute less power and therefore the transmission systems are less used.

KAP has been costed EPCG 45 MEUR, which is debt for electricity of aluminum supply company. The government has tried to pay off debt by the revision, but that plan failed. Therefore, EPCG reported the claim of 45 MEUR in the bankruptcy estate, but it will be difficult to collect it because KAP property will be sold for 28 MEUR…

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