Price of electricity not to increase yet

Since last week, when the delegation of the International Monetary Fund (IMF) arrived to Belgrade, the media have been speculating that one of the recommendations will be to increase the price of electricity by 5%. The World Bank's analysis has confirmed that Serbia has the cheapest electricity in Europe. As RTS says, there has been no discussion about increasing the price per kilowatt in the negotiations between the IMF and the Government yet, and EPS has not filed a request for a price increase either.

The arrangement with the IMF is of advisory character, the talks will take two weeks and there is still the possibility of recommending to EPS to increase the price of electricity within the continuation of reforms.

The recommendation does not have to be binding, as the price of electricity needs to be approved by the Energy Agency, but EPS first needs to file a request, previously approved by the company's Supervisory Board.

– We are analyzing all this based on the methodology we've defined, based on the justification of costs. That's why the analysis period is one month. But we can't say anything in advance – says Dejan Popovic, the president of the Energy Agency.

The last price increase took place in October 2017, when the price per kW/h was raised by 2%, which meant an average increase of electricity bills by RSD 68.

Međunarodni monetarni fond-MMF Beograd

Svetska Banka-WB Beograd

Agencija za energetiku Republike Srbije

Elektroprivreda Srbije ad Beograd

Dejan Popović

electricity price increase

price of electricity

IMF mission in Serbia