MANS warns of the adverse consequences of the implementation of the Law on Free Access to Information
Electric Power Company of Montenegro (EPCG) spends tens of millions of Euros annually on electricity import, but who, at what price and under what conditions supplies it with this electricity, it is still under the veil of secret.
The Network for Affirmation of NGO Sector (MANS) attempted to obtain this information based on the Law on Free Access to Information. MANS requested from EPCG to submit all purchase and sale agreements for electricity that were finalized in 2017.
EPCG, however, rejected their request and declared contracts with electricity retailers a business secret. Since last year, this is possible due to the amended Law on Free Access to Information, which allows state institutions and companies to hide data more easily, even those that show in what way the money of all citizens is spent.
EPCG considered that electricity purchase contracts constituted a business secret and referred to the Article 14 paragraph 1 of the Law on Free Access to Information, which stipulates that a government authority may restrict access to information or part of the information if the information is a business or a tax secret in accordance with the law.
MANS is particularly concerned that the energy sector in Montenegro is particularly vulnerable to corruption, and any denial of even the most basic information can stimulate the spread of corruption.
MANS has already warned of a possible brokerage practice in the energy market when in 2012 it discovered that EPCG paid over €228 million for electricity imports in the past four and a half years. More than half of this money was received only by two companies of energy businessmen and former business partners, Vuk Hamović and Vojin Lazarević. Back then they pointed out that the electricity was bought from EFT and Rudnap at the highest average price compared to other purchasers. Hamović’s EFT and Lazarević’s Rudnap received €125.8 million from the sale of electricity to EPCG. Of that amount, Hamović received €92.9 million, while Lazarević received €32.9 million.
EPCG explained this decision stating that publication of the contract would lead to a violation of trade and other economic interests due to which the company would suffer damage. In addition, EPCG stated that the contracts also apply to the other contracting party and that the disclosure of the requested information would jeopardize the interest of the companies they had business with. Given that these are the facts concerning their business, they could request EPCG to protect their rights in the court, in which case EPCG would suffer damage – Executive Director of EPCG Igor Noveljić stated in the explanation of the decision on rejecting the request of MANS.
However, according to MANS, EPCG should submit electricity purchase agreements, because citizens have the right to know from whom and at what price the electricity is purchased because, first of all, they pay for that electricity, but also because EPCG is a state-owned company whose business must at all times be subject to public control. This is primarily because from EPCG’s reply it can undoubtedly be concluded that the company’s management has decided to subject the public’s right to know to interests of the companies from which it purchased electricity, Snežana Bajčeta from MANS warns.
She further adds that this behavior of state institutions and companies is getting more common, primarily thanks to the mentioned amendments to the Law on Free Access to Information.
– According to international standards, the publication of agreements between public and private companies is unequivocal in the public interest, Bajčeta says, adding that it is therefore urgent that the existing Law on Free Access to Information be amended and aligned with those standards.
D.M.
In the past year, due to poor hydrological conditions, the need for procurement, i.e. import of electricity increased, so the electricity deficit was 229 gigawatt-hours (gVh), instead of planned 114 gVh. Procurement of the missing quantities of electricity is dominantly carried out by the state Electric Power Company (EPCG), and a part of the electricity is purchased by direct consumers. This, however, is not the total amount of electricity that is imported into Montenegro.
According to data from energy balance sheets, which the government adopts for each year, last year the import of electricity was 1.486 gVh. In 2016, 1.220 gVh was purchased, while 750 gVh are planned for this year, which is twice as less than the last year.
