Electricity price increase is inevitable says EPS deputy manager

, News Serbia Energy

It is inevitable that electricity prices will increase next year as it was unofficially confirmed by the Serbian government to “Novosti”. Estimates are that the increase of rates of maximum 15 percent could be granted to “Electric Power Industry of Serbia”. In the first quarter of the year, we can certainly expect more expensive gas, probably for about ten percent.

In the “Electric Power Industry of Serbia”, for the moment, they do not want to confirm, but they also do not deny the allegations of deputy director of the company Zivotije Jovanovic that electricity prices should increase for 25 percent. According to this calculation, the price of kilowatt would “go” from 5.1 to 6.4 euro cents. Practically, we would be paying it 7.3 dinars, and with the value added tax – 8.8 dinars.

– We have not yet asked for electricity price increase from the Energy Agency of the Republic of Serbia and we do not know how big it would be – they said at EPS. – At the end of the fiscal year, when we review the business report and review the implementation of all plans and investment implementation, the exchange rates and inflation, we will reconsider whether there are conditions that require the correction in electricity prices.

EPS management has previously announced that in the next two years, or until the end of 2014, it would be realistic for electricity prices to rise by about 40 percent.

Starting from New Year according to the new law on energy, only Energy Agency gives approval to changes in the prices of electricity and gas at the request of public companies. Thus, at least formally, the decision of the Government of Serbia will no longer be needed.

However, on Tuesday, Energy Minister Zorana Mihailovic said

– Next year at some time there will certainly be an increase in electricity prices, but after we complete the tariff system and the social maps. Any guessing whether there will be an increase in the price of electricity, and to what percentage, is frivolous – highlights Mihajlovic..

According to the new Law on Energy, only Energy Agency gives approval to changes in prices of electricity and gas, at the request of public companies and the final decision of the Government of Serbia will no longer be needed.

– When deciding on prices of electricity we shall have in mind that the approved price includes operating and depreciation costs of enterprises, capital investment, and providing a reliable supply of electricity to consumers – they say in the Energy Agency.

Source Serbia Energy Magazine