Focus on Energy, 2010 - Karanovic & Nikolic

operation and functioning of grids;tionthat they operate; 1 of energy; andoperators, traders and suppliers of energy.OTHER REGULATORY BODIESOther bodies in the energy sector include the Ministry for Environmental Protection and Spatial Planningwhich decides on the issuance of the permits and licenses that are necessary for the constructionof energy facilities and for the issuance of environmental protection permits and licenses. With regardto energy facilities that use or dispose of water, the Ministry of Agriculture and Water Management isin charge of the issuance of water management permits which define technical and other terms underwhich these facilities are allowed to use water.Public EnterprisesEPCGThe EPCG is the public enterprise for both the generation and the distribution of electric power. TheEPCG is currently the only producer of electric energy in Montenegro and it operates the entire nationalinfrastructure for the production of electricity including the TPP “Plevlja”, and the 2 hydropower plantsPerućica and Piva. The EPCG is also the operator of the national distribution grid and holds the licensesfor supply and trade of electric energy. In its capacity of the operator of the distribution grid, the EPCGissues the distribution grid code. The distribution grid code regulates the operation of the distributionsystem and the conditions for the connection and use of the grid (the “Grid Code”). Neverthelesswithin one year of the Energy law being adopted, the operator of distribution grid is to be a separatelegal entity, i.e. separated from the EPCG.In 2009 the Montenegrin Government sold 43.7% shares in EPCG to the Italian company “A2A S.p.A”.55% of the shareholding in EPCG is still held by the Montenegrin Government and the remaining of 1.3%is held by a variety of minority shareholders.PUBLIC ENTERPRISE “PRENOS A.D.” (“PRENOS”)Prenos operate the national transmission network and acts as the operator of the organized market ofthe electric energy. In its capacity as the operator of the national transmission grid, Prenos issues thetransmission Grid Code which governs the technical and other terms for the connection and use of theMontenegrin transmission grid. Additionally, through the capacity of market operator, i.e. entity responsiblefor operation and functioning of electricity market, Prenos issues market rules by which it regulatesthe operation and the functioning of electricity market. Nevertheless, the market operator as a separatelegal entity should be established by the Government. Once it is established, Prenos shall no longerhave the function of market operator, which was originally conferred to it by the Energy Law.75FOCUS ON ENERGYPrivate SectorENERGY FINANCING TEAM (HOLDINGS) APS (‘‘ENERGY FINANCING’’)Energy Financing is a Danish energy company with significant activities in the energy markets in a numberof ex-Yugoslav countries. It has investments in Bosnia and Herzegovina and it has planned investmentsin Serbia and Macedonia). Energy Financing holds a license for the supply of electricity. At present,it is the only fully private entity apart from EPCG to have obtained the status of a supplier of energy.1 Tariff buyers are buyers that purchase energy on basis of regulated prices. They do not have right to choose supplier but are being supplied by thepublic supplier. This category, generally, encompasses households