The collapse of EPS under Milorad Grčić

Category: Money and deals

Period: from 15 Mar 2016

Outcome: Under investigation (as of 8 Jul 2026)

When wet coal from Kolubara knocked six of TENT's eight units offline in December 2021, more than 136,000 people were left without power, and Serbia began importing around 1,250 megawatts overnight. At the time, Electric Power Industry of Serbia had been run for almost six years by an acting director, SNS official Milorad Grčić, and by the end of 2022 the company had lost around €815 million. A criminal complaint against him over the collapse was dismissed. In July 2026 the investigation into rigged procurements, over which he was arrested in 2025, was still under way, with no indictment.

TENT units go offline

On the night of 11 to 12 December 2021, after the first snow, poor-quality wet coal from Kolubara reached the Nikola Tesla thermal power plant in Obrenovac, and six of its eight units went down. More than 136,000 people and 2,200 substations were left without power, and overnight Serbia began importing around 1,250 megawatts, up from about a hundred before.

Grčić at the head of EPS

Electric Power Industry of Serbia was then headed by SNS official Milorad Grčić, whom the Government appointed acting director in 2016 on the SNS's proposal. As a result, the head of the largest state-owned company spent almost six years as an acting director, even though, according to Transparency Serbia, his term expired in 2017.

Dismissals and resignation

President Vučić publicly called for Grčić to be held accountable. Grčić dismissed four directors at TENT and resigned on 12 January 2022, attacking minister Zorana Mihajlović in his letter. He soon became an assistant to the president of Obrenovac municipality.

Losses and electricity imports

EPS lost about €815 million from October 2021 to the end of 2022, and about €1.1 billion was spent on 15 months of electricity imports. The Fiscal Council concluded that all of this “could and should have been avoided through better management”.

Complaints dismissed

The Prosecutor's Office for Organised Crime dismissed the ministry's criminal complaint against Grčić over the collapse in September 2022. Complaints against other executives “bounced” between prosecutors' offices.

Arrest over procurement

Grčić was arrested on 12 February 2025, while mayor of Obrenovac, on suspicion that he and his associates rigged public procurement at EPS in 2018–2019. He remained silent in his defence. His detention was lifted in April 2025, and according to the Prosecutor's Office for Organised Crime, the investigation was still ongoing in July 2026, with no indictment.

Participants

Milorad Grčić: According to the prosecution, he secured gains for two companies through five procurements of unnecessary equipment and concealed that he had bought cars from one of them (responsible)
Electric Power Industry of Serbia (EPS): According to its own statement, poor-quality coal that should never have been used in TENT's units was loaded into wagons at Kolubara (responsible)
Government of the Republic of Serbia: According to Transparency Serbia, she kept Grčić at the head of EPS as acting director for almost six years, even though his term ended in 2017. (responsible)
Serbian Progressive Party: It proposed Grčić as acting director of EPS; at the time of his arrest he was one of its officials and mayor of the municipality of Obrenovac (commented on the case)
Zorana Mihajlović: She blamed the crisis on poor management at EPS; her ministry filed a complaint against Grčić, which the prosecution dismissed (oversight and the public)
Aleksandar Vučić: He said the system had gone down because they had not paid attention to the coal, and called on Grčić to bear responsibility (commented on the case)
Miroslav Čučković: He appointed him as his assistant after Grčić resigned as head of EPS (commented on the case)
Public Prosecutor's Office for Organised Crime: It dismissed the ministry's complaint over the collapse, on the grounds that three people from EPS had already been reported for the same acts (responsible)
Higher Public Prosecutor's Office in Belgrade, Special Department for Combating Corruption: It ordered the arrest of Grčić and 14 others on suspicion of abuse of office in EPS procurements (investigation and courts)
Nenad Stefanović: He announced the arrests and the suspicion that they had abused their office in procurement and caused EPS more than a million euros in damage (investigation and courts)
Higher Court in Belgrade: He ordered him detained over possible influence on witnesses, then lifted the detention once the witnesses had been questioned (investigation and courts)
Zagorka Dolovac: In a binding instruction, she ordered that the case against Grčić be handed over to the Prosecutor's Office for Organised Crime (investigation and courts)
Fiscal Council of the Republic of Serbia: It estimated the losses of EPS and Srbijagas at around a billion euros and concluded that they could have been avoided with better management (oversight and the public)
Transparency Serbia: It pointed out that his term as acting director had expired in 2017, yet he stayed at the head of EPS for almost six years (oversight and the public)
Aleksandar Papić: According to the prosecution, he is the real owner of the company that won rigged EPS tenders in collusion with Grčić (responsible)