The Minister of Mining and Energy, Dubravka Đedović, stated that it is necessary for electricity to become more expensive “before the New Year”. During this year, and in accordance with the arrangement with the International Monetary Fund (IMF), the price of electricity rose twice – in January and May, by eight percent.
When it comes to the new price increase, the IMF recommended as part of the first review that the decision on the price increase of electricity and gas be made by the end of October, so that the price increase of eight percent for electricity and 10 percent for gas will come into effect in November.
Regarding the new price increase, Đedović emphasized that the goal is to have “the lowest or among the lowest prices for both electricity and gas in the region”, as well as that the increase in electricity prices is necessary in order to implement “much-needed investments in to the energy sector, which are estimated at 15 billion euros in the next 10 to 12 years”.
However, the IMF stated in the material published in July of this year that a further increase in electricity and gas prices in November and during 2024 “is necessary in order to eliminate all budget subsidies to state energy companies until the end of the arrangement, as well as to financed much-needed investment spending in the coming years.”
The IMF and the Ministry certainly agree on the need for the new impact on the household budgets of the most vulnerable to be mitigated, so both institutions are hoping for the application of the status of an energy-vulnerable customer, which brings the right to significant bill reductions.
In May, a new price increase followed in the same percentages for electricity and gas, and the Ministry of Mining and Energy announced at that time that “the current situation with energy sources in Europe is the most difficult in the 21st century due to geopolitical events” and that the Government of Serbia is investing additional funds in order to the Serbian energy system functioned smoothly, as well as during the winter season.
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