Serbia, A new price of electricity for the economy and households will be determined

, News Serbia Energy

The current price of electricity will not last long, and in the coming period, a new, even more expensive one will be set for both the economy and households, writes Demostat.

Referring to its findings in sources close to the Government of Serbia, Demostat states that the goal of the authorities is to raise the price of electricity for the economy in stages in a total amount of 70 percent.

So far, two stages have been achieved within that campaign, the first on January 1, when the price of 75 euros per megawatt hour was proclaimed, and the second from September 1, when it was raised to the cost of electricity for the economy of 95 euros per megawatt hour.

The campaign will last until the goal is met that the total percentage of price increases that will burden the economy amounts to the planned 70 percent, according to Demostat.

Demostat states that this information of theirs was confirmed in Prime Minister Brnabić’s statement to Serbian Radio and Television that during the crisis, the economy must be protected with subsidized prices for both electricity and gas in order for it to be competitive.

“From what has been said, it is completely clear that in the Government, by ‘protection of the economy’ and ‘subsidized price’, they mean that its price for companies rises gradually. So, according to the principle of price growth that Demostat wrote about”, the text states.

What the authorities see as their “help” to the economy, entrepreneurs consider it a new levy in crisis conditions that threatens the existence of their companies and their employees.

And the increase in the price of electricity for the economy – the citizens will pay

According to the opinion of the expert public, the absolutely certain epilogue of every increase in the price of electricity for the economy is that, in order to compensate the costs and achieve the desired profit, company owners will increase the prices of their products and services, adds Demostat.

In practice, as stated in the text, this means that the guild, as the end consumers, will be paid by the citizens of Serbia. Every new price increase leads to an inflationary shock, which creates big problems for both citizens and the state.

When it comes to the announced increase in the price of electricity for households, it is completely clear that this will have a negative effect, i.e. cause a decrease in the already low standard of living of citizens in the crisis conditions caused by the coronavirus epidemic and the Russian military intervention in Ukraine.

As a reminder, Demostat adds, the last time the price of electricity for households rose on September 1, in the amount of 6.5 percent.

Demostat states that with her recent appearance on RTS Brnabić, she confirmed their “exclusive information” from September 20.

“What is completely contradictory and surprising is that Prime Minister Brnabić announced an increase in the price of electricity after more than a month ago she denied the writing of our portal that the government plans to increase the price of electricity for the economy, accusing us of “pinocchio journalism”, said Demostat, reports Nova.