Montenegrin state-owned power utility EPCG has confirmed that electricity prices will remain unchanged for the time being. As the ecological reconstruction of thermal power plant Pljevlja begins, a process expected to last until mid-November, EPCG has secured the necessary electricity imports to cover any shortfall during this period. Approximately 70 million euros have been allocated for this purpose.
TPP Pljevlja, which supplies over 40% of the country’s electricity, will be offline for the next seven and a half months due to the reconstruction. Despite this, consumers are assured of uninterrupted electricity supply thanks to the imported energy. EPCG’s Board Chairman, Milutin Djukanovic, highlighted that electricity prices remained steady during the first quarter of the year, and this policy is expected to continue over the next three months. However, he emphasized that electricity is a market-traded commodity, and pricing decisions for the summer months will depend on market conditions. While there are no immediate plans for a price increase, EPCG remains cautious due to the operational pause at the thermal power plant.
EPCG’s CEO, Ivan Bulatovic, also stated that electricity prices are not expected to change in the short term but acknowledged that future adjustments might be necessary. He explained that the current market price of electricity is around 100 euros/MWh, while end users pay approximately 45 euros. This price gap is sustained by profits from electricity exports, particularly in years with favorable hydrological conditions and full production capacity. Over time, however, electricity pricing in Montenegro will need to align with European Union averages as part of the country’s EU accession process. While such adjustments are not expected in the immediate future, an increase in electricity prices for end users is anticipated in the longer term. The ongoing reconstruction of TPP Pljevlja will not impact electricity prices this year.
The overall cost of the ecological overhaul of TPP Pljevlja, including the rerouting of the Cehotina River and the purchase of substitute electricity during the downtime, is estimated at around 170 million euros.
