Serbia: EPS power utility company faces restructuring in management, what about 600 EPS directors?

24. July 2014. / News Serbia Energy

Among the measures for improving the business environment also is resolving problem of EPS management, which makes 600 directors well paid, says Minister Dusan Vujovic.

“Only price increase does not solve the problem. We have a bigger problem inEPSmanagement, which makes 600 directors well paid. To recall the average salary in EPS is 75.000 dinars (640 EUR), which is twice the average wage of workers in Serbia”, said Vujovic, who is the Minister of Economy and Acting Minister of Finance.

He added that the specific problem also were the technical losses of 18 percent and record low fee of 84 percent. “All of these are consequences of bad management, and it cannot compensate the increase in electricity prices”, said the minister.

As he explained, EPS must have electricity prices comparable to prices in neighboring countries and therefore to ensure normal operations, because “we cannot afford to have a 30 percent lower electricity price from the lowest in the region.”

“Mitigation the social consequences of higher electricityprice is implied and how the Government takes it into account through line ministries. If instead of EPS loss the Ministry of Finance obtains payment of dividends, then it is easy to allocate part of these funds for help to vulnerable population who cannot afford the economic electricity price”, he said.

Vujovic said that among the measures for successfully reform course also were the deficit overthrows each year and the salaries and pensions reductions by 10 percent.

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