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Separation of FC Distribucija good sign for new suppliers

Published

May 9, 2016

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Published:

May 9, 2016

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The plan for the unbundling of the distribution sector (FC Distribucija) from state-owned utility EPCG to a separate entity sends a positive signal to new electricity suppliers and improves business environment for their arrival, said Energy Regulatory Agency (RAE), news agency Mina-Business reported. The separation of is not going to make good environment for new electricity suppliers by itself, this will happen only if the new company operates on the market in the right way, according to the report.

RAE explained that according to the Energy Law the seclusion of distribution from the supplier is a necessary condition for the existing of healthy and competitive electricity market. The company for distribution must treat all suppliers in the same manner and the only way to achieve that is to separate distributors from suppliers, the article said.

The electricity market for households in Montenegro opened at the beginning of the last year, but so far there weren’t any new public suppliers interested. Apart from EPCG, which was the main public supplier before the new legislation, only Montenegro Bonus supplied Kombinat aluminijuma Podgorica (KAP).

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