Serbia: EPS CEO presents the result of one year reform process, financial stabilization achieved

20. September 2013. / News Serbia Energy

The EPS organizational structure should be complied with the parameters that exist in the similar energy companies, which means that the entire EPS system should undergo serious changes. One year of new management in EPS Serbian Power Utility Company published the information that during one year under the new management the planned loss of 192.982.456 MEUR in the 2013.was reduced on only 7.017.543 MEUR, and less of 438.596.491 MEUR was decreased by375.438.596 MEUR.

With this information the acting director of EPS, Aleksandar Obradovic, stated at the first sight the encouraging news that the electricity price in Serbia would not change for sure by the end of this year. That is, that EPS will not make a request to increase the electricity price for tariff customers by the end of 2013.

Although for the citizens of the already thin household budget this news is encouraging at the first sight, the following data shows that new electric shock is expected after New Year’s, because it is certain that EPS will not give up price increases of its services.

Namely, in order to reach the electricity market price in Serbia, it would be necessary increase of 38 percent. How huge will be the impact on the standard, it is another story.

At the same time, figures that EPS leadership presents, when it comes to the business of that public enterprise, are encouraging. Obligations to the suppliers,  which at the end of 2012.  amounted to almost 217.375.237 MEUR ,by the end of June fell by 73.907.581 MEUR. In the first six months EPS produced 19 billion kilowatt hours of electricity, or 6.4 percent more than in the same period last year, and by the end of the year it is expected even 37 billion, or 0.8 percent more than planned.

There is no doubt that these results are a consequence of the austerity measures taken in all EPS organizational units and increased electricity production.

However, with the figures language cannot be hidden the problems which have been present for years in that public enterprise that was affected by the affair, and the clear responsibility was not known, and consequently the names of those responsible.

Supply and distribution

In such circumstances, is not surprising the resistance to change within the EPS, especially when it comes to the legal obligation of the market opening and unbundling of supply and distribution companies.

Special company for the electricity supply had to be set up last year. The Serbian government ordered last November that to be done, but everything was delayed due to obstructions in the EPS Board of Directors. The decision to form a separate company was filed just in February.

Weaknesses in the work of some of the five electro distributions, which have signed contracts with EPS supply, are a special story. Problems, especially those related to the work organization, were brought to the light in August, when the citizens came in front of the counters. It is sure that the management also has a part of the blame.

The huge problem also is a double electricity bill that people got. To the citizens only remains that Dejan Vasic, director of the EPS supply, complete his promise that in the future will not be so for all consumers, but only for those who have previous debt.

“Neat payers, and they makes 80 percent, will receive only one bill, and the other is a notice on the old debt for customers who did not pay all the debts”, promised Vasic.

These are just some of the EPS problems. People see and feel these problems. Other problems are related to the events within the Serbian giant. Problems are numerous; start with grappling with maturities of short-term loans in the 2013. and in 2014. Besides, the organizational structure should be aligned with the parameters that exist in the similar energy companies, which means that the entire EPS system should undergo serious changes or “electric shock”, as said one of the consumers in front of the counter waiting to pay the bill few days ago.

Source; Serbia Energy/EPS/Medias

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