Serbia: The imported electricity six times more expensive than domestic one

Published on 25. June 2014., News Serbia Energy

Any increase in the electricity price is too big hit to the already thinned household budgets of the citizens, but energy experts believe that this is an inevitable step. Kilowatt from abroad costs 24, while in Serbia it costs 6.24 cents.

SERBIAN energy system gives its maximum in the electricity production; plants are working on the edge of endurance after the floods in May, but there are not enough kilowatts. Due to this we import electricity and pay it six times more expensive than that one “Electric Power Industry of Serbia” submits us at the invoices. All this, as experts say, could lead to price increase.

From May 15th to early June EPS imported 161.27 million kilowatt-hours. For it was paid 6.5 MEUR. According to this calculation, kilowatt outside the EPS cost 24 euro cents. Households pay 6.24 cents for kilowatt inclusive with taxes and value added taxes.

Any increase in the electricity price is too big hit to the already thinned household budgets of the citizens, but energy experts believe that this is an inevitable step. The only solution would be the state also this time to stand behind the “Electric Power Industry of Serbia” and to help her to compensate losses due to non-economic electricity costs.

– Before and after the floods, the electricity price in Serbia is far below the economic threshold level, which is currently around 6.5 euro cents per kilowatt – says Slobodan Ruzic, doctor of electrical engineering.

– This price does not allow any development of EPS and the entire energy system of Serbia. Is it a good time for a price increase? From the citizens perspective it certainly is not, but in this situation of reduced production may happen that this winter we have a shortage. We already import electricity and if the state does not help EPS, our system will not be able to withstand.

We import electricity because the production is currently unable to meet the needs of our market. These days Serbia spends about 82 gigawatt-hours, and at this time of year it usually spends about 77 gigawatt-hours, which means that consumption is higher by about 6.5 percent. Especially there will be difficulties with electricity purchasing during this winter, when demand would be significantly higher, because according some announcements there will be a lack of at least 30 percent of electricity.

The electricity price in Serbia is at the bottom compared to European pricing. Compared to kilowatt in Denmark or Germany, the Serbian kilowatt is almost five times cheaper, but our electricity is also favorable than the one from the neighborhood. Croats pay 13.5 euro cents for kilowatt, Montenegrins 10.54 and Bosnians 7.96 eurocents. In Macedonia, electricity costs more, and kilowatt is 7.8 eurocents.

MARKET OPENING

The liberalization of the electricity market for households will start on July 1st, as has been anticipated. Citizens will be able to choose their supplier of kilowatts from the autumn or, according to some estimates, at the beginning of next year. Unlike businesses, citizens will not have to change their supplier, but will also have the opportunity to decide whether EPS is the best and most favorable to them.