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<\/p>\n– As an example, I would cite 35mm2<\/sup> Al\/Fe conductor, which cost around \u20ac2.75 excluding VAT before this price increase, and now costs around five euros excluding VAT. This price increase directly affects our procurement of materials, which in turn affects the maintenance of the electricity distribution system itself. If materials are in short supply, the network cannot be maintained, and maintenance is fundamental to the reliability of the power supply<\/em> \u2013 Vuki\u0107evi\u0107 points out.<\/p>\n There are currently no indications of shortages of any particular materials or equipment, but if the current situation persists, this possibility cannot be ruled out, as a significant number of manufacturers are reducing production.<\/p>\n – Our main problem at present is not shortages, but the unrealistic price of certain materials. This makes the economic viability and justification of investments highly questionable if all planned projects are carried out at these prices. Not to mention that first COVID and then the current crisis have driven up all other prices along the supply chain, and similar problems have affected almost every sector of production, distribution and transport. In maintenance, we are currently experiencing problems with conductor, aerial bundled cable, suspension equipment for aerial bundled cables and reinforced-concrete poles<\/em> \u2013 Vuki\u0107evi\u0107 says.<\/p>\n The status of the framework agreements concluded by CEDIS last year is also a serious problem, as suppliers are withdrawing from contracts at the prices agreed at the time. These contracts cover aerial bundled cable, reinforced-concrete, wooden and steel lattice poles, insulators, transformers, transformer substations, etc. A similar situation applies to contracts covering construction works for the construction of facilities, network maintenance works, facility security services …<\/p>\n – Prices for electrical materials and equipment, as well as construction materials, have risen by 40 to 100 per cent, and prices for works and services have followed suit, albeit to a slightly lesser extent. As a result, suppliers are generally requesting contract amendments that would increase prices so they can fulfil the contracts without incurring losses. The Public Procurement Law provides for the possibility of amending a public procurement contract if the need for the amendment has arisen due to circumstances that the contracting authority could not have foreseen when concluding the contract. The amendment does not change the nature of the contract, and the increase in value may not exceed 20 per cent of the original contract value. It should be noted that a number of framework agreements and contracts were concluded under the previous Public Procurement Law, which did not provide for the option of amending a public procurement contract by up to 20 per cent. In such cases, the contracting authority has limited options<\/em> \u2013 said Milutin Kusovac<\/strong>, Head of the Commercial Sector at CEDIS.<\/p>\n CEDIS is making extraordinary efforts to sustain investment activity under the current conditions and, going forward, to ensure customers have a high-quality and reliable electricity supply. When considering requests to amend existing contracts, CEDIS seeks, within the legal framework, to find a sustainable solution for both parties, since the consequences of terminating contracts would further deepen the current crisis, both for suppliers and for the company.<\/p>\n – The preparation of documentation and implementation of tenders have also become more complicated to a certain extent, because prices for materials, equipment and works change over short periods. CEDIS is seeking to adjust the estimated values of public procurements to current market conditions, so potential bidders are asked to submit indicative offers and the deadline for submitting bids is shortened. In effect, the aim is to conduct thorough market research and shorten the period between the publication of a public procurement notice and the conclusion of a contract<\/em> \u2013 Kusovac concluded.<\/p>\n CEDIS is therefore taking all measures within its remit to cushion the negative effects of the current crisis. However, systemic support is also needed to find a solution as quickly as possible, including amendments to regulations, so that these circumstances can be overcome with minimal consequences for the system and users of the electricity distribution network.<\/u><\/p>\n By way of reminder, sharp increases in electricity market prices began in the middle of last year, and following the Ukraine crisis, price volatility has rapidly spread to almost all international goods and services markets. CEDIS invests tens of millions annually in the construction of new facilities and networks, and procures electrical materials and equipment worth millions to maintain the electricity distribution infrastructure.<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Corporate Communications Service \u2013 CEDIS<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Over the past few months, prices for electrical materials and equipment essential to the operation of the electricity distribution system have risen significantly due to the global crisis. Prices, which are already high, continue to rise, while the Public Procurement Law does not provide for adjustments that would address current market disruptions. Vuko Vuki\u0107evi\u0107, Head<\/p>\n","protected":false},"author":1,"featured_media":1268,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[129],"tags":[],"class_list":["post-9039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news"],"acf":[],"yoast_head":"\n