Montenegro’s CGES to return EUR 35 million to electricity consumers due to excess revenue

Montenegro’s transmission system operator, CGES, is to return a total of EUR 34.7 million to electricity consumers due to excess revenue from the lease of cross-border capacities in recent years, mainly the undersea power cable between Montenegro and Italy. About EUR 9.5 million euros will be returned through reduced bills during 2025, and the rest will follow in subsequent years, according to the country’s energy regulator. On the other hand, consumers can soon expect a slight increase in the price of electricity, Vijesti reports.

The Energy and Water Regulatory Agency of Montenegro believes that repaying the entire sum at once would adversely affect CGES’ business in 2025. However, Momir Škopelja, a former member of the agency’s board, argues that the decision is not right, given that the company’s net profit last year was EUR 35.7 million, of which EUR 10 million was paid in dividends, and that its total retained earnings amount to EUR 80 million.

Škopelja: CGES could pay the entire refund in a single year

He says that CGES could pay the entire refund in a single year, which would only reduce its retained earnings without adversely affecting its operations. He believes that EUR 25.3 million can be returned to consumers in 2025, and that they should not wait several years for the full refund.

Electricity price will rise slightly in January

Consumers are facing more bad news, as the regulator recently decided to further raise the maximum allowed revenue for the Montenegrin distribution system operator, CEDIS, by about EUR 13.5 million euros in the next year. The increase is higher than the reduction for CGES, which means that starting in January, there should be a slight increase in the total price of electricity.

The price will go up even if state power utility Elektroprivreda Crne Gore (EPCG) does not increase its own item on the bills. EPCG has not significantly changed its item for 15 years, although it has the right to do so without the regulator’s consent whenever there is a disturbance in the market or an increase in its costs.

EPCG will be importing large amounts of electricity in 2025 if TPP Pljevlja is taken offline for overhaul

EPCG previously said it was still considering whether to increase its item on electricity bills. Next year, thermal power plant Pljevlja could be offline for as long as eight months for the so-called ecological reconstruction. During that time, Montenegro would import significant amounts of electricity, and at prices up to three times higher than those charged by EPCG to its consumers.