Montenegro: New electricity price increase for wholesale market expected

, SEE Energy News

Electricity price for households will be increased for 6,17% starting from 1 August and it depends from regulator, that supposes to launch analysis of annual incomes from energy companies soon, if this will happen- stated Branislav Prelevic, President of Regulatory Energy Agency Board.

Prelevic reminded that electricity prices are determined by decision for approving tables with prices for three years’ period since 1 August until 31 July 2015 and which was adopted in July 2012.

“According to same decision, electricity price for the period from 1 August 2013 until 31 July 2014 will be increased by 6,17% while the price for period since 1 August 2014 until 31 July 2015 is determined to be 5,69% higher than previous one”, Prelevic said.

He explained that this regulatory year expires on 31 July, stating that regulator is launching the process of energy companies’ annual incomes analysis.

“If we determine that conditions for corrections are accomplished then we’ll publish the amount for change of tariffs by the half of July and these tariffs were previously determined for period from 1 August this year until 31 July next year”, Prelevic said.

Prelevic reminded that Eurostat has recently published analysis of electricity prices from EU countries and candidate states, according to which prices in EU27 have increased by 6,6% in 2012 with reference to the previous year. He stated that price increase by 6% was recorded in 2011 and 2010 also.

He said that electricity price for households in Montenegro with VAT amount 9,5 cents per KWH i.e. it is two times lower than EU27 average which amounted 19,7 cents per KWH in 2012.

Prelevic commented if Montenegro can have electricity price increase like this one in EU which Eurostat reported about and said that projections for future movement of electricity prices on basic level are always ungrateful.

Prelevic explained that regulator got tariffs for all voltage levels and types of consumers in distribution network individually for next three years.

According to his words, regulator does not confirm electricity prices for consumers on transmission network like Aluminum Combine, Zeljezara or Zeljeznica, but only transport price.

“If conditions defined precisely by methodology and rulebook to execute correction of incomes from energy companies are achieved during a year, then regulator will launch a procedure for determining these corrections”, Prelevic explained adding that correction can result with tariffs’ decrease or increase.

According to his words, the goal of corrections is to bring the company on the level planned in the beginning of the year which refers to part of incomes that company couldn’t influence on.

Source; Montenegro Energy Agency/Serbia Energy See desk