In Serbia, Elektroprivreda Srbije (EPS) is currently revising its approach to pricing electricity, introducing a system that mirrors market fluctuations. However, while this shift promises flexibility, concerns arise regarding its impact on businesses and consumers, and the underlying reasons for these changes.
Recent offers sent by EPS to businesses feature prices that vary, resembling those seen on the electricity market. This departure from fixed rates prompts questions about who benefits from such regulatory shifts. Moreover, it raises doubts about why domestic industries and citizens bear the brunt of any negative consequences stemming from these changes.
There’s a pervasive uncertainty about the rationale behind these adjustments. Is EPS’s financial strain so severe that neither the substantial IMF loan nor increased prices for consumers and industries could alleviate it? Or is the state, which oversees EPS and established the electricity exchange, playing a role in shaping market dynamics to protect consumers?
The Serbian Chamber of Commerce (PKS) sheds light on the recent stabilization of wholesale electricity prices following the end of the energy crisis in Europe. This stabilization rendered the previous practice of limiting retail electricity prices unnecessary. Consequently, EPS now offers contracts based on market principles, allowing for greater flexibility in pricing. However, the varying prices, ranging from 84 to 97 euros per megawatt-hour, have left many businesses grappling with the unpredictability of the market.
Transparency remains a critical issue in Serbia’s business landscape. Despite the existence of the electricity exchange since December 2022, daily trading only began last year. This lack of clarity adds complexity to the situation, leaving businesses and consumers uncertain about the future of electricity pricing and its implications for them.
