Serbia, Price of electricity for residential consumers will have to be increased by 8 to 10 %

, News Serbia Energy

Serbian President Aleksandar Vucic said that the price of electricity for residential consumers will have to be increased by 8 to 10 % in the near future.

He said that larger price increase is out of question, firstly because it will be a huge blow to living standard of citizens and, secondly, it might scare off potential foreign investors in the country.

President Vucic stressed that Serbia has enough energy for the winter season, adding that all vital energy systems have been stabilized.

Last week, research center Demostat, the electricity prices for both residential and commercial consumers cannot last for long at this level and new, higher prices are expected to be set in the coming period. Citing the sources from the Government, Demostat claims that the increase of the price of electricity for commercial consumers will be up to 70 %. The price for commercial consumers has already been increased as of 1 January to 75 euros/MWh and as of 1 September to 95 euros/MWh.

The price increase for the commercial consumers will be gradual since most of the companies would transfer the electricity price increases to the final price of their products, which would, in turn, cause inflation shocks. Regarding the increased price for households, Demostat states that it will have a negative impact on already low living standard of citizens caused by the coronavirus pandemic and Russian invasion of Ukraine.