Serbia: Power utility EPS and electricity prices increase plan for 2015, price increase with tariff abolition?, News Serbia Energy
The announced changes in the electricity calculation would most affected depositors. If this happens, there will not be green, blue and red zone but unique average electricity price.
Most frugal electricity consumers, whose average monthly bill does not exceed 25 EUR, could be the victim, if the Serbian Power Industry abolishes tariff system. If this happens, there will not be green, blue and red zone but unique average electricity price. So those who now pay electricity 0,045 EUR per kilowatt-hour in the green zone, which is the highest, have to pay almost double! The pool and home sauna owners or large consumers have best underwent, by which kilowatt would be almost half cheaper.
Dragan Vlaisavljevic, EPS executive director, has recently spoken on any change in tariff, which is responsible for supplying electricity in large. Vlaisavljevic is one of seven executives who, according to the latest EPS decision, manage this public company.
– The existing tariff system according to which the calculated electricity to households in Serbia is outdated and complicated, and electricity bills continue to confuse citizens – said Vlaisavljevic. – Therefore, EPS will ask the Serbia Energy Agency to amend the system. The tariff system may be much simpler, but it does not depend on EPS. It is much easier to sell electricity to eligible customers in the free market.
According to “Novosti”, a member of the EPS Board of directors talked about the abolition of block tariff, noting that tariffs are incomprehensible to consumers, and that precisely they limited citizens to rationally spend energy.
If the tariffs are abolished, the best would pass those who heat with electricity and the biggest consumers. While the kilowatt-hour for the households that consume kilowatts in the green zone costs 0,082 EUR instead of 0.045 EUR, consumers in the red zone would pay cheaper kilowatt hour than now by 0,058 EUR.
The procedure requires that the EPS sends proposals for changing the tariff system to the Energy Agency.
The current tariff system is designed to encourage and stimulate rational electricity consumption, as well as to prevent the costs spillover in the system causing irrational consumers on the other – say in this agency. – In that sense, for its development, the Agency constantly analyzes the effects of the tariff system and it is ready to accept all proposals and suggestions that lead to strengthening the mentioned.
This is the second time in several years that EPS tries to influence the tariff system. Two years ago, a proposal for a new calculation by which the electricity was charged, was supported by the then Minister of Energy Zorana Mihajlovic. The former proposal was to reduce the ratio of cheap and expensive electricity. So, instead of four times the electricity consumed at night would be only three times cheaper than daily kilowatts. Also, citizens would quickly “walk” from blue to red tariff, but with consumed 1,200 instead of 1,600 kilowatt-hours.
EPS DID NOT ASK FOR TARIFF CHANGE
Department for Public Relations of PE “Electric Power Industry of Serbia” has denied the text in yesterday’s edition of “Vecernje Novosti” that EPS requested a tariff system change and the abolition of both states ‘cheap’ rates.
In the letter, among other things, as far as the topic, states that the tariff system change is under the jurisdiction of the Serbia Energy Agency, and “Electric Power Industry of Serbia” was not initiated or filed a request for a tariff system change:
– For true and correct information to the public, we point out that the term tariff refers to higher and lower tariffs, while the term zone refers to the amount of kilowatt-hours per zone: “green”, “blue” and “red”.
Also, from EPS indicate that changing the tariff system under the law disables an increase in electricity prices, but the Energy Agency approves the price increase by the adoption of specific decision on fixing the electricity price:
– It is also tendentious taking out lump sums on the kilowatt-hours price if there would be a change in the tariff system, and published amounts of the new kilowatt-hours prices are not true.
EPS DIRECTOR ANNOUNCED THE CANCELLATION
Announcement of increase in electricity prices for the most economical consumers is not idea or a tale of the “Novosti” newsroom, but the interpretation of the statement of one of the seven EPS executive directors – Dragan Vlaisavljevic.
As the corporatization basis of our largest public company, Vlaisavljevic was elected on January 29th in a new governing body and he is one of the seven most important people in EPS.
– The existing tariff system by which the electricity is calculated is outdated and complicated, and the accounts continue to confuse citizens – Vlaisavljevic said on Friday at a conference on “Sustainable energy development in South-Eastern Europe”. – Therefore, EPS will ask the Energy Agency to amend the system. The tariff system may be easier but not to depend on EPS. We easier sell electricity to eligible customers in the free market.
Besides these statements, Vlaisavljević talked several times at the conference about the need to lift the block tariffs – or “green”, “blue” and “red” zone.
If one of the seven most important EPS people says it at the expert meeting, it was noteworthy news to our readers. Especially when it is known that the abolition of tariffs affected the largest number of consumers. Perhaps EPS could deny its director or to respond to specific questions of “Novosti” to explain Vlaisavljevic attitude the day before, which it did not do.