Montenegro's regulator proposes a 15% lower transmission charge for 2027–2029 after CGES surplus

Montenegro's Energy Regulatory Agency (REGAGEN) on 2 November adopted the reports analysing the applications of transmission operator Crnogorski elektroprenosni sistem (CGES) and distribution operator Crnogorski elektrodistributivni sistem (CEDIS) for setting regulated revenues and tariffs for the period from 1 January 2027 to 31 December 2029. The documents have been published on the agency's website, and comments can be submitted until Tuesday, 17 November.

The numbers. According to the daily Vijesti, which cites the drafts, the transmission component of electricity bills could fall by about 15% and the distribution component by about 7%, which could cut the total bill by 5–6%. The main reason is the CGES surplus: in 2022–2025 the operator collected EUR 107 million more than its approved revenue from fees for the use of its lines and the subsea cable to Italy, and the rules require this excess to be deducted from tariffs in the following period. For CEDIS, the regulator would cut part of the amounts for investment and for new smart meters.

EPCG's role. Elektroprivreda Crne Gore, which accounts for about half of the bill, can change its active energy component on its own and has not done so for 17 years. According to Vijesti, the company could raise it by the amount cut from CGES and CEDIS, citing the difficult energy situation and the large investments it has launched, so that the final price formally stays the same. The paper also writes that CEDIS is likely to appeal the cuts to its investment plan.

The regulator's position. REGAGEN said comments made during the consultation may change the final revenues and that it cannot yet estimate the effect on consumer prices: "Giving any estimate of prices would conflict with REGAGEN's obligation to set the regulated revenue within the statutory deadline." According to financial statements cited by Bankar.me, CGES posted a net profit of EUR 19.3 million in the first nine months of the year, 15.8% more than a year earlier, on total revenue of EUR 78.84 million.

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