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HomeEconomyHeating went into deficit due to interest

Heating went into deficit due to interest

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Heating Costs Increased Due to Interest Rates

The boiler house located on Skerlićeva Street, Photo: Goran Malidžan

The Municipal Heating Company concluded last year with a loss of approximately 7,200 euros. This was, among other factors, influenced by the late payment interest charged by the Pljevlja Coal Mine for delayed coal payments from previous periods.

The company’s director, Vlado Tošić, stated that the coal mine imposed a late payment interest totaling 29,077 euros on outstanding receivables for coal supplied to the city boiler house.

“The loss was primarily driven by the calculation of late payment interest from previous periods, along with a 60 percent reduction in service user bills in October last year,” Tošić noted in last year’s work report.

He mentioned that he was unaware of the coal mine charging any municipal companies late payment interest until now.

Local opposition councilors assert that this is the first instance of the largest Pljevlja company charging late fees to a municipal firm.

“This marks the first case of a state-owned entity dragging a local company into the red. I have never heard of anyone in Pljevlja being charged late payment interest of this magnitude. It shocked me to learn that the Coal Mine has started doing this. Instead of providing coal donations to local companies to combat environmental damage, it opts to charge late payment interest. I seriously doubt Aleksandr Potroshenko has settled his coal debts, let alone incurred interest. The Italians didn’t charge such fees during their management of the Coal Mine,” commented Saša Ječmenica, an independent councilor in the Municipal Assembly.

Dragisa Sokic from the DPS party expressed that late payment interest should not have been applied and that the municipality should have intervened to facilitate payments to Grijanje, allowing the company to settle its debts.

He also argued that no local company has ever faced late payment interest charges before.

“The boiler house may have had outstanding payments previously, but such fees were never assessed. The new management’s first action was to impose these charges on our city and its residents. This will undoubtedly influence heating costs. These weren’t outsiders from Podgorica; they were local individuals from Pljevlja. It’s clear how disconnected they are from local challenges. It would be fair for the coal price for heating to align with that of the Thermal Power Plant. Local leaders should prioritize the well-being of Pljevlja’s residents, ensuring coal prices are more affordable. The Coal Mine has a significant environmental impact in our area, and we should advocate for resolving these issues, even though it may be challenging. The current situation is unacceptable and does not reflect the values this community deserves,” stated Sokic.

Haris Alavac suggested that the coal mine should provide coal donations instead of imposing late fees.

The Coal Mine has confirmed to “Vijesti” that it collected late payment interest from Grijanje, asserting that it acted within legal parameters.

They indicated that the new management inherited the debt owed by Grijanje for unpaid coal obligations.

“Since its inception, the Coal Mine has been community-oriented and socially responsible, demonstrated through various donations. Business relationships with companies are governed by contracts that clarify each party’s rights and obligations. In this particular case, the current management inherited Grijanje’s debt due to unpaid coal purchases. To accommodate the company’s needs, we signed an installment repayment agreement last year for about 206,000 euros, which included accrued late payment interest due to missed payments. Despite our willingness, Grijanje has not honored any repayment installments thus far,” the Coal Mine stated to “Vijesti”.

They further clarified that late payment interest is a legal obligation that arises from unmet claims within the specified period.

“Any other interpretation would imply illegal and irresponsible business practices that could harm the company. The Pljevlja Coal Mine aims to avoid involvement in local political disputes and does not wish to comment on the performance of local companies, as they remain our business partners. Our focus is on socially responsible operations within the community. Last year alone, we provided over 1,500 tons of coal to vulnerable citizens, organizations, pensioners, sports clubs, humanitarian groups, and religious institutions, a commitment we intend to continue,” the Coal Mine responded.

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