Serbia: EPS is prepared for market functioning despite says Obradovic CEO

, News Serbia Energy

Acting General Manager Power Industry of Serbia (EPS) Aleksandar Obradovic said that this company lost six billion euros in revenue as monopolist. According to him, the reason for that was the EPS was supplying customers at a price below the market price.

Obradovic said about the electricity market that the “privilege” of EPS as a monopolist was that it supplied customers who did not pay for electricity.

“Monopoly which EPS has I really do not wish to anyone,” he said, adding that he would immediately give such a monopoly, if any company wants it.

Obradovic said that the market is open for customers at a high voltage since 1 January this year in Serbia, and that by 2014 customers on medium voltage will also come out on the market.

According to him, the EPS has kept 97 percent of the market at a high voltage and increased revenue by 2.5 billion.

Obradovic said that the company will be at a disadvantage compared to the competition on the open market until it is reorganized.

“Whenever we talk about EPS, we talk about monopoly and privileged position, and we have an unequal position compared to competitors until the fulfillment of starting basis for the reorganization of EPS which is adopted by the Serbian Government in November last year,” he said.

According to Obradovic, these changes will mean that this company will have to be centralized in order to become more efficient, faster and more competitive in the market.

He stated that EPS is inefficient due to huge administration giving the example that instead of one in the financial system, there are 13 employees.

In the market one must to be quick, and EPS is not, as a public company it can not be,” said Obradovic, adding that this company has to become a limited company.

Obradovic said that it was a little over a year ago, when he became the head of the company, EPS was in a disastrous financial situation, but the situation was stabilized by reducing costs and turning towards the reorganization, and that they established „EPS supply” without which there would not be possible to have the market opening.

State Secretary at the Ministry of Energy, Dejan Novakovic said that EPS is now one of the healthiest systems that exists in Serbia, even though it has been caught in critical condition in which it was left by the previous government.

Novakovic said that they discuss further improvement and reforms, so EPS will be able to be successful in the market.

Source; Serbia Energy/EPS

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