Waiting for the assessment of the Administrative Court of Montenegro regarding the electricity prices

By the end of this week the Administrative Court in Podgorica will assess whether the decision of the Regulatory Energy Agency (RAE) from 30 June 2009 which reduces the household electricity price is lawful. At the end of July 2009 a group of citizens and the management of Elektroprivreda and of Prenos Crne gore demanded rejection of the Agency’s decision which was valid by 31 December 2009. In addition, they rejected the regulator’s proposal to withdraw charges against the regulator.

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The citizens and the representatives of the non-governmental organizations pointed out that the regulator caused damage to the electricity consumers because the electricity prices were not sufficiently reduced, the energy companies, however, believe that the price reduction should not have taken place at all. The Council of Judges demanded from the Agency to submit supplementary evidence in order to justify the adoption of the contested decision.

PHOTO: Energetika.NET archive

RAE explained that they demanded the interruption of judicial proceedings because on 23 December 2009, decisions were adopted on the amount to cover the expenses of Prenos and a chart of Elektroprivreda Crne gore (EPCG) containing the electricity prices for 2010, and that solves the problems that have caused the charges. With these decisions the Agency solved the problem which occurred in the relationship with Prenos Crne gore and partly also the problem which occurred in the relationship with the citizens, said the member of the Agency’s Board Branko Kotri during the discussion at the Administrative Court.

Kotri’s reply to the accusations of EPCG that they have recorded losses due to the RAE’s decision was that for the business year 2009 the net profit was estimated to 48 million euros and not 20 million euros, as was stated by the management of EPCG.

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