Increased stake of EPCG in CEDIS

The shareholders of Elektroprivreda (EPCG) adopted today the proposed decision to increase the stake of that company in the Montenegrin Electrodistributive System (CEDIS).
The decision defines that EPCG brings in funds in the amount of EUR 21.57 million for the financial consolidation of CEDIS, in order to remedy the consequences of disruptions in the electricity market.
“The funds in the amount of EUR 6.7 million refer to the period from April 1 to December 31, 2021, and the amount of EUR 14.8 million to last year and collectively represent the price difference of electricity procurement to cover the regulatory permitted losses at CEDIS“, it was announced from EPCG.
As clarified by that company, it is about technical and not commercial losses.
“Consequently, EPCG’s stake in CEDIS increases from the previous 288.7 to almost 310.3 million EUR,” the announcement states.
At today’s session, the shareholders adopted EPCG’s financial statements for last year with comments and a draft of the BDO auditor’s opinion, according to which the company’s total revenues last year amounted to EUR 541.8 million, of which EUR 522.4 million were business, and EUR 19.4 million were financial. revenues.
EPCG said that total expenses amount to EUR 536.8 million, of which EUR 507.1 million are business expenses, EUR 26.5 are salary expenses, and EUR 1.95 are other business expenses.
According to them, EUR 1.16 million are financial expenses, and net tax costs are almost EUR 731 thousand.
“The realized profit after taxation amounts to EUR 4.28 million”, the announcement reads.
As it is added, in the context of the activities of the independent auditor, i.e. revenue recognition as a key issue of the audit, it was determined that EPCG recognized revenue in accordance with the applied accounting policies, while the information disclosed in the Management Report for last year was harmonized with the individual financial statements, and the Report was compiled in accordance with the provisions of the Law on Accounting.
EPCG said that the consolidated financial statements for last year were also adopted at the session, where it is stated in the profit and loss account that the achieved net result of EPCG Group amounts to minus EUR 8.68 million.
That result, as explained by the company, was caused by extreme disturbances in the electricity market, as well as by an unfavorable hydrological situation.
The shareholders, by a majority of votes, adopted the Report on EPCG’s operations for the past year, in which, along with the above financial indicators, it is pointed out that the total realized production was 2,731.68 gigawatt hours (GWh), which is 13.6 percent less than the realization in 2021 , and 8.7 percent less than the plan for last year.
On the other hand, as pointed out by EPCG, the total achieved consumption by distribution customers was 2,481.6 GWh, which is 105 percent compared to 2021, that is, 102 percent compared to the plan.
“Through long-term and short-term trade, 721.84 GWh was purchased and 889.09 GWh of electricity was sold. As part of covering network losses, 390.20 GWh was delivered to CEDIS, and 137.95 GWh to CGES,” the announcement states.
EPCG said that capital investments in the previous year amounted to EUR 47.3 million.
“Out of the total invoiced realization by suppliers and outstanding claims from previous years, a total of EUR 279.7 million was collected, with a collection rate of 101.43 percent compared to the total invoiced realization last year,” said the company.
According to them, EUR 8.8 million was collected from direct customers, and EUR 2708 million from distribution customers.
At the shareholders’ meeting, the proposal for a decision on the distribution of profit was adopted, where it was stated that the total undistributed profit of the company, as of 31st December last year, amounts to EUR 4.28 million.
“The same is distributed so that EUR 4.24 million goes to undistributed profit, and EUR 42.8 thousand to the reserve fund,” EPCG announced.
The shareholders adopted the Proposal for a Decision on the Determination of the EPCG Remuneration Policy with the Methodology for calculating the variable remuneration of persons with special duties towards the company, which determines the amount of remuneration for the most responsible positions in the company.
“Consequently, the fixed compensation for the chairman of the Board of Directors is 3.50 of the average salary of EPCG earned in the month preceding the month for which the compensation is calculated, and for the chairman of the Board of Directors who is not working professionally in the company, the compensation is 2.50 of the average salary “, the announcement states.
As it is added, the members of the Board of Directors are paid one average salary, and if they are professionally engaged, they receive two average salaries.
“The executive director is entitled to three average salaries, and the other members of the management are entitled to compensation ranging from 1.3 to 2.75 average salaries,” EPCG said.
For the auditor of the Company for the year 2023, and at the proposal of the Government of Montenegro, as the representative of the majority shareholder, the majority of the present shareholders with the right to vote chose the audit firm BDO, which performed the audit work in the past period as well.
At the session, a new EPCG Board of Directors was appointed, headed by Milutin Đukanović.
Mijuško Bajagić, Tahir Đonbaljaj, Ivan Saranović, Milutin Đukanović, Martin Ćalasan, Emir Strujić and Goran Šućur were appointed as members of the Board.

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