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Montenegro, Government adopted the Information on losses in the electricity distribution system in this year

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The government recommended to the Board of Directors of Elektroprivreda (EPCG) that for the period from January 1 to February 28, special terms of trade for the supply of losses on the Montenegrin Electric Distribution System (CEDIS) network, at the level of the regulatory approved price using the book approval method.

On Tuesday, at a telephone session, the government adopted the Information on losses in the electricity distribution system for January and February of this year.

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– In order to overcome the current situation in CEDIS and in order not to have consequences in the form of jeopardizing the normal functioning and work of the sole operator of the distribution system and orderly and reliable supply of electricity to citizens and businesses, it is recommended that the Board of Directors of EPCG, in accordance with the Law on energy, for the period from January 1 to February 28, contracts special terms of trade for the procurement of losses on the network to CEDIS at the level of the regulatory approved price by the method of book approval – it is stated in the Information.

As explained, since there were losses in the electric distribution system, there was also an extremely large additional cost of CEDIS based on the procurement of energy to cover losses in the distribution system for 2021 and last year.

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– The stated level of additional costs of purchasing electricity to cover losses calls into question the liquidity of CEDIS and the possibility of performing public services prescribed by the Law on Energy – it is stated in the Information.

It Is added that the trend of extremely high energy prices, which has continued this year, in addition to the already existing financial losses, will cause additional costs to CEDIS based on the procurement of energy to cover the loss for this year, which drastically calls into question the further smooth functioning of the operator distribution system.

– In order to remediate the mentioned negative effects of the CEDIS crisis, we point out that Article 213 of the Law on Energy, among other things, stipulates that in the event of a disruption in the market caused by an unexpected lack of energy, an extreme rise in electricity prices on the market, an immediate threat to the independence and integrity of the state, natural natural disasters and technological disasters, the Government can introduce special measures – specified in the Information.

The aforementioned provision, as explained, enables CEDIS to procure the necessary amount of energy to cover losses at special prices, which would reduce the negative effects on that basis for this year.

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