Serbia: Power utility Elektroprivreda Srbije EPS starts the market changes, the first step in EPS incorporation, the formation of EPS group

13. August 2014. / News Serbia Energy

The Government of the Republic of Serbia gave consent to the Amendments and Additions to the founding documents of subsidiary companies within the “Electric Power Industry of Serbia”. Changes of subsidiaries’ founding documents are the first step in the EPS incorporation, which will enable cost reduction, efficient and transparent operations.

The introduction of unified management and unification of business processes and procedures at the system level of EPS, at which for nearly two years insists Aleksandar Obradovic, Acting Director of EPS, 36 MEUR should be saved per year. Also, a lot of irrationalities will be removed by the founding of EPS group and it will be allowed a drastic reduction in the number of directors which now there are about 600.

The new subsidiaries’ founding act recognize EPS group as a whole and an introduction into the system integration, which will allow to manage all processes and introduction of unified management of business finance, law, information technology, procurement, human resources and public relations.

According to the previous mode of organization, which was inefficient and irrational, EPS did not have competencies to organize work within the subsidiary companies and each subsidiary was organized by its founding documents that did not recognize EPS as a whole, but as a collection of independent businesses.

The next step is that EPS submits the Corporatization plan with a program of activities and deadlines for EPS reorganization to the Government of Serbia and the change of the legal form of a joint stock company. By this EPSwill stand shoulder to shoulder with all the modern effectively organized and profitable energy companies in the region and Europe.

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