Serbia: IMF deal leads to 10% electricity price increase in 2016 and 2017

16. September 2015. / News Serbia Energy

While the western Balkan states have the trend of electricity price decrease Serbia has several announced electricity price increases. In Serbia one kwh is 0.06 eur while the kwh in Croatia is 0.12 eur. Since august Serbian electricity is increased for 12% and next year there are announcement for the new increase cycle.

The prices in European markets are decreasing that’s why Macedonia and Croatia decreased their average prices for households. Experts explain that Serbia is lagging for its neighbours because the electricity price is already the lowest in Europe so in the following years the price will have to be adjusted to regional trends.

Average price in Macedonia for households in first part of 2015 0.08 eur which is a decrease comparing with same period last year. While Macedonia had minor decrease of price, Croatian households will pay in average 15-20 eur less than in 2014. This decrease includes households and around 1.9 million households which are the consumers of power utility HEP.

These are the first effects of the electricity price drops in Europe because of the expected slowdown of industrial growth. Therefore the price of 55EUR/MW fell to 40EUR/MW.

Considering the current trend and projections of price drops in Europe local experts claim that Serbian electricity price increase cycle should be delayed as much as possible and in the same time work parallel on the energy efficiency and increase of efficiency in Serbian power generation facilities.

Another 10% price increase is expected in 2016 which is necessary and sufficient for the construction of one new power generation facility which is needed for Serbia energy balance.

Finally in the MoU signed with IMF, Serbia is obliged to increase the electricity price in several phases which will continue in 2016 and 2017. , transmits Serbia-energy.eu

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