Montenegro: TSO company CGES business results 2014 successful says Head of Board of Directors

20. January 2015. / SEE Energy News

Montenegrin Transmission System (CGES) records the increase in the revenues on the basis of the transmission network use and rental of cross-border transmission capacity, which results in lower tariffs for consumers in Montenegro, said the president of the Board of Directors of the company, Dragan Laketic.

Laketic said that although they did not have all necessary information, they expected that last year’s operating result be good, maybe even excellent.
“Compared to 2013th we also record revenue growth on the basis of the transmission network and on the basis of renting cross-border transmission capacities, which directly affects the tariffs reduction for use of the transmission network for consumers in Montenegro. We keep costs within the planned values and the condition to resolve some controversial issues in 2013th with our most important partner, the Electric Power Industry (EPCG), we expect a significantly better result than in 2013”, said Laketic.

The realization of the investment plan, as one of the most important business segments, as he said, is in the focus of CGES representatives.
“We succeeded to realize very ambitious investment plan in the extent of nearly 80 percent, thereby making significant savings compared to the approved and contracted projects value. The value of over 20 MEUR of realized investment during last year was very high for clearance companies such as CGES”, announced Laketic.
He added that we made an improvement in this segment compared to 2013th, by which, as he said, has been reaffirmed the investment oriented company and the intention was to invest about 130 MEUR in investment and development projects in the next five years.
“Also, we have devoted a lot of attention to improve business processes and operations efficiency which, in parallel on the process of standardization and implementation of modern technical solutions in different areas of business, should raise the company’s business on a higher level and bring us closer to the European standards”, said Laketic.
He divided barriers in business CGES faced with into those general with which also the other companies faced, and that are caused by the global economic and financial as well as social crisis, and to those that currently exist in the energy sector in Montenegro.

CGES has many claims on the basis of the transmission network of licensed suppliers of EPCG and Montenegro bonus. Also, we have one new situation that the decisions of the Energy Regulatory Agency (RAE), which are being challenged in front the competent courts, are not applied”, said Laketic.

These problems, as he said, seriously endanger the operations of CGES and their resolution cannot be delayed.
“So I hope and believe that all entities responsible for the energy sector functioning in Montenegro will make the effort, each in its own sphere of competence, to resolve the main problems early this year in order not to endanger the operation and development of the power system”, added Laketic.

The main CGES focus this year, added Laketic, should be directed to an urgent normalization of relations between energy entities with the full institutional support.
“It is a prerequisite for all other important activities in the company, some of which exceed the company’s importance and are very important both from the standpoint of the public interest and economic development of Montenegro. First of all I mean on the implementation of the investment plan, and as the most important segment of the project plan for submarine interconnection with Italy”, said Laketic.

When it comes to this project, he recalled that the company managed to sign and activate contracts last year for all three lots which included the construction of transmission plants specified in the Agreement on the project coordination, which was signed by the Italian CGES and Terna.
“Preparation for construction and the construction of such facilities is very complex, so it is not unexpected that during the implementation appear some certain dilemmas that should be seriously considered and, together with the consultant and the contractor should find the best solution in a given situation”, explained Laketic.
He added that contractors who were working on obtaining a basis for the documentation design, planning and preparation for major projects were selected last year.
“This year we expect the approval of major projects and commencement of works on site. Part of the project for which CGES is responsible includes the construction of the substation Lastva, the transmission line that connect the substation to the transmission network, or two transmission lines Lastva- Cevo and transmission line Lastva-Pljevlja. We’ll have to move the site from coast to Pljevlja which is another illustration of the size and complexity of this project”, said Laketic.

He added that in CGES expected that its strategic partner, Terna, began construction on the site of the future converter station in Lastva during this year.
“Also, according to provided information, the activities of Terna in other project segments for which they are responsible are implemented as planned”, said Laketic.

Commenting on the electricity market opening in Montenegro since January 1st, Laketic said that CGES had an obligation to provide access to all interested users or participants in the electricity market, to the transmission network in a transparent and non-discriminatory manner.
“Our transmission network is well developed and very good associated with transmission networks of neighboring countries, by transmission lines of large transmission capacity, which allow unrestricted electricity import or export for the needs of the transmission network users, as well as the smooth electricity transit for purposes of other electric power systems in the whole region and beyond”, said Laketic.

He recalled that CGES together with the Italian transmission system operator implemented a project of the submarine connection of power systems of Italy and Montenegro, and thus the Western Balkans region.
“By this project CGES strongly supports the development of the electricity market in the area of our region as well as the integration of regional markets into the single electricity market in Europe. CGES is one of the initiators of the idea of forming the energy stock exchange in Montenegro. All this should be a powerful incentive revivification of the electricity market in Montenegro to the full extent”, said Laketic.

He said that, looking at the current situation, even some conditions which are not under the responsibility of CGES should be fulfilled, in order that appear new suppliers in the Montenegrin market.
“Certainly, the transmission network is not a barrier to the full functionality of the electricity market in Montenegro”, said Laketic.

CGES, as he said, tries to provide the highest possible availability of the network in accordance with European standards to all consumers connected to the transmission network.
“In this regard, CGES implements a number of investments in the construction of new ones and expansion and reconstruction of existing facilities of the transmission network”, said Laketic.

He singled out the projects that the company plans to complete this year, which are very important for reliable and safe electricity supply to customers, including 110 KV transmission line Tivat – Kotor, 110/10 KV substation Niksic, installation of the second transformer 110/10 KV in substation Mojkovac.

“On the other side, CGES constantly works and thinks in the direction of increasing business efficiency. That is why also this year we plan to work on projects that will improve our information system and enable the implementation of modern technical solutions for the administration and management of the power system”, concluded Laketic.

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