Serbia: Power utility company uses consultancy services for company development strategy and power market preparations

9. July 2013. / News Serbia Energy

Despite the previously announced company’s loss of 20 million euros, Serbian power utility company hired eight consulting firms, for whose services the company will pay 10 million euros. Services will cover definition of corporate and investment strategy and improvement of business efficiency and productivity, mining development strategy, preparation of DSO unbundling and preparation for power market liberalization.

“Electric Power Industry of Serbia” (EPS), has announced the eight tenders for hiring consultants with budget of ten million euros,  reveals Kurir.

Projects

The power energy state company, as stated in the report of EPS about carrying out tender for consultants, seeks advices on how to prepare a tender for choosing a strategic partner for the modernization and expansion of TE -TO Novi Sad. Tender is, anyway, announced in beginning of 2010. year,  and one consultant has already been hired, but now they are looking for “additional consultant services.”

EPS intends to spend about three million euros on consultants who will support the team for the implementation of the project “Improving the environment in PC EPS and MB “Kolubara” and twice more for two special jobs – definition of corporate and investment strategy and improvement of business efficiency and productivity.

– Why do we need all of the directors?! Advices of foreign consultants are necessary but not for something that we can do by ourselves. As we do not have thousands of top experts from all fields – says interlocutor to “Kurir“ from EPS, who wanted to remain anonymous.

If they have ever been necessary, some jobs could have been consolidated. For example, advices on the separation of the distribution system operator and public supplier (PBS) and advices on the creation and the work beginning of PBS and strengthening  the function of administration for  development and improvement of business systems within the EPS. Otherwise, the public supplier is created, and that is the company “EPS Supply.”

Justified external assistance or not

Milojko Arsić, professor at the Faculty of Economics, says for “Kurir“ that it must be examined whether it is justified to spend so much money on advisers, especially if it is known that EPS has losses and that the saving in the public sector is necessary. He states that EPS had to explain whether their engineers could work off those jobs.

– The answer also should give the Management and Supervisory Board of EPS because the citizens of Serbia pay them to consider how to dispose of their property and money     – he adds.

Advisers required

All recognized energy companies use consultants. In Serbia, the 1st January has been liberalized market and EPS has to change strategy and adapt all investment plans worth more than six billion euros, says in EPS.

With government decision about the startup basis for reorganization, EPS has to change its business process. Therefore, in the Annual program of EPS business, which has been approved by the Government, it is provided 25 million euros for expert knowledge in order that EPS complete legal provisions. The company EPS faces with these changes for the first time, so we need the experience of countries and companies that have already gone through these processes. In this way we fulfill provisions of the Energy Law, Contract of the Energy Community of southeast Europe. Until today, of these assets, EPS has spent about 400,000 euros.

Consultancy services

* Preparation and implementation of an international tender for choosing a strategic partner for the modernization and expansion of TE – TO Novi Sad 9 million dinars

* Support for the implementation of the project “Improving the environment in PC EPS and MB “Kolubara” 291 million dinars

* Separation of the distribution system operator and public supplier 280 million dinars

* Capital evaluation for EPS needs and needs of subsidiary companies that operate in the system of EPS 40 million dinars

* Defining corporate and investment strategy EPS 287 million dinars

* Improvement of business efficiency and productivity EPS 287 million dinars

* Creation and beginning of work of PBS and strengthening the Agency for Development and improvement of business system EPS 50 million dinars

* Analysis of the position of EPS in the regional electricity market JIE by 2030. 15 million dinars

Source;Kurir daily

 

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