Serbia’s state-owned power utility, EPS, spent approximately €370 million on electricity procurement in the first nine months of 2024, a significant increase from €213 million during the same period last year. The rise in procurement costs was driven by a 10% increase in electricity purchased from privileged renewable energy producers and a threefold jump in market procurement compared to 2023.
For the first nine months of this year, EPS reported a net profit of €256 million, a sharp decline from €800 million in the same period last year. The company faced rising electricity procurement and system access costs, totaling €610 million in the first half of 2024, with an additional €426 million spent in the third quarter. These costs surged during July, August, and September, due to increased electricity consumption caused by high temperatures.
EPS General Director Dušan Živković acknowledged the challenges faced in the third quarter, including record-high electricity consumption, underperformance of hydropower plants, difficulties in coal production, and soaring electricity prices. In particular, consumption in July reached historic levels, while coal procurement was challenging due to high temperatures and demanding conditions in the open-pit mines. Moreover, electricity prices in all markets rose significantly, adding further strain.
The company also spent €228 million on coal procurement in the first nine months, with €149 million spent in the first half and €77 million in the third quarter. Coal was sourced from neighboring countries and Indonesia, with a total of 8.08 million tons contracted. The average price for delivered coal, including handling and customs duties, was €90.77 per ton during this period.
Revenues from electricity sales reached approximately €2.73 billion, with total operating revenues of around €2.79 billion. While these figures exceeded planned targets, they were lower than last year’s total revenue of €3.21 billion, primarily due to a 20% reduction in electricity prices for businesses in May 2024. Electricity prices for households remained unchanged compared to last year.
Despite the challenges, EPS’s total financial result for the first nine months exceeded expectations by 31%. Živković pointed out that this outcome is significant even when compared to last year, which benefited from higher compensation prices for EDS and EMS losses. He also noted that coal production in the first nine months was on target, with Kolubara’s Field G and Tamnava-West Field mines exceeding production expectations.
In terms of electricity production, despite challenging hydrological conditions, the hydro sector accounted for 34.5% of total output. Thermal power plants contributed 64.4%, and gas-fired Panonske TE-TO accounted for 1.1% of total production.
