Financial Statement
 Introduction and comments
 Income Statement
 Balance Sheet
 Cash Flow
Introduction
For doing the activity of electricity transmission,
control of transmission
system, electricity market supply and organization AD MEPSO charges
transmission fee approved by the Energy Regulatory Commission (ERC). It
achieves regulated maximum revenue necessary to cover the costs of doing
business and gain of capital in compliance with the Rules on Method and
Conditions of Electricity Price Regulation
AD MEPSO is not a profitable oriented company but it is a public service with
regulated revenues insuring regular and duly electricity transmission through
reliable and stable electric power system.
The transfer fee for the period from 1st January 2005 to 31st October 2008
was 0.1039 Denars/KWh. By the Decision of ERC no. 02-1799/1 the price for
the service of transmission and control of transmission system and
organization of electricity market from 1st November is 0.2186 Denars/KWh.
Acting according to the EU recommendations adopted for electricity market
liberalization AD MEPSO starting with 1st January 2008 supplied the
distribution consumers with the necessary electricity quantities at price 1.818
Denars/KWh approved by ERC while the big consumers connected to 110 kV
supplied the necessary quantities of electricity alone in the open market.
On 27th August 2008 amendments and supplements to the Law on Energy
(Official Gazette no 106/08) where adopted by which significant changes in
the activities of energy companies occurred. Starting with 5th September 2008
where the amendments to the Law started to be applied, AD MEPSO stopped
to do the business of electricity supplier. Starting with September 2008 the
business of electricity supplier and also the supply and delivery of electricity
were assigned to AD ELEM.
2008 Income balance of AD MEPSO
The scheduled production and necessary electricity presented in the 2008
supply and demand balance are bases for AD MEPSO operation. At the
beginning of 2008 due to significant deviation occurred between the
scheduled and realized quantity of electricity in the supply and demand
balance such as decreased hydro power generation and increased
consumption in distribution, there was a need for putting TPP Negotino into
operation in the first three months of 2008 and for additional electricity import
in the period March-December 2008.
For these reasons additional expensive for electricity supply are shown in the
Income balance of AD MEPSO because of which the Government of the
Republic of Macedonia allocated subsidies.
In the period from 1st January to 31st December 2008 AD MEPSO gained in
its operation total revenues in the amount of 10.109.699 thousand Denars or
Euro 164.4 million. In the course of 2008 significant revenues in the amount of
122.889 thousand Denars or Euro 2 millions were gained from allocation of
cross border capacity by procedure of auction conducted as a new method at
the end of 2007.
In this period the total expense were 10.389.068 thousand Denars or Euro
168.9 million. In the current operation AD MEPSO management tried to use
the available resources in maximum and rationally and to cut costs in some
segments where the process allows such as other costs being cut compared
with the earlier period.
At the same time all measures were undertaken to pay the outstanding
receivables which resulted with success.
In the financial 2008, AD MEPSO presented negative financial results-loses of
279.369 thousand Denars or Euro 4.5 million.
The presented loss is the result of the disparity between the purchasing and
selling electricity price including the low electricity transmission price. A
significant impact on the increased costs of AD MEPSO over the last three
years had the continues increase in the price of the imported electricity
including the increased demands of electricity import due to putting the big
metallurgical capacities into operation.
These can be seen from the following data: average price of electricity
imported of 8.222 Euro cents/KWh (5.06 Denars/KWh) in 2008 in comparison
with the average price of 6.123 Euro cents/KWh (3.77 Denars/KWh) in 2007
was increase by 34%, and in comparison with the average price of 4,52 Euro
cents/KWh in 2006 was 82% increased.
AD MEPSO 2008 balance sheet
The long-term resources in income balance registered an increase as the
result of implemented investments in the course of 2008.
At the end of 2008 the current assets had a significant decline from 2.830.996
thousand Denars in comparison with 2007 as the result of the payment made
of the cumulated receivables by the distribution company. An impact also has
the fact that from September 2008 AD MEPSO has no longer operated the
supply of electricity which means that it does not bill the electricity delivered.
By the payment made the obligations to the suppliers have been settled
because of which the current debts register decline of 2.898.733 thousand
Denars.
Loan debt and investments
To finance the big investments AD MEPSO uses constantly long-term loans
from more international financial institutions such as:
- EBRD loan 174 – 400 kV OHTL Bitola Skopje 4 Project;
- EIB loan 22332 – Substation Construction Project;
-
-
IBRD loan – Energy Communities of South East Europe APL 3
Macedonia ( ECSEE APL 3 Macedonia) financing the extension of
substations and construction of interconnections and other high
voltage transmission line ( 400 kV Bitola – Florina OHTL);
EBRD loan 27768 – 400 kV interconnection between Macedonia –
Bulgaria;
During 2008 AD MEPSO repaid all matured loan installments on regular
basis.