Lev Ratnovski, the International Monetary Fund’s permanent representative in Serbia, stated that the IMF recommends adjusting electricity prices once a year based on inflation trends and energy sector costs. According to Ratnovski, this approach would prevent sudden large price hikes, provide predictability for consumers, and allow electricity suppliers to maintain high-quality, reliable service critical for households and the economy.
Ratnovski explained that, as part of the IMF’s first review of its arrangement with Serbia—which was recently completed—the IMF team recommended a seven percent increase in household electricity prices. He noted that previous increases in 2022 and 2023 helped stabilize the financial situation in the energy sector, which had been operating at artificially low prices for years. These low prices contributed to losses in energy companies and a serious sector crisis in 2022.
He emphasized that raising prices alone is insufficient to create a stable and affordable energy system. Serbian energy companies—EPS, EDS, and EMS—also need to become more efficient, modern, and resilient to ensure households and businesses can rely on a stable electricity supply at the lowest possible long-term cost.
From October, households in Serbia will see an average electricity bill increase of about 300 dinars due to the agreed seven percent price hike. The IMF cited network losses experienced by Elektrodistribucija Srbije (EDS) as a key reason for the increase. Reports indicate that another increase may follow next year for the same reason.
Savo Jakovljević, Director General of the Department for Economic Research and Statistics at the National Bank of Serbia, stated that inflation is projected at around four percent in 2026, moving closer to the target’s central value by the end of the year, and around three percent or slightly above in 2027. He confirmed that the seven percent electricity price increase has been factored into these projections, contributing about 0.4 percent to inflation. Despite the increase, the price of electricity in Serbia—0.11 euros per kilowatt-hour—remains among the lowest in Europe.
