Companies from Norway are not interested in buying Elektroprivreda Serbia. First of all, it is important to underline that Norway’s current engagement in the reform and restructuring of Serbia’s energy sector is the result of the demands of the Serbian authorities and is rooted in our strategic partnership. We are pleased to share our experience in professional management and improved performance in the energy sector. What we can do is tell you what has worked for Norway. But at the end of the day, it is not Norway, but the Government of Serbia that should make decisions and determine the course of reforms – Jern Eugen Jelsta, Norwegian Ambassador to Serbia, said in an interview with Danas, answering the question whether companies from that country, whether in state or private ownership, interested in the privatization of EPS.
What is Norway’s position on what should be the ownership relations in power companies like EPS?
Norway strongly supports state ownership in the sector given its social importance and key role for the national economy. EPS will continue to be a Serbian company, no doubt. The current state of EPS is not attractive to Western foreign investors given the dominant role of coal-based power generation and the lack of a corporate culture that reflects international corporate governance principles. Therefore, significant changes are needed in order for the company to be sustainable and financially stable.
What is the role of the Norwegian representatives in the Supervisory Board of Elektroprivreda Serbia and what will they strive for in their work?
The task is the professionalization and effectiveness of EPS in order to increase transparency, productivity and integrity. The goal is to enable EPS to respond to the challenges of increased energy demand of households and Serbian companies, as well as to respond to the challenges of energy security. And let’s not forget that EPS eventually becomes a much “greener” company with solutions for production from renewable sources. To achieve this, the Supervisory Board must have a high level of autonomy in operational, strategic and financial matters and not be subject to arbitrary political influence. Because the Supervisory Board should be the main initiator of reforms and transformation.
In this context, I would like to add that renewable solutions will influence markets, markets will encourage investments in green technologies and products, and green business solutions will become far more profitable than alternatives. Therefore, the green change is not only about principles and values, a sustainable environment or public health, but it is about the future of national economic interests, and in this case the economic interests of Serbia.
Do the Norwegian representatives in the Supervisory Board of EPS have knowledge and experience of working in the power or energy sector?
Norwegian board members have knowledge and experience in energy management with long careers in European energy companies and entities. I have noticed that one of the questions raised by the Serbian press is whether these board members have credibility given the fact that Norway does not have coal-based energy production. I believe this question has been asked incorrectly. The role of board members is to deal with the company’s long-term strategy and effective management in order to fully realize the company’s potential. And this potential is huge. This is about strategic leadership, not technical engineering. There are already plenty of capable engineers in EPS. Moreover, I am very encouraged by the quality of the board members in EPS, both from Serbia and Norway, all of whom have demonstrated outstanding achievements throughout their careers.
Will the Norwegian company Ristad Energy, as a consultant to the Government of Serbia, recommend the privatization of EPS?
As far as I know, there is no discussion about ownership of the company. The Ristad Energy team is focused on improving the company’s performance, not on its sale.
Will Ristad Energy recommend the division of EPS into three parts, that is, the formation of a company that produces electricity from coal, a company that will include hydropower plants and a company that will include renewable energy sources?
The internal organizational structure of EPS is that the Supervisory Board decides on the basis of a number of factors. Wind and solar power are different from the rest from a financial perspective and can help a company gain access to capital markets and investors. Without a solid and strong financial structure, no company will have a future. However, it is up to the Supervisory Board to decide which organizational model will best serve the company over time.
Will Ristad Energy recommend to the Government of Serbia the dismissal of EPS employees? In other words, is there a surplus of employees that will be reduced?
There is no such thing as a mass layoff plan. It is not asked as a question. The focus is on improving the company’s performance. You have already seen and will see changes in the management of the company, which is natural considering the new mandate given to the Supervisory Board. I don’t see any discussions going beyond that. Management must be professional and efficient, as well as meritocratically recruited in order to respond in the best possible way to the current and future challenges of the company.
Will the new general director of EPS be from among the company’s employees, or will a manager be brought in from outside to manage it?
The Supervisory Board decides on that, I think its members hope to see good candidates from both outside and inside the company.
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