Serbia: Electricity price increase in 3rd quarter of 2013, fast forward power market liberalization in retail and wholesale market, big consumers expect new prices

12. June 2013. / News Serbia Energy

Although the last price increase had been announced in the beginning of the year, it was postponed from month to month and KWHs still have the same price. Considering the current situation, this will last some time for sure, maybe until autumn because several steps that enable changing of electricity price need to be done.

As per statement from Energy Agency from Serbia, the request for electricity price increase has not been sent yet and request for public supplier license issuance hasn’t arrived in AERS and this is a condition for public supplier license issuance to be sent.

Electricity price increase should not be expected until July because certain time is required for procession and analysis of two requests (which have not been sent yet). Although we don’t know when this can be done, we can predict that 15 days at least is required for analysis and making decision and this is late because consumers need to be informed about price increase at least 15 days before KWH price grows so we can hardly expect that decision for change of price can be made until 15 June and that the whole procedure goes like it had been planned. Therefore time period until beginning of June is little for electricity price increase. Price increase from 1 August is also little possible because price increase need to be adjusted to economic policy and the projected inflation which is out of wanted frames.

We don’t know when electricity price can increase and know how much KWH’s price can be increased. Percentage of 10 to 12 percent was announced in the beginning of the year when electricity price had been announced to increase and Minister Zorana Mihajlovic didn’t want to precise how big KWH can be indicating that price is being determined by AERS on EPS’s proposal i.e. company for public supply within this company. However, she said that electricity price is determined in relation to justified expenses so it is expected to grow in the future.

This is not the end- because the social cards are important condition for electricity price increase so it was done in April. Tariff system was also discussed to be changed and it was not done so Minister Mihajlovic announced that new tariff system can be expected until the end of this or in the beginning of next year when budget fond for energy efficiency can start to function. According to her words, tariff system need to be fairer i.e. to stimulate consumers that don’t use electricity as heating energy and to discourage those who do that so the fund for financing of energy efficiency projects’ improvement is required.

Considering electricity price increase is one big mystery, consumers will continue to pay for electricity at current prices while prices are filled in with précised numbers. Many do this in time and they decrease a bill by 5% and there are many of them who have debts for used and unpaid electricity. Those who had signed a contract for paying in rates do that now because electricity can be turned off. Scissors for defaulters were announced in time.

Higher price for higher consumption

There were some talks that new tariff system can bring the change of KWHs in transfer from blue to red zone as well as ratio between daily and night electricity. Cheaper electricity after midnight should be three times cheaper than electricity during day instead of current four times while red zone will be entered with collected 1.200 instead of 1.600 what is the current limit.

Source; Serbia Energy/Agencies/ Dnevnik

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