Distribution a separate company as of May

#MontenegrinPowerDistributionSystem() #ElectricPowerCompanyOfMontenegro(Epcg) #DistributionUnit #Separation #NewCompany

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Functional Unit Distribution of the Electric Power Company of Montenegro (EPCG) is to operate as a separate company as of 1 May under the name Montenegrin Power Distribution System (CEDIS), after that decision is verified at an extraordinary shareholders’ meeting scheduled for 27 April.

Executive manager of Functional Unit Distribution Zoran Djukanovic said that the legal, economic and technical activities aimed at separation were ongoing. He said that most of the preconditions for independent operations were created and that some of them would be created during the establishing of the new company, which is to take over some of the roles of the parent company.

“The new company is to remain owned by EPCG and its founder is EPCG’s Board of Directors. We will not have a shareholders’ assembly, but we will make most of the decisions. Procurements are returned to the Distribution, whereas talks about IT department issues are ongoing”, Djukanovic said to the Elektroprivreda journal, adding that all important decisions will be made by a five member Board of Director of the Distribution.

“Setting up the new company and reorganising it will not affect the status of employees. The company continues to comply with a valid EPCG’s collective agreement, until the new one is signed”, he said adding that the relations with the trade union will be defined in the process of transformation, with possibility for a Distribution’s trade union to be set up. The ongoing process of business rationalisation will be continued.

He said he expected new suppliers to appear in the market. However, establishing of the distribution system operator is not the only reason for that. After the latest fall of the electricity price in the market, new suppliers who will be able to compete with EPCG may appear.

Source: Cafe Del Montenegro