Montenegro’s energy regulator has proposed a €107 million adjustment to permitted transmission revenues for electricity network operator CGES, alongside reductions in regulated transmission and distribution charges. The proposed changes could lower household electricity bills while affecting the future revenues and investment capacity of network operators.
The Regulatory Agency for Energy and Regulated Utilities (REGAGEN) has opened consultations on permitted revenues for the three-year regulatory period, proposing reductions of approximately 15% in transmission charges and 7% in distribution charges.
If implemented without increases in other electricity bill components, the changes could reduce total household electricity costs by an estimated 5–6%, according to local reporting. State-owned electricity supplier Elektroprivreda Crne Gore (EPCG) can independently adjust its electricity supply component, potentially offsetting some or all of the savings generated by lower network charges.
€107 Million Adjustment Concerns CGES Revenues
The proposed correction primarily concerns Crnogorski elektroprenosni sistem (CGES), which operates Montenegro’s high-voltage transmission network and its electricity interconnection with neighbouring markets.
According to an analysis of the regulatory proposals, CGES collected approximately €107 million more in transmission and cross-border capacity revenues between 2022 and 2025 than the amounts incorporated into its regulatory revenue framework.
A substantial portion of the additional income was associated with the utilisation of transmission infrastructure, including the submarine electricity interconnector between Montenegro and Italy.
Under the applicable regulatory arrangements, the difference between collected revenues and amounts recognised in the regulatory framework is expected to be reflected in permitted revenues for the next regulatory period, reducing the amount recovered from domestic electricity consumers.
Network Investments Face Revenue Pressure
CGES recorded €19.3 million in net profit during January–September 2026, representing an increase of approximately 16% year on year. Its capital expenditure more than doubled to €25.4 million. The company has warned that lower regulated revenues could affect future profitability and limit the financial resources available for transmission infrastructure investments.
Its investment programme includes network modernisation, connections for renewable energy generation and projects designed to strengthen regional electricity trading.
Distribution operator CEDIS is also facing proposed reductions in permitted revenues. The adjustments include changes to investment-related costs and expenditure on new smart meters. The proposed changes could place additional pressure on investment budgets as Montenegro seeks to modernise its electricity networks and accommodate further renewable generation capacity.
Household Savings Depend on Electricity Supply Charges
The final impact on consumers will also depend on EPCG’s decisions regarding the electricity supply component, which represents approximately half of the average electricity bill. EPCG has not increased this component for many years. However, any future adjustment could absorb part or all of the savings resulting from lower transmission and distribution charges.
REGAGEN has indicated that the consultation process could result in amendments to the proposed permitted revenues, meaning that final household tariffs have yet to be determined. The proposed €107 million adjustment represents a multi-year regulatory revenue correction rather than an immediate cash repayment or a confirmed deduction from CGES’s reported profit.
