What are the key obstacles of Montenegro energy company EPCG, depths and games ?

, SEE Energy News

If Energy company of Montenegro EPCG does business on free regional and domestic power market with real prices of electricity, it would make profit of 75 million EUR yearly according to current trade, Director of TPP Pljevlja, Luka Jovanovic estimated in recent statement. He said that energy sector is very important segment of economy and industry development of Montenegro and that united electricity market would contribute to more confident and quality electricity supply. EPCG is partially owned by Italian A2A company together with MNE government ownership package. Montenegro imports 30% of electricity needs every year, energy balance dependant on hydro power gen facilities and water balances.

EPCG is oriented toward free market, improvement of user services, increase of electricity stability and decrease of Montenegrin dependence of import because EPCG can support its economy growth only like energy and economy independent- Jovanovic said for magazine of Montenegrin Industrial Chamber.

He added that realization of these goals requires consolidation of finances and company through optimization of internal activities and decrease of expenses and through electricity payment improvement.

-EPCG plans to continue contribution to Montenegrin industry improvement with accomplishing strategic goals, according to the current business strategy- Jovanovic said.

He stated that hard financial business of the company was continued last year due to negative global trends and a row of factors that EPCG couldn’t influence. Jovanovic said that the first in a row of factors refers to approved electricity tariffs to all kind of consumers what represented financial overburden to the company comparing to production and operational costs.

-On the other side, electricity price on international market is at constant increase and it is significantly higher than that prescribed by regulator so this difference presents clear loss of the company- Jovanovic said and reminded that 30% of electricity misses Montenegro on annual level and it has to be imported. He warned that debt of Aluminum Combine Podgorica for used electricity influences EPCG’s business and further development of energy sector.

-Ratio between manufacture and consumption is harmonized with decrease of KAP’s consumption and functioning of electricity system is more stable. Results of the last quarter showed that energy import is on annual level of arranged amounts what indicates the positive result of operational profit- Jovanovic stated. Hydrological conditions also influence EPCG’s business results because more than 60% of energy in Montenegro comes from hydrological sources. Energy production from HPPs was for the fifth part lower in the first three quarters of last year because of small amount of rain.

He expects that this year will be marked by consolidation of financial situation, continuation of planned investments, increase of manufacture capacities, decrease of import and losses, extension and acceleration of project of improving measurement system in distribution and better orientation toward consumer.

Source Serbia Energy SEE Desk/MNE chamber of commerce