In the Balkan nation, Montenegro Uniprom has closed down the country’s exclusive aluminium smelter, KAP, with the proceedings being accomplished by 30th December 2021, following its failure to agree on a new electricity price with power company EPCG.
However, Uniprom notified earlier that it would close KAP due to the skyrocketing price of electricity making its production unviable.
Veselin Pejovic, the CEO and Founder of Uniprom Group held liable EPCG for being responsible for this extreme decision, while on the other hand, EPCG urged Pejovic to sit for another round of discussions to find a solution.
KAP was paying €45 per MWh plus VAT by the end of 2021, whereas on international markets the electricity price is now around €250 per MWh.
The energy supply contract between KAP and EPCG lapsed at the end of the year and EPCG sought a price of €183 per MWh as of January 2022, so that the energy provider will not suffer financial losses. However, Veselin Pejovic said, “We cannot afford to pay this price.”
Montenegro, a country with a population of around 620,000 people will face a huge impact following the closure of KAP, as 500 staff will be laid-off. KAP’s workers are striving for a commitment from the government towards receipt of unpaid wages for two months.
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