Consumers can remain assured that the supply of electricity will be uninterrupted and stable this year, despite the planned multi-month shutdown of the Pljevlja Thermal Power Plant (TPP) for ecological reconstruction, according to a statement from the Elektroprivreda Crne Gore (EPCG). The state-owned energy company could not specify whether the price of electricity would increase this year, adding that it would depend on business results.
At the end of last year, EPCG secured 60% of the missing electricity, or 600 gigawatt-hours (GWh) worth around 60 million euros. The remaining portion will be procured in the spring and through day-to-day operational trading, EPCG officials told Pobjeda when asked how they prepared for this year, considering the planned ecological reconstruction of the Pljevlja Thermal Power Plant.
TPP Pljevlja is expected to be out of service from March 15 to November 1, with the project entrusted to a consortium of the Chinese company DEC International, Bemaks, BB Solara and Permonte, while the expert supervision will be handled by the consortium STEAG Energy Services and Projectman.
Considering that the plant will be unavailable during the second and third quarters, leading to a shortfall of 700-800 GWh of electricity, which will be partly imported and partly produced domestically, the question arises whether this situation will lead to an increase in electricity prices for end consumers.
Too early for predictions
Earlier, both the government and EPCG had indicated that electricity prices would not increase. Even after the decision by the Energy Regulatory Agency (REGAGEN) to allow an increase in regulatory revenue, which was supposed to raise bills by 3.41%, it was said that citizens would not feel the impact. The government has not yet announced how it plans to address this, but former energy minister Saša Mujović had previously suggested that the difference for CEDIS and CGES might be compensated from the budget through subsidies.
When asked whether they can guarantee that electricity prices won’t increase during the reconstruction of TPP Pljevlja, EPCG officials stated that it is still too early for such predictions.
“Electricity price increases depend on the overall performance of EPCG. Since we are at the beginning of the year, it is too early to discuss any scenarios regarding electricity price movements for end consumers. We would like to emphasize that for years we have not changed the price of active energy (the main item on the bill, which we can influence), and since January 1, 2023, we have the ability to make changes at any time during the year, provided we notify the public and customers 15 days before the change takes effect. Again, it is too early to talk about this, and decisions in this regard traditionally aim to balance the statutory obligation to generate profit with the concern for the socio-economic position of vulnerable groups,” EPCG said.
Uninterrupted supply
When asked if they can guarantee regular electricity supply for citizens and the economy this year, EPCG assures consumers that they can remain calm, as the supply will be stable and uninterrupted.
“EPCG has already procured certain quantities of electricity to cover part of the demand, while the other part will be covered by domestic production. Through investments in the development of new production plants and the revitalization of existing ones, EPCG is ensuring new megawatts, thus increasing energy independence,” said EPCG representatives.
In a recent interview with Pobjeda, Mujović stated that EPCG is expected to perform poorly this year due to the shutdown of TE Pljevlja. He mentioned that the operation of TPP Pljevlja is crucial for Montenegro and that at least 15 years would be needed to carry out a fair energy transition before its complete shutdown.
The overall impact of TPP’s shutdown on the EPCG group is difficult to estimate, as it largely depends on the performance of other production facilities, especially the hydroelectric plants Piva and Perućica. These factors will also determine the cost of procuring the missing quantities of electricity.
Mujović has previously emphasized that the Energy Community’s requirements are aimed at increasing electricity prices in the next two years to match the European average, which is currently around 27-28 cents. He noted that citizens of Montenegro pay a low price for electricity. He also mentioned that this process will be gradual, accompanied by a series of measures to strengthen energy efficiency, which would reduce consumption, thus mitigating the impact of price increases.
