Despite illegal construction and consumers connecting themselves to the distribution network without authorization—an issue our company has been addressing for some time—the Montenegrin Electricity Distribution System recorded network losses of 9.76 percent in August. This figure shows that the level of losses was 0.63 percentage points lower than in the same period of the previous year, when they stood at 10.39 percent.
When comparing losses for the first eight months of this year and the previous year, it can also be noted that they are almost one percentage point lower this year. Losses for the first eight months of this year amounted to 10.85 percent, or 221,946.353 megawatt-hours (MWh), while losses for the same period last year amounted to 11.81 percent (241,533.762 MWh). Multiplying the savings of 19,622.78 MWh by the average MWh price on the reference HUPEX exchange (€116.89) gives a total saving of €2,293,706.98.
Furthermore, compared with previous years, the savings achieved in the first eight months of 2023 amounted to €3,419,460.83 compared with 2021, and €4,804,824.80 compared with 2020.
The key factors contributing to the recorded reduction in the percentage of energy losses were the actions carried out by CEDIS’s Metering Sector, primarily the campaign targeting illegal consumers, the campaign to control losses in transformer areas, and the AMM Phase III Expansion Project. These Metering Sector actions were accompanied by significant investments in the network at all voltage levels, particularly the revitalisation of the medium- and low-voltage networks, the reconstruction of the low-voltage network, the start of preparations for the implementation of the SCADA system, and other activities within CEDIS.
During the period in which the percentage of energy losses declined, the Metering Sector submitted more than 8,000 cases to the relevant CEDIS services as part of the campaign targeting illegal consumers. The campaign involves field inspections to identify illegal connections, recording them, and registering them in the database of illegal consumers. Since the second half of last year, these activities have brought a large number of consumers with illegal connections into the regular billing system for energy consumed. This has increased the energy accounted for in numerous transformer areas, resulting in a lower percentage of losses.
We note that if all consumers who had connected themselves without authorization had been activated in the supplier’s database during this period, losses for 2022 would have been 0.36 percentage points lower, at 11.26 rather than 11.62 percent. Losses for the first eight months of this year would have been 0.32 percentage points lower, at 10.53 percent, compared with the current 10.85 percent, or 221,946.353 MWh.
From the beginning of last year through September of this year, the loss control campaign—which involves detailed inspections of transformer areas and identifying all possible irregularities at metering points—resulted in approximately 400 assessments of unauthorised consumption. The unauthorised consumption assessed for that period amounted to 7,975.964 MWh.
In addition to assessments based on irregularities identified during inspections, the reduction in the percentage of losses was also affected by the relocation of a large number of metering points where no specific irregularities had been identified but which had been flagged as potentially suspicious through logical checks.
Furthermore, work under the AMM Phase III Expansion Project, which began in August 2022, has seen more than 13,000 metering points relocated (as of the current month), positively affecting the reduction of energy losses in the selected transformer areas.
“Illegal construction also means illegal connections and losses on the electricity distribution network. Existing infrastructure is subjected to unplanned loads, increasing maintenance costs and reducing the impact of investments. In the field, identifying illegal connections and bringing them within the framework defined by law is a painstaking process that also requires the involvement of a significant number of employees. For CEDIS, particularly amid the current global uncertainty in energy markets and unprecedented increases in the prices of electricity network maintenance equipment, all of this represents a serious financial burden. Furthermore, addressing this deeply rooted and widespread problem requires systemic support which, in my view, is neither sufficient nor consistent. In light of these negative aspects, I believe that the results achieved are particularly valuable.” – said Vaso Zeković, Head of the Metering Sector at CEDIS.
