Serbia: Energy regulator says that there is a space for price increase, price increase to cover the floods losses and for investments

, News Serbia Energy

There is a space for the electricity price increase because with the current price there is no way to provide funds for investment and construction, said the Energy Agency AERS. AERS confirmed that the Electric Power Industry of Serbia has not filed a request for an increase in electricity prices.

– If they would request the price increase, we will have to analyze why they seek it. From what we have analyzedso far, there is space for increase in prices, but we do not know whether the EPS look for it and how it will be justified – said from AERS.

AERS said the problem was that they had to provide funds for further construction and investment, and there was no way to build it with the current price.

– This price covers the cost of depreciation, regular repairs and maintenance, but there is no space for some larger enterprises in the electric power industry or for new construction. Not only that EPS cannot provide construction, but no one else, because whoever cones, he will ask first- what is the price and can he recover the investment from it- concluded AERS.

AERS noted that the electricityprice for end consumers only was partially regulated.

– It is not regulated in the economy because the economy purchases price in the market and what EPS offers it has not to be so, in order to be competitive among other suppliers – AERS said.

According to AERS, what is regulated is the electricity price for households and small customers who have similar household consumption, which are around two-thirds of the energy to final customers.

Electric Power Industry of Serbia denied today that it had filed a request for an increase in electricity prices.
Asked by medias whether the information about a possible increase in the electricity price by 15 percent from September were true,in EPS responded that the company had not filed request for an increase in electricity prices.
EPS also reminded that, according to the Energy Law, the Energy Agency approves the change in the electricity price.

EPS system suffered extensive damage during the floods in May and the measures that can be taken still are considered in order that the consequences of flooding would have much less impact at the stability of the energy supply and the company business, states in the EPS response.