Serbia, Electricity prices for both residential and commercial consumers cannot last for long at this level

, News Serbia Energy

According to research center Demostat, the electricity prices for both residential and commercial consumers cannot last for long at this level and new, higher prices are expected to be set in the coming period.

Citing the sources from the Government, Demostat claims that the increase of the price of electricity for commercial consumers will be up to 70 %. The price for commercial consumers has already been increased as of 1 January to 75 euros/MWh and as of 1 September to 95 euros/ MWh.

The price increase for the commercial consumers will be gradual since most of the companies would transfer the electricity price increases to the final price of their products, which would, in turn, cause inflation shocks.

Regarding the increased price for households, Demostat states that it will have a negative impact on already low living standard of citizens caused by the coronavirus pandemic and Russian invasion of Ukraine.

The price of electricity for residential consumers was increased by 6.5 % as of 1 September 2022.

Earlier this week, new Minister of Mining and Energy Dubravka Djedovic Negre said that the increase of electricity and natural gas prices is inevitable.