Electricity

EPS to transform to JSC in 2020, tariff review for 2018 to be completed by end-August, Serbia tells IMF

EPS to transform to JSC in 2020, tariff review for 2018 to be completed by end-August, Serbia tells IMF

Photo: EPS

Published

July 26, 2018

Country

Comments

comments icon

0

Share

Published:

July 26, 2018

Country:

Comments:

comments icon

0

Share

The legal status of public power utility Elektroprivreda Srbije (EPS) will be changed to a joint-stock company in 2020, while a tariff review for 2018 will be completed by the end of August with the assistance of the World Bank, the Serbian authorities wrote in the program statement concerning the new Policy Coordination Instrument (PCI) recently approved by the International Monetary Fund (IMF).

EPS’ legal status will be changed to a joint-stock company in line with the ongoing corporate restructuring process and financial consolidation, aiming to improve the viability of the company and ensure its professional management, according to the text of the program statement concerning the PCI, which the IMF Executive Board approved on July 18.

“We have continued implementing the 2016–19 labor optimization plan. We have engaged the World Bank and the EBRD [European Bank for Reconstruction and Development] to support our plan to enhance corporate governance, management, and procurement and planning frameworks,” the Serbian authorities wrote.

In March, the World Bank approved the Second Public Expenditure and Public Utilities Development Policy Loan (PEPU DPL 2), in the amount of EUR 160.6 million, to support the Serbian government’s multi-year effort to raise the efficiency and effectiveness of public spending as well as the transformation of the energy and transport sectors, including EPS.

PEPU DPL 2 will support EPS in achieving increased convergence of the guaranteed electricity supply tariff to reach market parity levels from 64% at end-2014 to 80% at end-2018, conditional on the analysis of the financial position of the company and the adequacy of resources for needed investments, the World Bank said in a press release at the time.

In line with the tariff methodology for the public supplier, the convergence will be measured by the difference between the guaranteed supply price charged by EPS and the prevailing regional wholesale price set on the basis of neighboring power exchanges (Hungarian exchange HUPX), according to the documentation posted on the World Bank’s website.

Among the goals of the operation is to increase the number of total beneficiaries of the Energy Vulnerable Program, from 60,600 households in 2014 (of which 27% were female headed households) to 70,000 households in 2018 (of which 30% are female headed households).

The loan will also back EPS’s efforts to optimize its labor force targeting an increase in the education level of EPS workforce, according to the March press release.

EPS made a net profit of around RSD 3.4 billion (about EUR 28.8 million) in 2017, as its distribution subsidiary EPS Distribucija ended the year RSD 2.4 billion (about EUR 20.3 million) in the black, according to unconsolidated audited financial reports posted on EPS’ website.

Tags: , ,
Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

macedonia mepso ebrd loan grid renewables koka basso bozinovska

MEPSO secures funds for grid investments; upgrade to enable connecting 1.2 GW of renewables

23 July 2024 - MEPSO and the European Bank for Reconstruction and Development (EBRD) have signed an agreement on a EUR 26.4 million loan

fiat grande panda stellantis serbia electric cars automobiles

Stellantis starts producing electric cars in Serbia

22 July 2024 - With the announced state subsidies, Fiat Grande Panda from the Kragujevac plant could cost around EUR 18,000

eds ceo biljana komnenic elektrodistribucija srbije

Biljana Komnenić takes helm of Serbia’s DSO

22 July 2024 - The Government of Serbia has dismissed the acting director of distribution system operator Elektrodistribucija Srbije, Bojan Atlagić

serbia dso eib loan smart meters elektrodistribucija srbije dubravka de groot

Serbia secures EUR 80 million to replace 400,000 smart electricity meters

22 July 2024 - Distribution system operator Elektrodistribucija Srbije and the European Investment Bank have signed an EUR 80 million loan agreement