Montenegro’s state-owned power utility EPCG posted a loss of 24.5 million euros in the first six months of 2025, a sharp increase compared to the 3.4 million euros loss recorded in the same period last year. The company’s financial report shows total revenues of 208 million euros, while expenses rose to 234.7 million euros, driven primarily by higher operating costs.
Net sales revenues reached 200.7 million euros, up 2.4 percent year-on-year, but operating expenses climbed to 212.7 million euros, about 15 percent higher than in 2024. Salaries expenses fell by 10 percent to 15.4 million euros, yet financial costs increased to 5.4 million euros.
Production performance was significantly affected by operational challenges. The coal-fired Thermal Power Plant (TPP) Pljevlja was taken offline on 31 March for environmentally focused reconstruction and annual maintenance, reducing output. Adverse hydrological conditions also played a role: despite heavy rainfall in March, weaker inflows in the second quarter resulted in lower hydro generation.
Total electricity production stood at 1,058 GWh, or 78.8 percent of the planned level. HPP Perućica generated 423 GWh, 22 percent below target, while HPP Piva produced 230 GWh, 41 percent under plan. Small hydropower plants contributed just 5.5 GWh. TPP Pljevlja, despite being offline after March, still generated nearly 400 GWh, slightly exceeding its planned output but well below last year’s production.
EPCG increased its reliance on electricity purchases, buying 656 GWh from the market at an average price of 95 euros/MWh, compared to 430 GWh a year earlier. It sold 429 GWh for 53.5 million euros, down from 545 GWh sold in the same period of 2024. Purchases from renewable producers under feed-in tariffs also grew, costing 26.9 million euros versus 21.7 million euros last year. Coal expenses decreased to 17.7 million euros.
The company highlighted that a key factor behind the negative result is the gap between high international wholesale prices, often above 100 euros/MWh, and the regulated domestic tariff of about 45 euros/MWh for distribution customers, which creates a structural loss.
Management described the weak performance as temporary, attributing it to the shutdown of TPP Pljevlja and unfavorable hydrology. They stressed that the plant’s reconstruction and the relocation of the Cehotina river, although costly in the short term, are strategic projects that will deliver long-term environmental and energy benefits for Montenegro.
