Montenegro’s Energy Regulatory Agency (ERA) has determined that the country’s electricity transmission system operator, CGES, should refund €34.7 million to consumers, following an overcharge on cross-border capacity fees, particularly for the Italy-Montenegro electricity cable, in recent years. However, only about €9.5 million will be returned to consumers in 2025 through a reduction on electricity bills, with the remainder to be refunded in subsequent years.
This refund comes after the regulator also approved an increase in the allowed revenues for the electricity distribution system operator, CEDIS, amounting to approximately €13.5 million starting next year. This increase, coupled with the CGES refund, will result in a slight rise in overall electricity prices from January 2025. However, if the state-owned utility EPCG does not raise its rates, the price increase should be modest. EPCG has not significantly changed its electricity rate in the last 15 years.
The ERA is expected to finalize decisions on the regulatory revenues of energy companies by the end of November, which will outline how these changes will impact different consumer groups and the final electricity price.
While EPCG has the right to adjust its energy rates in response to market disruptions and rising costs without approval from the ERA, the company has yet to announce whether it will raise its billing rates. A key factor in the decision is the planned eight-month closure of the coal-fired Pljevlja thermal power plant for reconstruction in 2025. During this period, Montenegro will become a significant importer of electricity, with prices potentially reaching up to three times the current rates charged by EPCG.
The ERA’s report also states that CGES will reduce its charges for transmission capacity by 5.59% for consumers with two-tariff meters (0.4 kV) and cut 1.7% for justified losses in the transmission network. These reductions are expected to lower the final electricity price by less than 2%.
