Montenegro scraps feed-in tariff surcharge

The Montenegrin government has decided to abolish the surcharge paid by consumers through electricity bills to fund the feed-in tariff scheme for privileged power producers. The funds collected through the surcharge will instead be secured through coal excise duty.

Answering MPs questions in the parliament, Prime Minister Duško Marković said the abolition of the surcharge will lower electricity bills by 1.5%-5%.

Instead of consumers, the fee will be paid by the government, with money collected from polluters that emit carbon dioxide, through excise duty on coal, Marković said, according to the Montenegrin government’s website.

This item accounts for 5% of electricity bills of up to EUR 30 or about 1.5% of bills of up to EUR 100, he said.

Due to the abolition of the surcharge, public power utility Elektroprivreda Crne Gore (EPCG) has postponed to June 1 the introduction of 3 tariff models for customers, a move originally planned for May 1.

The introduction of these models, coupled with the abolition of surcharge OIE1 for the consumption of up to 300 kWh, will decrease the bills by 2.5%-5.5% for customers consuming up to 300 kWh a month, according to EPCG, state broadcaster RTCG reported.

At the end of last year, the government decided to start gradually reducing feed-in tariffs for renewables from January 2020.

Bids for environmental reconstruction of TPP Pljevlja to be called this month

Marković also announced new investments in the energy sector. This month, a tendering will be announced for the environmental reconstruction of the first unit of the Pljevlja Thermal Power Plant (TPP), while in June a contract will be signed for the construction of the Gvozd wind farm and for the reconstruction of the hydropower plants (HPPs) Perućica and Piva.

By the end of the year, the construction of the Briska Gora solar power plant will begin, Marković said.

Along with these projects, preparatory work is underway for the construction of HPP Komarnica.

Marković said that EPCG will invest EUR 40 million in the environmental reconstruction of TPP Pljevlja, EUR 40 million in the reconstruction of HPPs Piva and Perućica, and EUR 200 million in the construction of the Briska Gora solar power plant. EPCG has also secured between EUR 260 million and EUR 290 million for the construction of HPP Komarnica, EUR 160 million for the construction of HPP Kruševo, and EUR 70 million for the construction of the Gvozd wind farm.