Serbia: Increase of electricity price is a game and market incentive for entrance of new competition to power utility EPS

, News Serbia Energy

Current electricity price is not realistic and government will continue to resist to external pressures for price increase because this price determines the already low life quality of citizens stated Branko Kovacevic the chairman of Supervisory Board of power utility of Serbia EPS Elektroprivreda Srbije.

Kovacevic believes that the government does not have the intention to increase the electricity price any further after recent august price adjustments.

According to Kovacevic, liberalization of electricity market is a game between foreign power companies and national state owned EPS. Other market players are trying to pressure and lobby the price increase in order to be competitive with EPS.

External factor in this game are the interested parties or stakeholders in Serbia energy sector reform and EPS restructuring. These external factors are IMF, WB, EBRD and other private investors which desire the electricity price same as in EU so their companies could compete in Serbia. On the other hand we have our own problem of unemployement, low life standards and the electricity is the key influencing factor on the quality of life of our citizens explained Kovacevic.

He believes that Gov of Serbia will continue to resist to any kind of pressure from outside for electricity price increase. Kovacevic reminded that the energy regulating agency AERS is the intuition at the end of proces which is defining the electricity price. , transmits

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