Montenegro’s biggest industrial producer KAP shuts down after energy price hike

Montenegro’s biggest industrial producer KAP shuts down after energy price hike
By Denitsa Koseva in Sofia January 2, 2022

Montenegro’s Uniprom has shut down the country’s sole aluminium smelter, KAP, with the procedure being completed by December 30, after it failed to reach an agreement on a new electricity price with power company EPCG, public broadcaster RTCG reported.

Uniprom warned earlier that it would close KAP as rising electricity prices make its production uneconomic. Uniprom’s owner, local businessman Veselin Pejovic, accused EPCG of being responsible for the decision, while EPCG asked the businessman to hold another round of talks to find a solution.

By the end of 2021, KAP was paying €45 per MWh plus VAT, while on international markets the electricity price is now around €250 per MWh. 

KAP’s contract with EPCG expired at the end of the year. EPCG requested a price of €183 per MWh as of January 2022 so that it will not suffer financial losses. However, KAP’s owner said it cannot afford to pay this price.

The closure of KAP is leaving 500 people without jobs, which is significant for the country of 620,000 people. KAP’s workers are seeking guarantees from the government that they will receive two unpaid monthly wages.

In December, Pejovic, submitted a proposal to transfer KAP to power company EPCG for one year in the latest move in the dispute between the two companies regarding the price at which EPCG will sell electricity to KAP in 2022. 

However, EPCG said it was not registered for aluminium smelting and the board of directors has no authority to amend the areas of activity of the company, as this can only be done by the shareholders. EPCG did, however, say it was willing to provide an additional discount to KAP for 2022 in order to secure the smelter’s operations.

This is not the first time KAP and EPCG have had disagreements. In 2016, KAP decided to end its contract with EPCG and import cheaper electricity from the Slovak company LE Trading. However, in 2017, a three-year contract with EPCG was signed at electricity price of €38.9 per MWh.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Content

Experts argue EU’s New Growth Plan is too small to make a difference

COP28: The EU's climate goals and the Western Balkans challenge

Heavy snowfalls leave half Bulgaria without power

News

Arkadag, Turkmenistan’s “Man City”, blitz league in debut season

Backed by the regime, new club signed most of their rivals’ best players and won all of their matches in march to title helped along by some most fortunate refereeing.

Moscow sees most snowfall in one day since records began

Moscow experienced an unprecedented snowfall on December 3, setting a record as the heaviest in the city's 145-year history of weather observations.

Zelenskiy video appeal to Congress for more help cancelled as Republicans present Biden with funding ultimatum

An appeal Ukrainian President Volodymyr Zelenskiy had been due to make to the US congress for more money via video link on December 5 was cancelled at the last minute as the Speaker of the House issued an ultimatum to US President Joe Biden

Western brands’ adverts fund Russian disinformation in Southeast Europe

Disinformation poses threats to stability and democracy and contributes to tensions and violence in the multi-ethnic communities of Bosnia and Kosovo, says report by Balkan Free Media Initiative and CRTA.

Hungarian economists say CPI figures are distorted by change in methodology

Economists suspect figures are being massaged to improve economic picture.

Arkadag, Turkmenistan’s “Man City”, blitz league in debut season
3 hours ago
Moscow sees most snowfall in one day since records began
12 hours ago
Zelenskiy video appeal to Congress for more help cancelled as Republicans present Biden with funding ultimatum
14 hours ago
Western brands’ adverts fund Russian disinformation in Southeast Europe
14 hours ago
Hungarian economists say CPI figures are distorted by change in methodology
14 hours ago

Follow Us On

Most Read

  1. Top Ukrainian politician David Arakhamia gives seventh confirmation of Russia-Ukraine peace deal agreed in March 2022
    10 days ago
  2. Armenia marks new era with French military purchases
    8 days ago
  3. LONG READ: The boomerang effect: sanctions hurt Europe more than Russia
    5 days ago
  4. Putin's approval rating up to 85% in November, Russians happy with the country's direction
    2 days ago
  5. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    1 month ago
  1. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    1 month ago
  2. Top Ukrainian politician David Arakhamia gives seventh confirmation of Russia-Ukraine peace deal agreed in March 2022
    10 days ago
  3. Russia overtakes Germany to become fifth biggest economy in the world in GDP on a PPP basis
    3 months ago
  4. Armenia marks new era with French military purchases
    8 days ago
  5. Lavrov confirms Ukraine war peace deal reached last April, but then abandoned
    2 months ago

Reports

SELECT `n`.`nid` AS `id`, `n`.`title`, 'bne IntelliNews' AS authors, 'bne IntelliNews' AS bylines, `wc`.`field_website_callout_value` AS `summary`, `smc`.`field_social_media_callout_value` AS `social`, `pd`.`published_at` AS `date`, `p`.`field_publication__tid` AS `publication_id`, `fm`.`uri` AS `image`, `fspcaption`.`field_story_photo_caption_value` AS `image_credit`, `fspcredit`.`field_story_photo_credit_value` AS `image_author`, `ws`.`field_website_sections_tid` AS `section_id`, `fdfs`.`field_subject_tid` AS `subject_id`, `db`.`body_value` AS `body`, `fm2`.`uri` AS `pdf`, `et`.`field_enable_tracking_value` AS `tracking`, `ht`.`field_head_tags_value` AS `headTags`, `bt`.`field_body_tags_value` AS `bodyTags` FROM `node` AS `n` LEFT JOIN `field_data_field_website_callout` AS `wc` ON wc.entity_id = n.nid LEFT JOIN `field_data_field_social_media_callout` AS `smc` ON smc.entity_id = n.nid LEFT JOIN `publication_date` AS `pd` ON pd.nid = n.nid LEFT JOIN `field_data_field_publication_` AS `p` ON p.entity_id = n.nid LEFT JOIN `field_data_field_story_picture` AS `sp` ON sp.entity_id = n.nid LEFT JOIN `file_managed` AS `fm` ON fm.fid = sp.field_story_picture_fid LEFT JOIN `field_data_field_story_photo_caption` AS `fspcaption` ON fspcaption.entity_id = n.nid LEFT JOIN `field_data_field_story_photo_credit` AS `fspcredit` ON fspcredit.entity_id = n.nid LEFT JOIN `workflow_node` AS `wn` ON wn.nid = n.nid LEFT JOIN `field_data_field_website_sections` AS `ws` ON ws.entity_id = n.nid LEFT JOIN `field_data_field_subject` AS `fdfs` ON fdfs.entity_id = n.nid LEFT JOIN `field_data_body` AS `db` ON db.entity_id = n.nid LEFT JOIN `field_data_field_file` AS `ff` ON ff.entity_id = n.nid LEFT JOIN `file_managed` AS `fm2` ON fm2.fid = ff.field_file_fid LEFT JOIN `field_data_field_enable_tracking` AS `et` ON et.entity_id = n.nid LEFT JOIN `field_data_field_head_tags` AS `ht` ON ht.entity_id = n.nid LEFT JOIN `field_data_field_body_tags` AS `bt` ON bt.entity_id = n.nid WHERE (n.status = 1) AND (n.type = 'article') AND (n.nid = 230581) AND (wn.sid= 3) AND (p.field_publication__tid IN (2465,2851,3184,3159,3266,3264,3270,3265,3267,3268,3269,3171,3168,3185,3170,1346,1345,3180,3175,3254,3249,1207,1208,3181,3231,3177,3186,3178,1003,3187,2975,3204,3198,3188,3202,3196,3250,3189,3160,3161,3312,3313,3173,3314,3315,3167,3259,3257,3263,3258,3260,3261,3262,3174,3316,3165,3192,3163,3282,3190,2811,3256,3317,3162,3318,3191,3297,3182,3179,3166,3319,3376,3320,3172,3255,3169,1008,3203,3197,3321,3252,3164,1307,3322,3183,3220,3176,3201,3323,1327,1020,1006,1009,1013,1014,1018,1005,1328,1010,1011,1002,1012,1311,1330,1017,1016,1019,1004,1001,1334,1335,1336,1015,1337,1338,1339,1340,1341,2496,2501,2517,2529,2506,2505,2524,2513,2526,2537,2489,2490,2520,2536,2488,2532,2500,2515,2503,2493,2527,2523,2510,2525,2498,2499,2528,2507,2487,2511,2521,2502,2491,2519,2497,2492,2514,2495,2509,2512,1629,3358)) LIMIT 1
Dismiss