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RAE Methodology started to implement

16/01/2018

The Methodology for determining the regulatory allowed revenue and prices for use of electricity distribution system began to implement as of January 1, 2018.

In addition to contracting power with a distributor on an annual basis, it also allows contracting on a monthly basis, which is very important for the companies which operate during a season. Moreover, the range of allowed deviation of contracted power increased in relation to the envisaged range. Therefore, instead of the envisaged - 10/+ 5%, it will amount -30/+30%, which represents an easier implementation of this regulation through the plans provided by the companies through the contracts.

Since November 2016, the Chamber of Economy of Montenegro had an intensive communication with the Energy Regulatory Agency about this Methodology. The business community also took part in these activities and presented practical examples at the meetings organized by the Chamber. 

With respect to the original text of this Act, drafted by the Agency in line with the obligation provided in the Law on Energy, our joint analysis of the effects of the implementation resulted in amending certain provisions in order to make the Methodology more favorable for the companies, which it relates to, without endangering its goal – preserving the safety and quality of the energy system and energy supply.

Both institutions i.e. the Chamber of Economy of Montenegro and the Energy Regulatory Agency, also cooperated in this period in terms of monitoring the implementation of the Methodology in order to comprehensively and realistically consider the effects of its application through practice and further, if necessary, make an alignment, which also provided results.

The Chamber of Economy of Montenegro invites the companies, which have not done this, to sign the contract with a distributor in compliance with the new Methodology.