Montenegro’s electricity distribution operator, CEDIS, has successfully reduced its network losses to a record low of 6.82% in September, attributed to the advancement of a smart-meter investment program exceeding €8 million. This marks a significant improvement from 7.23% in September 2022 and 7.95% in September 2024.
This reduction in loss rate is notable even as the volume of electricity entering the network has increased substantially. In September, CEDIS received 261.9 GWh of electricity, which is approximately 30.6 GWh more than the same month last year.
During the first nine months of 2026, the total amount of electricity entering the distribution system reached around 2.575 TWh, with cumulative losses decreasing to 9.61% from 9.73% compared to the previous year.
The improvements achieved by CEDIS are estimated to have saved around 3,000 MWh of electricity, translating to a financial benefit of approximately €400,000 at current market prices. While this financial impact is relatively modest in relation to the company’s broader investment needs, reducing technical and commercial losses enhances operational efficiency by lessening the amount of electricity that must be purchased without equivalent revenue generation.
This loss reduction is particularly beneficial during periods characterized by elevated wholesale electricity prices. Concurrently, CEDIS is advancing its fourth phase of an advanced metering program, which involves investments exceeding €8 million and encompasses the reconstruction or relocation of about 22,500 metering points.
As of now, nearly 49% of the planned work for this phase has been completed. The implementation of advanced meters is expected to enhance billing accuracy, identify irregular consumption patterns, and assist utilities in pinpointing areas within the network where technical losses are disproportionately high.
The data provided by these new meters will be increasingly vital as Montenegro integrates more distributed solar generation, electric vehicles, and flexible electricity tariffs into its energy framework.
The notable result in September should be viewed independently from the cumulative figure for the nine-month period. A monthly loss rate of 6.82% indicates exceptional operational performance, while cumulative losses standing at 9.61% suggest there remains potential for further enhancements throughout the year.
This discrepancy can be attributed to seasonal consumption trends, varying network conditions, and historical loss levels. For CEDIS, ongoing reductions in losses could facilitate additional funding for necessary network upgrades and digitalization efforts.
The electricity distribution system in Montenegro will necessitate significant investment as renewable energy sources expand and demand for electricity evolves. The introduction of modern metering systems alongside lower losses can strengthen the business rationale for such investments by establishing a more efficient revenue framework.
The broader implications of this modernization effort indicate tangible financial outcomes are being realized. By demonstrating direct reductions in unbilled electricity and operating costs, CEDIS can position its smart meter initiative not just as an EU compliance measure but as a critical component of its operational strategy.
If this trend continues, further reductions in network losses may emerge as an increasingly vital source of internal financing for future grid investments.
