The Regulatory Agency for Energy and Regulated Utility Activities (REGAGEN) has adopted decisions on temporary electricity prices and fees for the coming year, which are expected to result in an increase of approximately 2% in the final electricity bill for households, Vijesti reports. For an average household, this increase would amount to slightly less than one euro.
The price adjustment applies only to transmission system cost corrections. The regulator does not influence the portion of the bill related to electricity production costs (active energy, higher and lower tariffs) that belongs to Elektroprivreda Crne Gore (EPCG), which accounts for about 40% of the total bill.
EPCG has the right to increase this portion of the bill if there are market disruptions, such as rising production or import costs. However, the company has not exercised this option in the past 15 years. Recently, EPCG stated that it is still analyzing market conditions and that any increase in its portion of the bill would be a last resort.
REGAGEN adopted the decisions on temporary tariffs for approved costs related to the transmission and distribution systems, as well as market management fees, on November 21, but published them on November 28.
The main part of the costs and fees remained unchanged for the Montenegrin Transmission System (CGES), Montenegrin Electricity Distribution System (CEDIS), and the Montenegrin Electricity Market Operator (COTEE). However, corrections for transmission system costs were increased, which will impact the final price by around 2%.
Over the past five years, the average household electricity price has increased by 4.1%, driven by distribution system cost adjustments (CEDIS). This increase was offset by discounts for regular payers provided by EPCG on its portion of the bill.
Meanwhile, prices for firewood and pellets have risen by 70–100% over the same period, making electricity the cheapest energy source, which has contributed to increased electricity consumption for heating purposes.
