The Energy Community Secretariat supports the certification of the Montenegrin transmission system operator Crnogorski Elektroprenosni Sistem (CGES) in line with the Preliminary Decision of the Regulatory Energy Agency of Montenegro (RAE).

RAE is to adopt a final certification decision, taking utmost account of the Opinion of the Secretariat.

The Secretariat’s Opinion on the certification of the CGES under the Third Energy Package supports the certification subject to several remarks.

“RAE in its final decision must ensure a true and comprehensive separation of control between the different public bodies controlling CGES, on the one hand, and the state’s assets in electricity generation and supply, on the other. This will require an assessment of the role of and potential interference by the Government and/or the Prime Minister in relation to the Ministry of Finance (the body controlling CGES),” the Secretariat said in a statement.

The Secretariat also invited RAE to investigate the independence of CGES shareholders other than the state, in particular, Serbian transmission system operator Elektromreža Srbije (EMS) as well as other minority shareholders (Roboti Global Fund United States of America and Langston Shipholding LTD – Liberia) from generation and/or supply companies, and if necessary to require appropriate measures ensuring independence and avoiding conflicts of interest

The Secretariat also requested that RAE investigates the independence in the control over CGES in relation to other related undertakings founded by the State, most notably Montenegro Bonus, and if necessary to require appropriate measures ensuring independence and avoiding conflicts of interest.

“The RAE must investigate how dividends are paid out and to whom, and how the auditors of CGES and public power utility Elektroprivreda Crne Gore (EPCG) as well as Montenegro Bonus are appointed,” the Secretariat said in its Opinion.