Serbian government adopted preliminary draft for the reorganization of its Energy company EPS

26. November 2012. / News Serbia Energy

The Serbian government has accepted a conclusion on November 16, accepting the preliminary draft for the reorganization of “Electric Power Industry of Serbia”. This document includes EPS intention to make a number of changes concerning the legal form of the organization of the company, resulting from obligations from the Agreement on Stabilization and Association to EU, as well as several fundamental laws in Serbia, especially the Energy Law and the Law on Public Property .

As noted, the reorganization involves changing the legal form of EPS into a stock company, as well as changes in the organization of subsidiary companies and managing them. Director General of EPS Aleksandar Obradovic said at a meeting of the top management of EPS with directors of plants and mines, held on November 20, that the changes start immediately, beginning on January 1, the following year, the legal documents for the establishment of a new organization of this company are already being prepared.

– We are facing a moment of truth, we are in a very difficult financial situation and our business fund currently lacks more than 40 billion dinars. Add to this12 billion Euros of already arranged investments, which should also be provided. This is a situation we have to get out of and do everything to turn this company, called a sluggish monopoly into a well organized business system that will generate a profit. To achieve this goal we would require mobility of everyone in the “Electric Power Industry of Serbia” – said Mr. Obradovic.

He explained that with the opening of the internal market in electricity, increased efficiency would be needed at all levels of the economy, especially in production, which will have to be adapted to the needs of the market, and the way it functions. Director General pointed out that efficiency must become imperative in the overall organization of work, use of fuel and equipment, quality control of spare parts, raw materials and services to be procured, particularly in management of costs.

– “Electric Power Industry of Serbia” is one of the last defenses of the state, its citizens and the economy, its energy and economic independence. Changes we are starting to do, should ensure the survival and development of EPS, in order to secure it as a pillar of economic stability in the country and at the same time securing its proper share in the energy region. If this chance gets wasted, I cannot see the direction EPS and Serbia are going – Obradovic said.

Speaking of responsibility of EPS for the situation in the Serbian economy, especially machinery, Managing Director said that the “Electric Power Industry of Serbia”, as a public company, is a pillar of defense of national interests and national economy and workers, but ” in order to be able to help those in the need it has to help itself first.”

– The concept of change that we have chosen and for which we got the support of the Government would have to provide faster overcoming of difficulties and establish a positive trend that will lead to stability in making profits. In this way, we help ourselves and others. It is clear that only a profitable EPS can be a safe pillar of the overall economy in Serbia – said Mr. Obradovic.

Source Serbia Energy Magazine

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