Electricity prices for households with two-tariff calculations will be by half percent lower staring from 1 January. There are two reasons for the cut: Energy Regulatory Agency has reduced regulatory allowed revenue for transfer and distribution, and the second reason is that Electric Power Company of Montenegro (EPCG) will not use its legal right and increase prices of its services.
Current electricity price amounts to €9,96 per kWh. After the reduction, it will be €9,91.
“Analyzing the electricity market, and considering the extraordinary drive preparedness of the plants, positive hydrological situation and accumulation, as well as the efficiency of plants, EPCG won’t request changes in the electricity prices for the next year”, said representatives of EPCG.
According to them, the fact is that EPCG earns much better from the cross-border sale than from selling energy to end users in Montenegro.
Electricity bill consists of transmission, distribution, active energy of the EPCG, market operator (COTEE), renewable energy resources (MEK) and VAT. Grid services account for 45% of the entire bill.
Electricity prices in Montenegro, for households and small buyers, depend exclusively on the freely formed market of the supplier, with restrictions defined by law which are directly related to electricity price in HUPH.
EPCG, as supplier, is obliged to provide energy and supplies all buyers on a regular basis, at prices regulated to be considerably lower than the market price.
EPCG has a limiting element though, because price can’t exceed middle value of the futures for next year.
If we take this into consideration, restrictions on the increase would be significantly higher in comparison to the existing price.
However, there’s a second level of correction. The law stipulates that price formed in such a way cannot exceed 6% compared with the existing price.
Montenegro has been importing around 500GWh in recent years.
According to EUROSTAT, total price of delivered KWh for consumers in the household category amounted to more than 10 EUR cents per kWh in the second half of 2019.
Growth trend for households in the EC contracting parties has continued, whereas price for industry started to go up.
“Often changes in the electricity price spark of speculations over the possible increase in the price of goods and services due to the new energy prices. That definitely can’t be a reason for increase in process of groceries or products”, said EPCG representatives.
