Serbian power utility EPS announces electricity price increase, implications for the power market and consumers

, News Serbia Energy

Electricity price in Serbia can increase since April- it is said in Elektroprivreda Srbije (EPS).

All necessary procedures for electricity price increase have not been finished yet and the company hasn’t submitted a request for price increase to Serbian Energy Agency (AERS) either.

Electricity price could increase in a month or two, Acting Managing Director of Elektroprivreda Srbije (EPS) Aleksandar Obradovic announced last week. He stressed that EPS can’t launch a process of electricity price increase until Managing Board of the Company approves establishment of a dependent corporation consisted in EPS that will be in charge of public supply at regulated prices. This conference have been postponed and never appointed again.

When Managing Board makes a decision for this corporation establishment, the license for this activity afterwards must be given and then it can launch necessary procedures for electricity price increase, Obradovic said, but he couldn’t precise how much this price can increase.

When EPS submits a request for electricity price change to AERS, who is in charge of that, besides procedures and justification of price increase request procession, EPS must inform its consumers about it at least 15 days earlier so this whole procedure can last.

According to earlier announcements from Ministry of Resources, electricity price can increase 8 to 12%.

Electricity price in Serbia increased for the first time on 1 April 2011, for 15% a month approximately and to cost around 5,5 eurocent per kilowatt-hour.

EPS emphasizes the significance of electricity price increase for the company which has financial issues and urgently needs 30 billion worth credit and price increase would magnificently facilitate the issuance of these credits on the market. Despite that this increase wasn’t calculated in the business plan of EPS, rebalance of the program will be done do the missing 50 billion dinars will be provided from the effects of price increase and other saving expenses- it was said in the company. This company will write off 8 billion dinars to consumers on the base of electricity debt interests, but they couldn’t precise when this measure will begin to be valid.

Several details related to interest write-off program will be discussed tomorrow after the meeting of Trade Director and Industrial Societies of EPS- it was said in the company. They also reminded that Serbian Government made only a general decision for interests’ write-off and that EPS should make a plan for this. Writing off interests for electricity will be valid for both citizens and industries- Minister of Energy, Zorana Mihajlovic, announced and she précised that condition for this write-off will be that owner should make a contract with EPS for debt payment in rates and to pay liabilities for used electricity at the same time.

Source Serbia Energy/EPS