Electricity in Serbia for households udders is around 3 times cheaper than the EU average, and 20% lower than in poorest EU members Romania and Bulgaria. The change of electricity price, with mechanism for protection of poorest population, is needed according to European Commission who demonstrated this opinion in this year report on Serbia, this opinion is supported also by energy companies seeking market liberalization.
According to the Eurostat, the electricity price for households is 17,8 eurocents per kwh and in Serbia the price with VAT is 6,5 eurocents. The highest price is in Denmark 29,1 and lowest in Bulgaria 8,3.
When it comes to surrounding countries, in Croatia the price is among lowest in EU, 11,4 eurocents and in Bosnia 7,5 eurocents. For Macedonia according to data the price is around 6 eurocents.
The price difference between Serbia and European average for industry users is smaller. The prices in Serbia according to the official statistical data is 5,7 eurocents per kwh and in EU 10,1. Serbia also have discounts for regular payers but also for poorest citizens.
The industry in Croatia pays 9,1 eurocents, in Bosnia 6,1eurocents per kwh, according to the data from Eurostat latest report for region.
The price differences seem normal considering differences in salaries between Serbia and most of the EU members. European commission noted that this situation is not sustainable, despite all circumstances. From financial point of view such subventions are not feasible on long term and they endanger the overall energy sector development but also disturbs the regional market development and its liberalization, necessary investment into grid networks and infrastructure for green energy sources. In long run, if nothing changes, this will endanger the capacity of the grid networks and supply security.
According to the Energy Community Treaty for South east Europe, Serbia is obliged to set the energy market.
According to the new Energy law, as of 2013 the electricity price will be determined by Agency for Energy. When it comes to lower prices for industry users which are not procuring energy on the market, it is projected that 10% of the total market procurement will come from market as obligation, from 2014 additional 20%.
Source serbia-energy.com
