Serbia: EPS becomes a joint-stock company

, News Serbia Energy

The public company “Elektroprivreda Srbije” made a decision to form an Expert Team for changing the legal form to a joint-stock company, which should complete the transformation of this company that began eight years ago. The announcements about the reform aroused suspicions that it was a prelude to the privatization of the energy giant, but experts estimate that privatization will not happen now – on the one hand for political reasons, and on the other hand, because there would be no buyers interested.

The Ministry of Mining and Energy rejects allegations of privatization and claims that these changes will contribute to better work of EPS. This topic has been talked about since 2014, when the EPS reorganization program was accepted by the Government’s conclusion, which envisages changing the legal form of the company to a joint-stock company. After that, EPS is expected to change its share capital, which will be expressed in shares.

As Željko Marković, an energy expert at the Delloit consulting firm and former director of EPS supply, told Euronews Serbia, the initiated transformation in EPS means that this public company will continue to remain a closed joint-stock company with the sole owner of the shares, the state, and yes, if one days are needed, part of the shares can be offered for sale on the stock exchange.

“With the transition to a new status, EPS will become a closed joint-stock company and will be subject to the Law on Business Companies, the Law on Public Enterprises will no longer apply.
Public enterprises are those enterprises whose activities are of general interest. The production and sale of electricity is energy activity can be prescribed and carried out through the form of a public company, but the ministry defined it as an energy activity”, explains Marković.

Ministry: Serbia will not renounce EPS

The Ministry of Mining and Energy emphasizes that Serbia will not give up EPS, but they emphasize that this change is necessary, because this company no longer meets the requirements to be a public company.