Montenegro: The dispute between two energy companies

20. March 2015. / SEE Energy News

From the beginning of the year, Aluminum Plant Podgorica (KAP) consumes electricity received from the Montenegrin electrical transmission system (CGES) for “system’s balancing”. However, it is not known who and whether will pay for the electricity to the supplier “Electric Power Industry”.

According to Montenegrin media, this is the essence of the dispute between two energy companies in Montenegro, which the Energy Regulatory Agency has tried to resolve by ordering them to sign an agreement on regulation of mutual rights and obligations by Wednesday at 16 o’clock, under threat to take away their licenses.

Chairman of the Board of Directors of “Electric Power Industry” (EPCG) Srdjan Kovacevic, accused the “Montenegrin electrical transmission system” for illegally supplying electricity to KAP and thus abusing the authorizations, given that the factory from Podgorica doesn’t have a signed supply contract.

The amount of electricity delivered to “Montenegrin electrical transmission system” as of January 1, is worth around 3.5 million euros, which means that the debt, ending with February, is around 7 million.

The “Montenegrin electrical transmission system”, however, claim that they do not supply the Aluminum Plant.

According to spokesperson of the company, Nada Pavićević, CGES has never supplied electricity to any consumer, because it does’n have its own sources, nor legal possibility to buy and sell electricity. The only activity that the operator is obliged to perform from the day of obtaining the licenses up until now, which is related to the handover of electricity, is the balancing of the system.

The EPCG announced that since January 1 this year “Montenegrin electrical transmission system” claimes electricity from the system, for the stability, and system’s daily disbalance of 84 megawatts is caused by the consumption by Aluminum plant.

The EPCG says that for the purpose of stability of the electric power system and regular servicing of citizens, businesses as well the fuctioning of the company, they are seeking strict definition of the terms and conditions of payment for the consumed electricity that is delivered according to the requirements of the transmission system operator.

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