Montenegro’s power supplier (EPCG) reported a €24.5m loss in the first half of 2025, a sharp increase from the €3.43m loss in the same period last year. The loss was driven by higher operating costs, reduced hydroelectric production due to poor hydrological conditions, and the shutdown of the Pljevlja Thermal Power Plant for environmental upgrades.
Despite slightly increased sales revenues, rising energy purchase costs, and the sale of electricity at prices below market rates, profitability was significantly impacted. EPCG bought 656 GWh of electricity for €62.4m, while selling 428.6 GWh for €53.5m. The gap between the buying price (approximately €95/MWh) and the selling price to domestic consumers (approximately €45/MWh) remains a major financial strain.
Production across hydro and thermal plants fell short of targets, with overall generation reaching only 78.8% of planned levels. Hydroelectric plants, particularly Piva Hydro Power Plant and Perucica Hydro Power Plant, underperformed due to weak river inflows. Meanwhile, coal costs decreased, but lower electricity output from Pljevlja due to maintenance limited its contribution.
The report highlights that despite above-average rainfall in early 2025, production remained low due to poor carry-over from the previous year and weak river yields in Q2. EPCG warned that sustained low prices to consumers compared to international market costs will continue to negatively affect its financial results.
