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Rising energy costs: Households concerned about heating price adjustments in Belgrade

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Since 2022, gas prices have surged by a cumulative 50.4%, while electricity prices have skyrocketed by 149%. Despite the mild winter last year and sufficient energy reserves, many households connected to district heating feel there should be no further price hikes. However, Beogradske Elektrane (Belgrade Power Plants) has indicated that they cannot store gas, making it impossible to reserve supplies for the upcoming winter. They attribute the need for a price adjustment to the substantial increases in gas and electricity costs since 2022. In the same timeframe, the price of thermal energy for households has risen by 21.2%, including a projected adjustment on October 1, 2024.

The utility company arranges gas purchases for each heating season, paying monthly and billing based on actual consumption readings from thermal sources.

A regulation limiting gas prices was in effect until May 2024, after which Srbijagas, the gas supplier, began adjusting prices monthly.

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To determine the price of thermal energy, Beogradske Elektrane follows the Serbian government’s regulation on pricing methodology for end consumers. Prices are based on reports from the previous regulatory period, and the company is required to submit a written request for approval of new prices for the upcoming heating season to the relevant authority by September 1.

By this date, the energy provider must propose new prices to the local government based on past reports, which detail changes in input costs for thermal energy production, consumption data, and other operational reports. The pricing structure consists of a fixed and variable component. According to Beogradske Elektrane, there have been no reductions in variable costs, as energy, fuel, and water costs have risen, while thermal energy prices have remained stable. The new price, based on this methodology, has been proposed to the local government.

In response to inquiries about requests from households wishing to disconnect from the heating network—many residents have expressed frustration over paying year-round but only using heat for a few months—Beogradske Elektrane confirmed that 75 disconnection requests have been submitted since the beginning of the year.

Consumers typically opt for disconnection when switching to alternative heating methods, when they no longer occupy the space, or due to high costs, as noted by the utility company.

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