Montenegro’s state-owned electricity utility Elektroprivreda Crne Gore (EPCG) recorded €171.9 million in outstanding customer electricity obligations, with residential consumers accounting for nearly two-thirds of the total.
The balance increased by €1.38 million, or 0.81%, compared with the corresponding period of the previous year, according to information provided by EPCG to local newspaper Dan.
Households owed approximately €108.5 million, while businesses and other commercial consumers accounted for €63.4 million. Residential obligations therefore represented approximately 63% of the total, making household payment patterns a significant factor in the utility’s receivables management.
Higher Seasonal Bills Affect Collections
EPCG attributed part of the increase to unusually high electricity bills during the winter and summer periods, when invoiced amounts were approximately 20% above typical levels. The utility said the higher bills made collection more difficult but maintained that payments covering current invoices and previously due obligations remained close to 100% under its collection-performance measure.
The reported €171.9 million represents accumulated customer obligations and should not automatically be classified as entirely overdue or irrecoverable debt. EPCG supplied electricity to 465,153 customers, comprising 417,178 households and 47,975 other consumers. Its customer base increased by 8,340 compared with the end of the previous year.
Receivables and Investment Requirements
The management of customer balances is relevant to EPCG’s working-capital position as the utility faces investment requirements involving electricity generation capacity, renewable energy, operational modernisation and security of supply.
Large receivables can increase working-capital needs and affect the cash available for capital expenditure. Their actual financial impact depends on collection timing, the age of outstanding balances and the recoverability of individual accounts. EPCG has not yet published its completed financial results for the first nine months of the current year. The company also said it was assessing the potential effects of the government’s proposed Euro wage model, adding that it expected to manage the changes without destabilising operations.
Potential Tariff Changes Remain Under Review
Regarding electricity prices, EPCG said any possible adjustment to the active-energy component would require further analysis and consultations with the relevant institutions. The development of electricity receivables, collection performance among household and commercial customers, and the effects of potential wage-policy and tariff changes remain relevant to EPCG’s financial position and its capacity to fund future investment while maintaining electricity supply for domestic consumers.
