STEADY ELECTRICAL POWER SYSTEM

Electricity and gas have reached a historical maximum prices and all forecasts point to electricity prices growth not only in the next but in the years to come. The energy crisis happens at already hard times of immensely distorted overall market i.e. exactly at the point when the world has started to recuperate itself from global recession impacts caused by Covid 19 pandemic.

So far, Elektroprivreda Crne Gore has run an optimum business, without additional losses and with the aim to maintain a steady supply of households and the economy.

On account of media headlines about prospective restrictions and increase in electricity price, Mr. Nikola Rovčanin, the CEO of EPCG says: ‘The Company does not intend to make either restrictions or increase in electricity price despite the fact that electricity has reached the price of 200 €/MWh on the Exchange and EPCG sold electricity to households and small-scale economy at the price of 43 €/MWh. Although there is an evident water deficit in reservoirs, if compared to the balance plans, the present situation in Montenegro is steady.’

‘Operation of TPP, our key facility, is currently steady and consumption is fine-tuned to plans. Our Thermal Plant currently covers 60% of Montenegrin electricity consumption. In case of TPP Pljevlja outage we would have to import 5 GWh a day what means we would make 1M€ worth electricity import a day. This would be an outcome of extremely high electricity market prices that these days reach 200 €/MWh. Let us remind you that EPCG sells electricity to all customers at weighted price of 43€/MWh thus the average electricity bill for the previous month amounted €25.  Since we are approaching a rainy season – and all relevant parameters indicate that inflows to our rivers as well the reservoirs water levels are to increase – we find we won’t be thinking of restrictions introductions’, points out Mr. Rovčanin.  

As regards the dependency of Montenegro on electricity import the situation is complex, yet again the importance of the mentioned plants for stable energy and economy is approved. Although the electricity and gas prices have increased by more than 100% over the last two months, the fact is that EPCG generation has diversified into 53% generation from hydro plants, 38% from the thermal plant and 9% from wind plants, thus it is easy to conclude that energy balance of Montenegro depends on hydrology as well as a steady operation of TPP Pljevlja.  

‘When observing an annual level we may say that Montenegro is within the energy balance i.e. consumption equals generation. While on the one hand we have electricity surpluses in the first and the fourth quarter, since those are periods with favorable hydrology conditions, on the other hand over the summer season we have electricity deficit where we must import electricity in order to satisfy the needs of increased consumption during the summer tourism season. Volatility of prices at European electricity market has had a growing influence to EPCG business operations, especially over the last two years, thus for reasons of some global challenges like pandemic, gas fluctuations, SO2 etc. we, likewise the entire world, face some challenges that were not present to this extent in previous decades. Just for illustration, prices in the first quarter of 2021 were 50€/MWh and they have reached 200 €/MWh up until the fourth quarter’, highlights Mr. Rovčanin.    

‘Even with regards to the abovementioned fact our citizens should not have any reason to be worried since we do not think of either restrictions or electricity prices increase’ states Mr. Rovčanin and highlights: ‘Restrictions could happen only in case of Force majeure, breakdown in transmission and distribution network. Furthermore, we have to take care of the company’s liquidity so as to be able to service liabilities arising from Contracts on electricity imports. Operational readiness of our plants is at the high level and for as long as TPP Pljevlja and hydropower plants are functioning, we shall remain in a position not only to maintain the energy and economy stability in Montenegro but to act towards construction of new plants.’

EPCG will continue to incentivize the regular payers since the later are important for keeping the system steady. For the sake of the present situation that affects our system as well and regardless of the steady-system fact, EPCG calls on all its customers to rationalize their use of electricity i.e. to maintain the system steadiness jointly, particularly having in mind unlikeliness in terms of the present energy crisis.