Montenegro’s state-owned power utility EPCG has kept the active-energy component of household electricity prices unchanged since 2019, while both its household customer base and the number of regular payers have increased substantially. The company had 415,759 household customers in July 2026, nearly 18% more than the 352,815 recorded in June 2019.
The number of households classified as regular payers increased from 188,913 to more than 257,985, raising their share of total household customers from 53.5% to 62.1%.
Household Tariffs and Customer Discounts
The active-energy component of household tariffs has remained unchanged since June 2019, despite periods of significantly higher electricity prices on European wholesale markets. This places greater importance on EPCG’s operating efficiency, domestic generation and collection of customer payments. EPCG continues to offer discounts to encourage regular bill payments. The utility spent around €4 million on customer discounts between January and July 2026, compared with approximately €3.6 million allocated during the whole of 2019. Higher payment discipline reduces outstanding receivables and supports cash flow as EPCG finances generation maintenance, renewable investments and electricity imports during periods of weaker domestic production.
Pljevlja Remains Important for Domestic Supply
Montenegro’s electricity balance remains highly dependent on hydrological conditions. Hydropower provides a substantial share of domestic generation, but output can decline sharply during dry periods, increasing reliance on the Pljevlja coal-fired power plant and electricity purchases from regional markets.
Pljevlja accounted for around 65% of EPCG’s electricity production between June and August, generating approximately 442 GWh of electricity worth more than €51 million.
EPCG estimated that purchasing an equivalent volume on Hungary’s HUPX electricity market would have cost around €57.4 million, excluding cross-border transmission capacity and other import-related costs. The comparison shows the financial importance of domestic generation when maintaining household electricity prices while limiting exposure to wholesale-market purchases.
Customer Growth and Receivables
EPCG has added nearly 63,000 household customers since 2019. Montenegro has also recorded repeated summer electricity-consumption records, with tourism, air conditioning and coastal real-estate development contributing to seasonal demand. A larger customer base can increase revenue, but effective payment collection remains important to the financial performance of the retail business.
EPCG has historically carried substantial receivables from households and businesses. Earlier 2026 data showed approximately €175 million in receivables, including more than €112 million from households, with a significant portion of the outstanding debt several years old. Improved current payment behaviour does not eliminate those legacy receivables, but stronger ongoing collection can limit further accumulation.
Renewable Investment and Future Energy Costs
EPCG is simultaneously facing higher investment and operating requirements as Montenegro moves toward deeper integration with the European energy market. EU accession, carbon pricing and investment requirements are increasing pressure on electricity-sector economics. The Pljevlja plant will face higher carbon and environmental costs, while EPCG is developing wind, solar and storage projects aimed at reducing dependence on coal and electricity imports.
Projects including the Gvozd wind complex will contribute to changes in the generation mix. Replacing thermal generation with variable renewable output also requires grid investment, balancing capacity and storage. The increase in regular-paying households to more than 62% strengthens EPCG’s cash collection as the utility maintains household energy charges while financing generation, renewable projects and other electricity-system requirements.
