The Pljevlja thermal power plant, which generates over 40% of the electricity needed for Montenegro, will be out of operation for the next seven and a half months. However, this will not affect the regular electricity supply for consumers, who will not have to pay for the expensive imported electricity for now. The billing rates will remain the same during the first half of the year, according to Elektroprivreda Crne Gore (EPCG). They plan a detailed analysis, after which they will inform the public if electricity prices will increase.
For the next seven months, Montenegro will be without its main electricity producer – the Pljevlja thermal power plant. However, EPCG assures that citizens will not notice any difference on their bills.
“In the first half of the year, there will certainly be no increase in electricity prices for any consumer category. After our analysis, we will likely present our stance for the rest of the year at the beginning of the next quarter. But we can definitively say that households consuming up to 500 kWh will not experience any price increase for the rest of the year,” said Miro Vračar, the director of EPCG’s production.
Economists are less certain, as Montenegro will rely on market conditions for electricity imports. “Whenever electricity is imported in Montenegro, it is usually more expensive since electricity is a market commodity. It is therefore very difficult to expect no increase in electricity prices at all. I personally believe that the government will try to manage its economic policy to ensure the increases are not too significant, likely around 10%,” said financial consultant Stevan Gajević.
Economic analyst Davor Dokić noted that even if subsidies or other measures are needed, the government will ensure that prices do not rise drastically. “They will not allow the price to skyrocket because energy is a source of inflation,” he said.
In addition to relying on market conditions, due to the reconstruction of the thermal power plant, Montenegro will also depend on weather conditions. “Everything depends on energy balances. Now, we are entirely dependent on hydro energy. We no longer have coal, only water, which means we will have to look to the sky in the coming period,” Dokić added.
Montenegro will face a power shortage of at least 80 million euros this year. The majority of this deficit has been covered, and the remainder will be purchased in the second half of the year.
“We are aware of the difficulties caused by a shortage of about 800 GWh this year, but we have already overcome 75% of the issue. We have secured the necessary quantities of electricity, and the remaining 25% will be procured in the third quarter, which we hope to secure in the second quarter. The remaining part will be procured on a daily or weekly basis, operationally,” Vračar explained.
As announced by Elektroprivreda, the subsidies on bills that were in effect during the first three months of the year may continue until July.
