Serbia: “Electric Power Industry of Serbia” denies the allegations of the Anti-Corruption Council on the sale of electricity

30. April 2014. / News Serbia Energy

“Electric Power Industry of Serbia” denies the allegations of the Anti-Corruption Council on the sale of electricity. The data which the Anti-Corruption Council has obtained from”Electric Power Industry of Serbia” are absolutely correct, we claim that and after subsequently conducted verification of these information.

“Electric Power Industry of Serbia” since 2010 to 2012 was obliged to supply all customers in Serbia with electricity and to deliver electricity under long-term contracts (with EPI of Montenegro). Energy consumption in Serbia is significantly higher during the heating season and goes beyond production capacities of power plants of EPS. Then EPS has to buy energy. Out of the heating season, the production capacities has a surplus in relation with consumption, so that the electricity must be selling in the market or the water is overflowing at hydroelectric plants.

The price of electricity is forming on the basis of market supply and demand, but the price is much higher during the heating season than out of the heating season.

Because of these circumstances,  EPS is in the position to have to buy electricity when energy is more expensive in the market, and to sell it when it is cheaper.

EPS was buying electricity in the market in accordance with the Law on Public Procurement, which was confirmed during the inspection of the State Audit Institution for 2011 and 2012. Applying the Law on Public Procurement, the only criterion for selection of bidders was the minimum price of electricity when EPS was purchasing electricity.

The position that EPS has recorded decreased income of 30 million euros approximately, due to the difference in price is not relevant or accurate, because the difference in price was not achieved in purchasing and selling in the same market periods.

The position regarding the difference in price which EPS was trading with, which enabled to the licensed traders revenue of 49,436,019.80 euros is not accurate, because the difference in price is enabled by market, not by EPS, or the fact that traders were selling electricity to EPS when it had deficits and when the price was higher; they were buying from EPS electricity once EPS had surplus while the market price was lower.

The financial loss for the period since 2010 to 2012, according to EPS, it is made due to the fact that the producing EPS sector can’t meet the needs for electricity in Serbia during the heating season, but not because of business decisions regarding buying and selling energy.

The differences in the data on the quantities of electricity in paragraphs 4th  and 6th  from the Press Release of of the Anti-Corruption Council regarding  the Report on the trade of electricity are results of  the incorrect interpretation of the data from the tables which has submitted by EPS, TSO of Serbia and the Customs Administration, because these data from the tables do not refer to the same terms. That is why the data on imports and exports are entirely different. By direct comparison of these numbers is not possible to do an accurate analysis and because of that the report of the Anti-corruption Council is not correct.

EPS indicates that the statement of the Council regarding the data of EPS and TSO of Serbia which are different, is consequence of the TSO’s data which contain, in addition to data on cross-border imports and exports, as well the data on the quantities that EPS imported and exported under Long-term Contracts on the ground of business- technical cooperation with the Electric Power Industry of Montenegro and the Republic of Srpska, which have non-commercial, but a technical character.

Source; Serbia Energy

 

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