Increase in the price of electricity

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The darkest suspicions about our wallets are coming true, the Minister of Energy Zorana Mihajlović confirms them – there is no more dilemma, electricity will become more expensive. Minister Mihajlović admitted that the targets will certainly not be spared that additional cost. However, he also tries to comfort, so he says that the Decree on the energy endangered customer has been prepared, which will help those who cannot pay for electricity, gas or heat.

“I know that it is not popular at all, but I expect an increase in the price of electricity for citizens, but the Ministry of Mining and Energy has prepared a Decree on energy-endangered customers that will help those who cannot pay for electricity, gas or heat.” Mihajlovic said in an interview with the Beta agency.

She added that the price correction was announced when it was said that there would be no increase in the price of electricity during this heating season, and that season has passed and “new calculations” must be made now.

The new price of electricity must be harmonized with all parameters and sustainable for the Electric Power Industry of Serbia (EPS), for the state and for the citizens, because that company “must get out of the crisis on its feet, not on its knees.” According to earlier information from Demostat – the price of electricity will increase by 30 percent for citizens, and 70 percent for businessmen. It will be like that from the summer.

Businessman and president of ITM Sistema Toplica Spasojevic said for Nova that the time of cheap energy has definitely passed, and that due to the announcement about the increase in electricity prices for businessmen by as much as 70 percent, the consequences could be higher prices and stop production.

In a statement for Nova.rs, Spasojevic commented on Demostat’s allegations that in July and August, the price of electricity will increase by 30 percent for households, and up to 70 percent for the economy.

“Perhaps such allegations are exaggerated, but the question is how much that value would be. If we look at the current price of 75 euros per megawatt hour, it is about 120 euros, which is quite a high price. The production price is between 20-30 euros.” , and to sell it for 120 is really a lot “, he pointed out.

Our interlocutor emphasizes that it is of great importance what other European countries will do.

“If prices increase in all European countries, such as Germany, Austria and others, then there are certain indications that this will happen in our country as well. It is not inconceivable that Serbia will follow these trends. I emphasize, it is not impossible to reach this price level. we must be the first to jump with a price and a decision when we have other competitors “, he underlined and added:

“The time of cheap energy has passed, that is essential. Electricity will not be cheap, and there will be problems – production will certainly stop, and products will become more expensive,” the businessman and businessman pointed out.

In addition to businessmen, the bill will obviously be issued to all other citizens who will have to pay as much as 30 percent more expensive for electricity than before.

The representative of the Consumers’ Association “Efektiva”, Jovan Ristic, emphasized that he would “like this information to be incorrect”, but that if Demostat’s claims are true, a real catastrophe will follow.

“It sounds like a real disaster for citizens. I can’t conclude at all on what basis they would justify such a price increase. I have to admit that I haven’t heard of this information so far, but the 30% price increase for citizens is a real disaster, I repeat once again.” said our interlocutor.

He added that such a price of electricity would be a huge burden for household budgets.

“It is an enormous increase in prices. We will see what will happen in big cities, and in the south of Serbia we will not be able to say what will happen. There are many people who have been cut off, who do not have electricity and do not pay for it because they do not I repeat, in the case of a 30 percent increase, it is tantamount to a catastrophe “, added our interlocutor.

Ristic underlined that it is not fair that the citizens of Serbia pay the guild of the EPS leadership, which reminded him of the December disaster after which Serbia started to import electricity.

“It is not fair that citizens pay the guild for what EPS did under the former leadership. We all remember that mud and different digging. Because of all that, we were forced to import too expensive electricity and now the citizens will pay the guild. “Every time they are guilty,” our interlocutor concluded.

On the other hand, there are claims that the mentioned 30% price increase is just a test balloon, and that the citizens are thus preparing for a somewhat lower price increase that will be acceptable to them.

Economist Mihailo Gajić confirmed for Nova.rs that this is preparing the citizens for the price increase, which in the end is to be lower than what is now speculated.

“It’s called anchoring in the economy – you anchor someone’s expectations, and then when they move to a certain side, citizens swallow that new value. In practice, that means 10 percent would be acceptable to them, instead of the 30 percent mentioned,” he said. is our interlocutor.

He added that a similar thing was done in 2014, when pensions were reduced, and the SNS leader was then characterized as a “hero” who reduced pensions by only 10 percent, although more was planned.

“I believe that this is the same tactic we see now. We would have serious disturbances in the market if the price of electricity were 30 percent higher for citizens and 70 percent higher for businessmen. We still do not have clear reasons for raising the price of electricity, let alone this much.” percentage “, concluded our interlocutor.

Energy expert Zeljko Markovic explains the increase in the price of electricity in Serbia by the increase in the price of electricity on world stock exchanges, but also because of the need to import a large part of the electricity from abroad.

“We should expect a price correction, and having in mind the experience so far, we are talking about a state institution that deals with the distribution of electricity, I do not believe that it would be happy to make a decision on drastic price increases,” Markovic said.

However, he is not of the opinion that we will suddenly face a price increase, he points out that it is not excluded that the price increase will come gradually, “in small steps”. Regardless of how the price increase will occur, Markovic estimates that, as the prices of electricity for households and the economy in Serbia are currently such that there is enough room for them to increase, in order to ensure the smooth operation of the Electric Power Industry of Serbia (EPS) , as the main manufacturer, Nova reports.

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