Serbia electricity and gas price reform, is everybody ready for power market liberalization?

11. January 2013. / News Serbia Energy

Belgrade- Minister of Energy Zorana Mihajlovic declared that not two, but one electricity price increase in next year is being considered. “Ministry has never announced that there will be two electricity price increases next year”, declared Minister Zorana Mihajlovic and repeated that there will be one price increase during the first quarter of 2013.

Big industrial electricity consumers asked for gradual electricity price increase and 6 months transition period for market opening planned for 1 January 2013, said Serbian Chamber of Commerce.

“Energy Agency of Republic of Serbia (AERS), as regulatory body in charge, will decide how big the price increase will be and when it will happen”, noticed Minister.

She repeated that social cards for poor consumers who will pay lower electricity price, will be over until the end of this year, and new tariff system in January next year.

Mihajlovic said that she had spoken to AERS members the day before. They discussed about organization things which have to be in order to talk about gas and electricity price increase.

Beside announced electricity price increase in first quarter of 2013, one more price increase is needed before summer for EPS to get back on its feet and to save the strategy company, estimated energy experts.

Elektroprivreda Srbije hasn’t submitted the request for price increase to AERS, and EPS will do the estimation of realistic price increase by the end of this year. Everything else would be speculations before calculations are done, EPS said to Tanjug.

“Srbijagas” submitted request for 10% gas price increase to AERS, Agency said to Tanjug and stressed that necessary analyses for justification of price increase are in progress.

Agency couldn’t say if approval of eventual price increase will be given until all analyses are finished and all working costs of Srbijagas are considered.

Big Consumers for Gradual Price Increase

Big industrial electricity consumers asked for gradual electricity price increase and 6 months transition period for market opening planned for 1 January 2013, said Serbian Chamber of Commerce.

Announced 60% price increase for consumers connected to high voltage will directly cause sudden high producing costs increase, was alleged in statement.

That was pointed on meeting which was in PKS, initiated by qualified buyers of high voltage electricity or biggest industrial consumers of electricity in Serbia, held on 21 December.

Concern that announced price increase will cause production decrease was brought up.

“Part of new high producing costs will be covered by companies, but part will be exceeded on finished products price increase and the consequence will be additional influence on market decrease, inflation increase and fall of industrial production in Serbia, declared PKS Vice President Vidosava Dzagic.

Liberalization of electricity trade since 1 January 2013 is planned by energy law.

The biggest industry consumers will have to find its supplier on electricity trade and pay prices which will be formed openly.

PKS alleged that price will be 60% higher than average electricity price at the moment according to industrial producers. It was also announced that the use of electricity transmission networks prices will be increased for 37%.

Source Serbia Energy Magazine

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