€200 MILLION WORTH OF INVESTMENTS IN 2022, 3.2% RISE FOR SALARIES

With regard to the information about EPCG's business operations in the first nine months of 2021 and possible misinterpretation of officially published data, we would like to clarify the following to the end of providing adequate information to the public about the business operations of country’s biggest company:

In spite of challenging and economically unpredictable business year of 2021 caused by COVID-19 pandemics and drastic fluctuations in electricity price on the international markets, Elektroprivreda Crne Gore completed the third quarter with €412 800 in profits and €28.5 million increase in revenues.

The high market prices of electricity, which EPCG had to import due to poor hydrology and insufficient generation, had a far-reaching effect on such profit of the Company. In the first nine months of the past year, EPCG generated €2.2 million profit when the electricity price was five times lower than the current price on the international market. To the end of ensuring stable electricity supply, EPCG imported additional €15 million worth of electricity in August 2021 alone.

We would like to point out that despite its legal rights, EPCG refrained from increasing the electricity price to both the households and the economy, although many countries in Europe and in the region decided otherwise.

EPCG has therefore taken into account the present social-economic situation in the country triggered by the market disturbances and aggravated business circumstances brought about by the pandemics.

When it comes to the labour costs, they were increased by €1.3 million this year primarily due to the fact that this amount comprises also €1,150,000 worth of cost of severance pays, whereof €400 000 accounts for the stepping-down of members of the former Company management. Consequently, when it comes to cost of salaries (employees for indefinite period of time, employees for a definite period of time and persons hired through the agency) in the period January-October 2021, these costs were by 3.2% higher as compared to the same period of 2020, i.e. not 8.7% higher as presented to the public.

Over the course of the past six months, EPCG hired the total of 115 persons, whereof 29 for an indefinite period of time and 86 for a definite period of time, while engagement has ended for 51 employees.

Bearing in mind the planned investment cycle which exceeds €200 million in value in 2022 alone, this proves the Company’s need and readiness engage a portion of employees for the purpose of implementing and completing the projects Solari 3000+ and 500+, SP Vilusi and SP Slano, WF Gvozd, etc. Moreover, there is a need for an adequate filling of the work positions for the operation processes in some company parts to develop smoothly and without interruptions.

Ultimately, we would like to emphasize for the sake of the public that the indebtedness level is low and the company is capable of covering all the liabilities towards creditors and investors while the liquidity coefficient demonstrates that the company has sufficient funding to settle liabilities tied to the upcoming projects.