The business result of the Montenegrin Electricity Distribution System (CEDIS) in 2021 was solely the consequence of the global energy crisis, which led to a dramatic rise in electricity prices on the market, as we have publicly stated on several occasions. Therefore, hiring had no impact on the business result, and we categorically reject such claims, which are nothing more than the result of the malicious and false dissemination of information.
For the benefit of the Montenegrin public and our customers, we wish to reiterate the following.
On 14 April, CEDIS submitted its 2021 business results to the Revenue and Customs Administration of Montenegro, without the credit notes that were expected from EPCG for invoices from April to December 2021. As a result, a loss of EUR 9,849,284 was recorded. The credit notes were intended to adjust the invoice amounts for the period in question to reflect the difference between the amount CEDIS paid to EPCG for the purchase of electricity to cover network losses and the amount approved for this purpose by the Energy Regulatory Agency (EUR 52.392 per megawatt-hour). The credit notes would therefore have reduced the invoice total by EUR 10.2 million.
The reported loss would have been eliminated by adjusting the credit notes, which means the Company’s business result would have been approximately EUR 400,000.
The EPCG Shareholders’ Assembly will make the final decision on the credit notes no later than 30 June of this year.
In these highly challenging times, marked by the global energy and economic crisis, management has worked conscientiously, responsibly and with the utmost professionalism, solely in the interests of the company, its employees and its customers. The reported result is therefore not a consequence of poor management, much less of “political hiring”; such statements are nothing but attempts to manufacture scandals for political gain.
The increase of EUR 2.3 million compared with 2020 in expenditure on salaries, salary compensation and other personal expenses—which also includes severance payments, an amount higher than in 2020—is not the reason for the Company’s operating loss. Given that some activities had been outsourced in the preceding period, one of management’s strategic objectives has been to strengthen and rely on its own staff and capacities. The fact that we managed to carry out some activities using our own resources in 2021 confirms that this was the right decision. The results of the Medium- and Low-Voltage Network Revitalisation Project are particularly evident: our crews worked on the revitalisation of 26 power lines. Specifically, this involved 23 km of 10 kV overhead network, where 588 power line poles were replaced, as well as 39 pole-mounted substations and 89 low-voltage networks, where 1,816 poles were replaced. Last month alone, our electrical technicians installed 627 poles as part of the Revitalisation Project. We are very proud of their work, as well as their dedication and perseverance in all emergency situations caused by adverse weather or the activities of third parties.
These are the only reasons for the increase in the number of employees and, consequently, in salary expenses. We are confident that this business policy is in the interests of the company and its employees, and the results have shown that these business initiatives are justified. Accordingly, all claims of political hiring at CEDIS are merely malicious manipulation by those who fail to see the results achieved by the employees who make this company successful—a fact of which management is very proud.
Finally, this management team will continue to work conscientiously and responsibly, looking after the company, its employees and its customers, and will not give in to the wishes of political manipulators.
MONTENEGRIN ELECTRICITY DISTRIBUTION SYSTEM
