Montenegro: Energy regulator considers electricity price increase from August

Published on 17. June 2014., SEE Energy News

The Energy Regulatory Agency RAE has initiated the process of determining the correction of regulatory allowed income, prices and tariffs of energy undertakings, based on which will be known how much will increase the electricity from August 1st.

We recall that in July 2012thRAE brought finally allowed revenues for the three-year period to the Electric Power Industry EPCG, Montenegrin transmission system CGES and Montenegrin electricity market operator (COTEE), respectively for each year.

According to these income the price of electricity has been determined from August 1st 2012th by July 31st of the next year.

RAE has launched a process that should determine whether exist conditions for the correction of the regulatory allowed revenues and costs incurred in the second regulatory year, which began on August 1st and last until the end of July this year, according to MINA- business.

Regulator may, on its own or on the energy companies’initiative, after analysis of their annual incomes, start the procedure of determining the corrections of regulatory allowed revenues, which could lead to an increase or decrease of the pre-defined electricityprice.

At the end of 2011thRAE adopted a new methodology, by which the electricityprice will be applied to the period of three years. Then it was announced that electricity prices will rise because of the approaching European market.
The electricityprice for households with dual-tariff meters, according to initial projections, should grow 6.17 percentfrom August 1stlast year, but, after the published correction, was 2.38 percent more expensive.

According to initial estimates, electricity for households with dual-tariff meters shall be increased 5.69 percentfrom August this year, but after published correction the exact percentage of increasein price will be determined.

Electricity for households with dual-tariff meters in the first regulatory year, which lasted from August 1st 2012th until the end of July last year, was 5.86 per cent more expensive.