Serbian President confirms lowering threshold for highest electricity tariff zone starting October

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The President of Serbia, Aleksandar Vučić, announced that from October, the consumption threshold for entering the most expensive electricity tariff—the red zone—will be lowered. This change means that households will more easily fall into the higher-priced tariff, even without increasing their electricity usage.

Vučić shared in an Instagram video that a comprehensive support program for citizens, especially the middle class and lower-income groups, is being prepared, with electricity pricing being a key focus. He acknowledged the challenge posed by lowering the threshold for the red tariff zone but assured efforts to address the issue together with the public.

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Currently, electricity tariffs in Serbia are divided into three zones based on monthly consumption: green (up to 350 kWh), blue (351 to 1,600 kWh), and red (above 1,600 kWh). The proposed change will reduce the red zone entry point to 1,200 kWh starting October 1.

This adjustment was outlined in Serbia’s recent report to the International Monetary Fund (IMF), which explains the move aims to encourage energy efficiency and increase government revenue.

Additionally, Serbia has committed to increasing electricity prices by at least seven percent from October 1, citing the need to improve the financial status of Elektrodistribucija Srbije and invest in energy infrastructure.

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The IMF report also indicates that further electricity price hikes are planned for October 2026, with increases expected to be at least inflation plus one percentage point.

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