Obsolete technology and party management produced losses – Economy



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It is necessary to separate production from energy transmission in EPS, but it will not give results if there is no professional management.

To reduce the losses in the transmission system and obtain funds for the necessary investments in the Serbian Electric Power Industry, more rational and efficient operations are needed, but that will not be possible as long as it is managed by non-professional personnel, according to the expert public. in Serbia.

Outdated technology and match management produced losses 1Photo: MIROSLAV DRAGOJEVIC

The Minister of Mines and Energy, Zorana Mihajlović, recently said that losses in the EPS transmission system are around 250 million euros, and that the current values ​​of projects worth 600 million euros are “very small”.

He added that EPS needs to invest more money in the distribution network, as well as in protecting the environment.

Economist Milan R. Kovačević says for Danas that there is room for EPS to improve its business and obtain the necessary money for investments, but the condition for that is that it be managed differently than it is now.

– EPS can reduce losses in the transmission network through better management, eliminating the possibility of theft and non-payment of electricity. There are other segments of the business where streamlining can occur. However, to enable such a process, it is necessary for the company to be directed by professional management and not party cadres who are not capable of leading it in a valid way – points out our interlocutor.

According to him, it is not debatable that the distribution of electricity as an activity should be separated from the EPS, and that this is the case in other countries as well.

– It is common for there to be an intermediary or supplier between the electricity producer and who distributes it to the citizens. Consequently, it can also exist in Serbia. However, the fact that the distribution is spread in itself does not mean better business results. How this business will be run and whether it will achieve its basic purpose, which is the efficient harvesting of electricity from all consumers, is important, says Kovacevic.

Professor Ljubodrag Savić at the Belgrade Faculty of Economics points out to Danas that losses in the transmission system at EPS are the cause of outdated technology at that company.

– Due to obsolete equipment, losses are greater. To achieve the necessary investments and the profitable business of EPS, it is necessary to organize this company based on the market in order to fulfill its function, which is to supply electricity to consumers. But, to achieve this, it is necessary to free it from state tutelage. It is necessary to stop the practice of emphasizing, when it suits the authorities, that electricity in Serbia is the cheapest in Europe, and then, on the other hand, when it is necessary to say that the price of electricity is low and there is not enough money for the necessary investments. This must be stopped and the business can be validly run. This means that the price of electricity for consumers is a market category and, as such, must be paid in full, and that the State is obliged to subsidize the price of electricity for social categories so that its existence is not see compromised. Only in this way, EPS can successfully and efficiently perform the role assigned to it, concludes our interlocutor.

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