Electricity bills may become more expensive in several areas of the country. Montenegro prepares bases for new tax created by Costa – Executive Summary

When we turn on a switch, or turn on an appliance, and receive the bill at the end of the month, we pay not only for the electricity we consume, but also a series of 'economic interest costs', sums and fees that are paid to the EDP, the REN and the Competition Authority. Also in the bill is the audio-visual contribution, which funds the RTP, but soon the “fees and fees” won’t stop there.

The government of António Costa introduced a new price for electricity tariffs to cover the new cost of public economic interest (CIEG). This cost will be borne by consumers and will benefit municipalities that host or pass through strategic electrical infrastructure. This decision, as stipulated in Decree-Law No. 18/2024, issued on February 2, will result in an initial amount of 12 million euros, according to Popeko, which will be borne by consumers. The Energy Services Regulatory Authority (ERSE) calculated this value based on a list of eight “high-impact strategic electrical projects” that include several high-voltage lines and other electrical infrastructure from the north to the south of the country.

ERSE explained that the method of payment and the impact of these amounts on tariffs depends on a decree to be issued by the member of the new government responsible for environment, climate action and territorial cohesion, after consultation with ERSE and the Portuguese National Association of Municipalities (ANMP).

These compensations arose following disagreements and opposition on the part of some municipalities to the establishment of electrical infrastructure, as was the case in the municipality of Mondheim de Pasto regarding the Vieira-Ribera de Pena high-voltage line. These municipalities have raised concerns about potential health issues, quality of life, tourism, and impacts on the local landscape.

The decree law specifies the amount of compensation as “1% of the value of the direct external costs of the investments that justify it, in the case of substations, transformer stations, and other investments,” and “5% of the value of the direct external costs of the investments that justify it, in the case of substations, transformer stations, and other investments.” Investments. Direct external costs of investments that justify this, in the case of airlines.

ERSE stressed that this measure “enables the development of infrastructure necessary for the energy transition,” but acknowledged that future strategic projects could generate additional tariff impacts.

Municipalities will have to submit to the National Electricity Grid (REN) a list of “negative local externalities” that are not minimized or compensated for through statutory EIA tools. Compensation will be allocated through a protocol between the municipality and the electricity network operator.