Why was Serbia’s electricity distribution (EDS) in a loss of almost 60 million euros? – Economy
The state-owned company Electrodistribucija (EDS) completed last year with a loss of as much as 6.9 billion dinars, or almost 60 million euros. It is six times more than 2023. year, when the loss amounted to about 10 million euros.
If the financial report was published on the company’s website, it can be seen that the costs of materials, fuels and energy are even lower than they were in 2023, as Europe was able to deal with the energy crisis, and at the same time electricity prices.
These costs fell from about 60 billion dinars in 2023. at about 47 billion dinars, or about 13 billion dinars, so that unstable energy prices are no longer the reason for the loss of EDS, as was the case in 2023. Years.
However, the main reason why in 2023. year was not so pronounced that EDS was financially assisted by state intervention in the observation of short-term interest in the amount of 12.9 billion dinars (about 110 million euros), which was then registered as income.
This type of « state infusion » was absent in 2024. years, and the loss of this year is more visible.
However, the EDS has increased most of other costs, among other other costs of depreciation. In 2024. years, the EDS reported depreciation in the amount of 21.6 billion dinars, which is an increase of more than 2.2 billion compared to 2023. Year.
The costs of employees for employees for about a billion dinars increased, although there was a decline in the number of employees from 8,626 at 8,399.
The costs of production services for as much as five billion dinars are also increased, which usually include network maintenance services, engagement of external contractors for construction or modernization of infrasturktura, IT services, transport services …
An interesting data from EDS report is that the cost of meter reading in 2024. increased to 2.8 billion dinars, with 1.8 billion in 2023. years.
A poor financial result also affected the decline in income. The operating income from 115 billion dinars were also fitted in 2023. at 107 billion dinars in 2024. Years. Financial revenues from 1.2 billion dinars at 564 million dinars have also fallen.
EDS still has problems with online losses due to the old infrastructure, although this loss was slightly smaller compared to 2023. year. Realized electricity losses in 2024. year amount to 3,127,536 MWh or 10.37 percent of the total electricity taken. Losses are smaller compared to losses in 2023. years (10.85 percent) by 0.04 percentage points.
Over 27 million megawatt-hours of electricity were delivered, which is a growth of 2.76 percent compared to 2023. year.
« Poor EDS’s Social Peace Price Required »
Eneretic expert and representative of the Association of Energy Energy of Serbia explained for today that EDS and Electricity of Serbia (EMS) have regulated income from the fee that we popularly « networking », which represents the fee for use and access to the system.
This income is not formed market, but approved by the Energy Agency through a detailed regulatory procedure.
« The goal is not for the EDS profits, but to operate sustainably, with a minimum network, because all citizens pay for the mesh and it is not a goal of money at us, » Markovic explained.
He reminded that in 2014, he participated in defining the maximum approved revenue for EDS, which was about 77 billion dinars at the time.
However, as it considers inflation of about 48 percent of 2014. To date, the current maximum approved income should be around 116 billion dinars. However, the current EDS income from the mesh is only about 90 billion dinars.
« If we compare the terms of 2014. With today, the EDS has significantly less funds than it should. It is the main reason for financial problems, » Markovic pointed out.
As a second reason for a bad EDS financial result, Markovic stated what the network of transmission systems participates in their costs, which goes to the EMS.
« EDS charges the overall mesh and for the transmission system operators, and then the EMS transferred in the laptop, so that the EDS would also increase the prices, but their state should not for social peace, » I said Markovic.
He also pointed out that he does not preclude the possibility of internal problems in leadership and organization, but it still considers that the root cause of the current situation lies in economic imbalances.
« Without desire to abolish some mistakes and manner, I don’t really see that it is the basic reason to be insufficiently a bundle of an efficient organization and work, and there may be some improvements, » Markovic said thereby.
As a main reason for a poor financial result last year and from the electricity distribution of Serbia, they state less income, because the price of the mesh, as they stated, has not increased from 2021. years.
« Income from the meshreen, which is the basic source of revenue from 2021. years, while the EDS has launched a significant network. Electocodistribution of Serbia operates all activities and tasks and the company account is not in the blockade, » they replied for today from EDS.
How are EDS projects funded?
It is interesting that a good part of the important investments of EDS is financed from the republic budget, but the part of the burden is taken over by EDS through credit for credit.
The EDS report states that the modernization of measuring infrastructure on DSEE (distribution system of electricity), replacement of measuring devices (meters and measuring groups), and new United States and to replace the distribution areas: Belgrade, Novi Sad, Kraljevo, Niš and Kragujevac and that the funding of the mentioned project is performed from the budget of the Republic of Serbia.
In addition to the above, during 2024. year from the Funds of the Budget of Serbia, projects of procurement of distribution transformers were also financed.
The project of automation and modernization of the medium voltage distribution network, continued during 2024. year, part of the implementation funded from the budget of the Republic of Serbia, as well as a clever meter project that is financed from the credit line with the EBRD.
The first phase of the project Automation and modernization of distribution network financed from the conclusions of the Serbian government, where funding is made from the Funds of the Loan between the Republic of Serbia and Bpifrance Assurance Export, in the financial statement of the EDS.
When asked, what the EDS burden, when it comes to modernization if a good part of the project is financed from the budget, Markovic replied that he has been funded projects, and that the EDS is in charge of crediting between 10 and 15 percent of loan participation.
« Thus is also the same in the case of EPS. EPS, for example, also participated in the desulphurization loan or to build a solar power plant, and affects the entire account, » Markovic explained.
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