Serbia: Privatization or strategic partner engagement in the Power Utility company EPS?

7. November 2014. / News Serbia Energy

Serbia energy company EPS should not be privatized, in a situation where restructuring of the company has just started, the announcement of privatization, and seeking of a minority strategic partner, is at least surprising.

EPS was not able to find a strategic partner for the construction of new facilities, TPP “Kolubara B” and Unit B-3 in TPP “Nikola Tesla B”, although there was interest of major European electricity companies during the preparation of the tender. These plants have not been built and it is hard to believe that the big and famous companies, which are alsofaced with problems – for example, German RWE sales its office building – be prepared to invest in EPS.

Serbia Energy business consultants all suggest EPS should not be sold, especially not piece by piece because, if someone wanted to buy a portion of company, it would probablybe hydroelectric power plants, therefore, green energy. EPS is the company from which should be removed daily political interests and discontinued the practice, such as, for example, forgiveness of debts for electricity, even to those who steal. Also, EPS, needs to release of the policy of non – power cuts to non-paying companies, and it is necessary to terminate the party employment.

The EPS should introduce a system of accountability and management must be selected for their expertise and qualifications. In addition, it is necessary to make the development strategy of the company because it is the only way to run a Serbian mechanical engineering and related industry. The company shouldseek strategic partners only in the sector of building new capacities, and we should take care about the protection of national interests because without EPS there is no energy security of Serbia.

If any of the potential strategic partners, some bank or electricity company, is ready to invest in EPS, it should not be used for “patchingof debts ” but to finance the construction of new capacity – reversible HPP “Bistrica”, TENT B -3 …

– The Serbian Government now has the task to prepare EPS for the third phase of market opening, not to expose it to unfair competition. If the country help EPS to come out well organizedfrom restructuring, as a modern energy company, for what could serve experience of western countries that have not sold out their electric power industry, then the recovery of Serbian economy and prosperity of the whole countryalso is on the horizon.

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