Q:
A:
Preparation of tender for purchase of remote electric meters
Belgrade,
2 September 2010
General Manager of Serbia’s electric power industry (EPS) Dragomir Markovic and Director of the European Bank for Reconstruction and Development (EBRD) for Serbia Hildegard Gacek signed an agreement concerning a loan for a project for purchasing remote electricity meters.
Hildegard Gacek and Diana Dragutinovic
Author:
Fonet
Minister of Finance Diana Dragutinovic and Gacek signed a guarantee agreement between the Republic of Serbia and EBRD regarding the project, for which EBRD will provide a €40 million loan.
Addressing a press conference, Dragutinovic said that the total cost of the project is €80 million, adding that it is expected that an agreement will be signed with the European Investment Bank within one month, which will co-finance the project with another €40 million.
These loans will be used to purchase and install over 25,000 remote meters, which will improve efficiency, increase the percentage of paid bills and reduce electricity theft, she explained.
The deadline for paying back the EBRD loan is 12 years, with a grace period of three years. The annual interest rate is six month Euribor plus 1%, which is now 2%, she specified.
Electricity prices are not likely to go up until the end of this year, she highlighted, adding that the Serbian government determines electricity prices on the basis of proposals from the Serbian Energy Agency and a proposal has not been received so far.
Ministry of Energy and Mining Petar Skundric stressed that when making a decision to increase electricity prices, agreed upon macroeconomic parameters and planned inflation rates have to be kept in mind.
Electricity prices also influence the development of EPS, he noted, explaining that a price increase of one Euro cent per kilowatt would increase the value of EPS by nearly €1 billion.
The EPS General Manager emphasised that EPS needs a change in electricity prices but it has not initiated the procedure to increase prices since this step is taken when an agreement has been reached concerning the matter.
Electricity prices in Serbia are the lowest in Europe. Electricity is 40% cheaper in Serbia than in Bulgaria for instance, he observed.
EPS will complete its renovation work within the deadline even without an increase in electricity prices, he announced, adding that power consumption for heating particularly burdens the electricity supply system.
Preparations for calling a tender for the purchase of remote meters will start very soon. The project is expected to be completed in five years, underlined Markovic.
Unauthorised consumers use nearly 4% of the power produced by EPS, which causes a loss of nearly €60 million annually, he pointed out.
Gacek stated that the EBRD has provided a total of €460 million in loans to EPS to date and that the new loan will lead to more efficiency, increased revenues and a reduction in carbon emissions.
To date, EBRD has invested a total of €2.1 billion in Serbia, including the financing of the new EPS project, she concluded.
Addressing a press conference, Dragutinovic said that the total cost of the project is €80 million, adding that it is expected that an agreement will be signed with the European Investment Bank within one month, which will co-finance the project with another €40 million.
These loans will be used to purchase and install over 25,000 remote meters, which will improve efficiency, increase the percentage of paid bills and reduce electricity theft, she explained.
The deadline for paying back the EBRD loan is 12 years, with a grace period of three years. The annual interest rate is six month Euribor plus 1%, which is now 2%, she specified.
Electricity prices are not likely to go up until the end of this year, she highlighted, adding that the Serbian government determines electricity prices on the basis of proposals from the Serbian Energy Agency and a proposal has not been received so far.
Ministry of Energy and Mining Petar Skundric stressed that when making a decision to increase electricity prices, agreed upon macroeconomic parameters and planned inflation rates have to be kept in mind.
Electricity prices also influence the development of EPS, he noted, explaining that a price increase of one Euro cent per kilowatt would increase the value of EPS by nearly €1 billion.
The EPS General Manager emphasised that EPS needs a change in electricity prices but it has not initiated the procedure to increase prices since this step is taken when an agreement has been reached concerning the matter.
Electricity prices in Serbia are the lowest in Europe. Electricity is 40% cheaper in Serbia than in Bulgaria for instance, he observed.
EPS will complete its renovation work within the deadline even without an increase in electricity prices, he announced, adding that power consumption for heating particularly burdens the electricity supply system.
Preparations for calling a tender for the purchase of remote meters will start very soon. The project is expected to be completed in five years, underlined Markovic.
Unauthorised consumers use nearly 4% of the power produced by EPS, which causes a loss of nearly €60 million annually, he pointed out.
Gacek stated that the EBRD has provided a total of €460 million in loans to EPS to date and that the new loan will lead to more efficiency, increased revenues and a reduction in carbon emissions.
To date, EBRD has invested a total of €2.1 billion in Serbia, including the financing of the new EPS project, she concluded.
-
Belgrade, 22 January 2025Egypt one of Serbia’s closest partners on international stage
-
Belgrade, 9 July 2024Support for 104 associations in diaspora that preserve Serbian language, culture
-
Belgrade, 15 April 2024Competition for StarTech grants open until 31 May
-
Belgrade, 2 October 2023Serbia respects Resolution 1244 and will do everything to preserve peace
-
Belgrade, 13 September 2023Day of Serbian Unity to be celebrated outside borders of Serbia, Republika Srpska for the first time
-
Belgrade, 8 August 2023RSD 24.2m in state aid paid out to citizens affected by storm
-
Belgrade, 17 June 2023Belgrade is doing everything to preserve peace in Kosovo and Metohija
-
Belgrade, 15 June 2023Slovenia will continue to support Serbia on its way to EU
-
Belgrade, 5 May 2023Emergency measures, tightening of conditions for possessing weapons
-
Belgrade, 3 May 2023Three days of mourning in Serbia over tragedy at Vladislav Ribnikar primary school