The prices of some construction materials have doubled before the start of the implementation of the state project by which Serbia will financially help the citizens to replace the old carpentry with new ones and install insulation in residential buildings. However, producers who intend to make a big profit quickly can end up empty-handed, because there is a way to “calm them down”.
The deadline given to local self-governments for submitting applications to the public invitation of the Ministry of Mining and Energy for the allocation of funds for financing the energy rehabilitation of residential buildings, family houses and apartments expired on Friday at 3 p.m.
Twice the price of construction materials
Local governments have applied for funds that, according to the new Law on Energy Efficiency and Rational Use of Energy, will help citizens replace carpentry and repair insulation, in order to reduce energy consumption throughout Serbia. The highest amount that the local self-government can receive for that need is 10 million euros. By the New Year, 300,000 households are expected to start replacing dilapidated windows and doors and installing insulation.
On the eve of the beginning of the implementation of that state project, as Sputnik learns from the Construction Chamber of Serbia, the prices of construction materials have increased significantly. Some even – double.
“Concrete iron jumped from 40 to 60 percent. Material 200 percent. The prices of insulating materials, such as mineral wool and styrofoam, jumped from 80 to 100 percent. I’m not sure how much carpentry and paints and varnishes have jumped. They are certainly for some 30, 40 percent. The price of gypsum has risen a lot. Bricks and tiles jumped the least, by five percent,” warns the vice president of the Construction Chamber of Serbia, Goran Rodic.
The state will “calm down” the producers
Rodic explains that prices have risen not only in Serbia, but also in the world, and adds that it is not surprising that the prices of plastic joinery will be even higher, because the price of oil, from whose derivatives it is made, has also jumped. However, he claims that the state will “calm down” the prices.
“They will tell the producers who are starting to ‘go wild’ with the prices that their carpentry will not be in the part that the state will stimulate at all. It will not forbid them to sell, but, simply, such companies will not be subject to this state program, but the Germans will come, so when their prices are halved, then they will be surprised. Since we are import-dependent, a very unpleasant situation can be created for our economy, to allow carpentry to enter from abroad, which can be far cheaper than domestic. Then the home team will whine, but then there is no salvation.”
Rodic does not see the problem in raising prices, but in exaggerating it. He points out that the state should invite producers to do a price analysis, in order to see which parameters affect them and increase them according to the level of inflation.
Credit lines for Serbian citizens
As he says, the price of installing plastic carpentry in a two-room apartment is currently around 1,200 euros, of which the state would pay 600, and the rest to the citizens, who will most likely be granted credit lines for that, which he considers very acceptable. He estimates that the start of work in 300,000 households by the end of the year is a feasible intention.
“It is very good that the state initiated this. It is good for everyone, both for the people and for the state and for production. We supported that, now we must not let it go wild, so that it does not fall into the water,” Rodic said.
It should be reminded that local self-government units selected by the Ministry will select citizens who will apply for the realization of the project through a public call. A public call should be announced in early July. The costs of preparing the application documentation will be borne by the owners of the facilities.
Municipalities and cities will announce another public call intended for companies. Local governments will then select companies that will change the carpentry and install insulation. The Directorate for Energy Efficiency, which should start working in June, will finance together with the local self-governments half of the costs of the citizens for the energy rehabilitation of residential buildings.
By the way, the Law on the Use of Renewable Energy Sources was passed, which, among other things, will enable a much larger number of people to install solar panels on the roofs of their houses or buildings.
According to Energy Minister Zorana Mihajlovic, the state will spend at least 150 million euros a year to increase energy efficiency, because due to poor insulation, Serbia consumes four to five times more electricity and heat than the EU, and 40 percent of energy is “thrown through window”, Sputnik News reports.
