Montenegro has tightened regulation of the pellet heating market, retaining maximum retail prices while introducing stricter controls on additional charges and reinforcing obligations for producers to supply the domestic market.
The regulated prices remain capped at €250 per tonne for A2 pellets and €270 per tonne for A1 pellets. Amendments to the rules are intended to prevent producers and traders from bypassing these limits through compulsory packaging, transport or similar fees.
The temporary price-control regime is set to remain in force. Authorities have also strengthened requirements intended to ensure that domestic producers continue supplying Montenegro rather than directing output exclusively towards higher-priced export markets. The measures target household heating costs ahead of winter, particularly in northern Montenegro, where pellets and other biomass fuels are widely used.
Montenegro produced approximately 118,685 tonnes of pellets in 2025, compared with around 107,040 tonnes in the previous year. Exports remain an important source of revenue for the industry, creating a commercial incentive to sell more production abroad when international prices exceed those available domestically.
The strengthened domestic-supply obligations limit producers’ flexibility to redirect output towards export destinations.
Transport costs present another challenge for the sector. Pellets are bulky and relatively expensive to deliver over long distances, with final costs varying according to customer location and order size. If companies cannot charge genuine transport expenses separately, producers or retailers may have to absorb part of the delivery costs, potentially making sales to distant customers less attractive.
The government’s amendments also address cases in which consumers were charged the regulated pellet price but faced additional mandatory packaging or delivery fees that substantially increased the final bill. Stricter controls on supplementary charges are intended to make the price ceilings more effective in protecting consumers.
For producers, the tighter restrictions create additional pressure on profit margins. If regulated prices fall too far below production costs and export-market returns, suppliers could reduce investment, postpone maintenance or cut future capacity, potentially weakening domestic supply security. The measures therefore combine consumer price protection with requirements to maintain domestic availability. Their implementation will depend on consistent inspections and enforcement to prevent companies from gaining an advantage through hidden charges or informal sales channels.
The period covered by the temporary regime will test whether pellet producers can maintain profitability while complying with both the €250-per-tonne A2 ceiling, the €270-per-tonne A1 ceiling and domestic-supply requirements. For households, the immediate issue is whether pellets remain available throughout the winter at regulated prices without substantial additional charges.
