The Power Plants of North Macedonia (ESM) will take over the management of the Balkan Energy Group (BEG) and Skopje Sever companies as of Jan. 21, upon a decision to be adopted at a session of the Government, Economy Minister Kreshnik Bekteshi said Tuesday, MIA reports.

“We don’t subsidize private companies and therefore, a decision was made by ESM, which is a 100 percent state-owned company, to take over the management of BEG. We’ll meet the needs of users through ESM, not BEG as previously announced, given that the municipalities and the City of Skopje didn’t get involved to help in this situation. The difference between the real and the current price for users will be covered through the state-owned ESM,” Bekteshi told reporters.

He pointed out that ESM’s decision to take over the management of the companies as of Jan. 21 came following a decree adopted by the Government at the proposal of the Ministry last week.

“As of January 21, ESM is to take over the supply, production and distribution of heating energy, in line with an agreement on business and technical cooperation between ESM and BEG, the validity period of which should be set by Thursday,” said Bekteshi.

Asked how much money will be needed to overcome the crisis in the heating supply in Skopje, Bekteshi said calculations for EUR 6 million necessary to overcome the situations were made based on stock exchange prices of natural gas for January.

“We’re now expecting offers for February and March, and appropriate calculations will be done according to those projections and the current formula of the Energy Regulatory Commission (ERC) and ESM,” Bekteshi noted.

He pointed out that debts incurred by BEG and Skopje Sever to TE-TO and Makpetrol for gas supply over the past few days up until Jan. 21 will need to be resolved by the private companies themselves through mutual agreements on deferred payment or in another way.

“As of January 21, up until the day ESM is responsible for the management of BEG and Skopje Sever, it will be ESM’s obligation to carry out all procedures and meet all obligations, however at the same time demand fulfillment of the delivery of what has been agreed. We do not intend to take on the obligations they have until January 21. However, as of January 21, when ESM takes over management of supply, distribution and production of heating energy in line with the agreement, which is to be confirmed at a session of the Government on Thursday, it will take over the obligations,” Bekteshi said.

According to him, a new agreement is most likely between ESM and BEG and Skopje Sever on Thursday, adding that the public will be informed timely. Asked whether there will be accountability for the situation with the heating in Skopje, the Economy Minister said procedures are already opened in the Prosecutor’s Office over issuing licenses for BEG in 2012, while the ERC will take necessary measures as regards obligations under the licenses when necessary.

“State institutions are fully prepared to respond to the energy crisis. The 2022 budget also provides for a situation of an additional health crisis at the same time with the economic energy crisis. Near EUR 100 million are provided for such a case, as well as an additional EUR 30 million where these funds may be used. This is also included in the decision adopted by the Government,” Bekteshi said.

Source: MIA