June 23, 2024
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Serbia, EPS needs one billion euros

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Elektroprivreda Srbije (EPS) will have to pay between one and 1.5 billion euros for the import of the missing amounts of electricity during the winter season, and the owner of that company, the Government of Serbia, is still considering how to get those substantial funds.

Due to insufficient quality coal in the mines of the “Kolubara” Mining Basin, accidents that EPS suffered at the end of last year and at the beginning of this year and low electricity production in hydroelectric power plants due to drought, experts predict that this company will lack as much as 2.2 billion kilowatts to supply consumers in the country -hours of electricity, writes Beta referring to Demostat.

During this summer, the electric power system of Serbia faced the lowest inflow of water in the last ten years. Thus, during June and July, the flow was practically halved.

At the “Đerdap” hydroelectric power plants, which under normal conditions cover a quarter of electricity consumption in Serbia, in mid-August the situation further worsened due to the fact that only 2,000 cubic meters of water per second arrived, which, for the sake of illustration, is three times less than the June long-term average, Demostat announced.

Officials point out that, when it comes to HPP “Đerdap”, due to the hydrological situation, this year will be weaker in terms of production, that is, it is expected that it will be less than the average by about 30 percent. And the reservoirs in the Drina-Lim hydroelectric power plant system are half empty, and they provide up to 12 percent of electricity. About twenty days ago, the production in those hydroelectric plants was a third less than that foreseen in the plan.

Such a situation has caused that EPS is already forced to import electricity in a much larger quantity than is usual for the summer period, which is on average about 200 megawatts per hour.

Considering the prices of electricity on the stock exchanges, which reach up to 750 euros per megawatt hour, EPS will need between 1 billion and 1.5 billion euros in order to acquire the quantities it will lack because it will not be able to meet them from domestic production capacities.

What the authorities in the Government of Serbia are now considering is how to provide EPS with the necessary financial resources for the purchase of electricity.

One of the possibilities, as Demostat learns, is for EPS to take a new loan from commercial banks, but in that case it should be taken into account that the company is already heavily indebted, primarily due to accidents and unprofessional management, especially during the period when it is it was headed by Milorad Grcic, who was therefore forced to resign from the position of director.

Another possibility that is being considered is for the Government of Serbia to be the one to provide the company with state guarantees for the loan in order to obtain the necessary funds for normal functioning.

The third option, which, according to Deomstat’s knowledge, is “on the table” is for the Government of Serbia to make an arrangement with the International Monetary Fund, which would mean that this financial organization would be given the right to participate in the management of the EPS.

Demostat’s source states that the decision on which of these three models the Government of Serbia will opt for and provide the necessary funds for the functioning of the EPS has not yet been made.

Let us remind you that on August 30, the Government of Serbia made a decision recommending EPS to increase the price of electricity for the economy by 26.5 percent from September 1, and at the end of July, the Energy Agency approved that company to increase the price for households from the same date. by 6.5 percent, Biznis writes.


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