Decision on Legality of Power Utility Tender Within One Month

EPS (BETAPHOTO/ AMIR HAMZAGIC)

The Serbian Commission for the Protection of Rights in Public Procurement Procedures will rule within one month on the legality of a tender for electricity meter reading services called on Oct. 5, 2024, at which the Electric Power Industry of Serbia picked the EUR12-million more expensive bid out of two bids received, the Demostat research and publishing center reported on Jan. 8.

The tender was called earlier than planned due to "prematurely spent funds," and the estimated value of the job, according to the power company, was RSD3.5 billion (roughly EUR30 million), Demostat recalled. The tender commission selected a consortium headed by the Montop HRS temporary employment agency, which had been the only bidder in the last few years, covering the areas of Vojvodina and half of central Serbia.

According to Demostat, experts claim that, in its previous contracts with the power utility, this consortium had only read some 70 percent of meters (against a standard of 99 percent), which caused the power utility to lose EUR50 to 60 million each month in uncollected fees alone. Montop HRS' bid was RSD5.37 billion or EUR45.88 million -- individually, this was RSD95 per meter. The other bid came from a consortium headed by Djerdap Usluge, in the amount of RSD3.92 billion, or EUR33.5 million -- RSD69.99 per meter.

The owner of Montop HRS is Marko Bosanac, described by Vojvodina media outlets as a controversial businessman and prominent member of the Serbian Progressive Party, with numerous dealings with state outfits and public enterprises, Demostat reminded. Demostat went on to say that the members of the consortium were also firms close to the Progressive party.