January 23 (SeeNews) - Serbian state-owned power grid operator EPS Distribucija, a subsidiary of utility Elektroprivreda Srbije (EPS), said it reduced losses on the electricity transmission and distribution network to 12.96% of total output last year from 14.02% in 2015.
The reduction in power transmission losses allowed EPS Distribucija to save 820 million dinars ($7.1 million/6.6 million euro) more than planned and to meet the 13.5% electricity loss target set by the International Monetary Fund (IMF) for 2016, the company said in a statement on Friday.
The loss reduction was chiefly due to continued investment in the modernisation of distribution networks and power stations, the relocation of measuring points, as well as enhanced controls to detect and fight electricity theft, EPS Distribucija said.
The company aims to cut the share of electricity losses to the levels existing in the most economically-developed countries, the Serbian firm added.
Under its 36-month, 1.2 billion euro stand-by arrangement with the IMF approved by the Fund in February 2015, the Serbian government has adopted a financial restructuring plan for EPS, including enhanced bill collections, reduced technical and commercial losses, regulated tariff increases and a reduction of operational cost including through increased efficiency, optimisation of the supply mix, and staff reduction.
In a memorandum of economic and financial policies agreed by the IMF and the Serbian government as part of the sixth review under the stand-by arrangement last month, the company pledged to close two inefficient power plants by end-June 2017 and prepare an updated plan for additional rightsizing for 2017-2019.
Moreover, the Serbian government agreed to change the legal status of EPS to a joint stock company by July 2017 and to adopt amendments to the criminal code which define the offence of electricity theft.
According to the latest data available from the World Bank, the average electric power transmission and distribution losses totalled 8.163% of global output in 2013.
(1 euro = 123.997 dinars)