Serbia, Electricity and gas prices are unrealistic

, News Serbia Energy

Electricity and gas must rise in price because now the prices are below production costs and are unrealistic compared to market prices, energy experts told Beta.

Željko Marković, the head of the energy sector at the consulting company Dilojt Serbia, said, on the occasion of the announcement by the Minister of Mining and Energy of Serbia, Dubravka Đedović, that the prices of electricity and gas must increase, that electricity should first of all become more expensive for households.

Đedović, guest on Euronews, said that “we should not forget that citizens and the economy pay one of the lowest prices for electricity and gas in the region and Europe.” She said that production costs must be covered and that electricity and gas prices must be raised because energy companies in Europe have increased those prices three, four, five times, and sometimes even more.

Marković said that “there is room for an increase in the price of electricity for households” because it amounts to an average of 41 euros per megawatt.

“Judging by the average electricity production costs of Elektroprivreda Srbije (EPS), a megawatt should cost 95 euros for households”, said Marković.

He added that the prices for the economy have been determined until December 31 and that then a new calculation will be made and see if they should be increased.

“The current price of electricity for the economy of 95 euros per megawatt is approximately realistic.” “Electricity prices, which depend on the price of gas, have been almost at a standstill in recent months because gas storages are full, and consumption has not increased significantly so far, and that has calmed the rise in electricity prices”, said Marković.

Marković said that the current price of gas is also unrealistic compared to the prices paid by consumers abroad.

Senior advisor for energy, Nenad Jovanović, estimated that citizens can still be calm because the price of electricity for households will not change until the end of the heating season in April.

“The price of electricity, like any other commodity, is determined by the market and no one should interfere with it.” In Serbia, however, the government recommended to EPS what the price of electricity could be, and that company accepted it. That is why electricity for citizens will not become more expensive until April, and they are certainly protected until then”, said Jovanović.

He pointed out that electricity prices abroad are mainly determined by the market, i.e. supply and demand.

“Exceptions are rare, such as in Austria, where the price for monthly household consumption of up to 240 kilowatts is subsidized, and the price of kilowatts for consumption above that amount is determined by the market”, said Jovanović.

He pointed out that the economy in Serbia currently pays EUR 0.095 per kilowatt of electricity, and that according to the market price, a kilowatt should cost EUR 0.17, N1 writes.