Serbia: Power market liberalization and electricity price increase; big and medium level consumers, wholesale households change of supplier 2015

Published on 11. September 2013., News Serbia Energy

Current electricity price is below sustainable and development level and, therefore, it is necessary to increase it or the investment of Electric Power of Serbia and the construction of new power plants will be affected, which are necessary for energy security of the country. From next year, the liberalization of electricity markets and the market price will be valid for customers on the medium voltage, and from 2015 for small consumers and citizens too. Big consumers power market is already liberalized and fierce fight between energy traders as new suppliers is yet expected.

 

The price of electricity in Serbia should reach the market price for two to three years, said a representative of the Energy Agency Goran Tanic.

 

According to him, if the correction is done now, the market price of electricity would increase by 20 to 30 percent of the current price of electricity.

 

He could not specify exactly how much price increase will be, but said that achieving economic level of electricity price is anticipated by Serbian Energy Development Strategy until 2025.

 

Tanić pointed out that the current electricity price is below sustainable and development level and, therefore, it is necessary to increase it or the investment of Electric Power of Serbia and the construction of new power plants will be affected, which are necessary for energy security of the country.

 

Tanić was at a conference about renewable energy, and he noted that prior to reaching the economic level of the price of electricity in Serbia it should be moved from the social component of the energy sector and that the government therefore adopted the Regulation on energy-protected consumer, which will be changed by the end of this year.

When it comes to the price of electricity, it is firstly necessary to protect the socially vulnerable layers of the population, and to ensure the price which generates a profit to the power utility, which will enable the filling “hole in the budget,” said Tanić.

Therefore, the State’s interest is to increase electricity prices, he said, and added that the prices of electricity for large industrial customers since the beginning of the year are no longer regulated, but the market prices

From next year, the liberalization of electricity markets and the market price will be valid for customers on the medium voltage, and from 2015 for small consumers and citizens too, if they wish, reminded Tanić.

He pointed out that the price of gas in Serbia, after September’s recent price increases reflect market prices and in the region and in Europe, but there is still room for rationalization of costs of Srbijagas, which affects the lower prices of gas, for which the Agency will continue to work.

The price of electricity in Serbia, which in August rose by about 11 per cent for households and 12.8 percent for the economy, remains among the lowest in the region and Europe.

After the price increase average electricity price without VAT for households is 6.14 dinars (5.35 euro cents) per kilowatt hour, and for industry 5.85 dinars (5.09 euro cents) per kilowatt-hour.

Gas has increased in price from 1 September by 4.4 percent and costs 46.3 dinars per cubic meter.

Source; Serbia Energy /AERS