Despite frequent statements by domestic officials claiming that Serbia offers the lowest electricity and gas prices in Europe, recent Eurostat data for the second half of 2024 paints a different picture. According to the statistics, Serbia no longer holds the position of the cheapest energy provider on the continent. Instead, it finds itself closer to the middle of the rankings.
For example, when it comes to electricity prices for households, citizens of countries such as Turkey, Georgia, Hungary, Bosnia and Herzegovina, Montenegro, Albania, Bulgaria, and the Netherlands paid less than Serbian citizens, who were charged 0.1260 euros per kilowatt-hour in the second half of last year.
Eurostat does not provide data for North Macedonia and Ukraine, but previous reports suggest that these countries also had lower electricity prices than Serbia.
On the other hand, Ireland, Germany, and Denmark had the highest electricity prices for households in the second half of 2024. It is worth noting that Serbia did not increase its electricity prices for households last year, with the last price adjustment occurring in November 2023 with an eight percent increase.
The situation becomes even more challenging when it comes to electricity prices for the economy. The cost of electricity is now a significant burden for Serbian businesses, as pointed out by many entrepreneurs. Countries like Norway, Georgia, Finland, Montenegro, Sweden, Bosnia and Herzegovina, Moldova, Turkey, Malta, Albania, and Bulgaria had cheaper electricity prices for their economies than Serbia, where the price stood at 0.1593 euros per kilowatt-hour. Eurostat does not publish data for Montenegro and Ukraine in this category, but it is assumed that these countries’ electricity prices are lower than Serbia’s.
Cyprus, Denmark and Hungary had the most expensive electricity prices for businesses in Europe during the second half of last year.
Gas prices: Favorable, but not as good as claimed
When it comes to gas prices, Serbia’s rates are more favorable than electricity prices, but still not as low as often claimed by state officials. According to Eurostat data, countries like Hungary, Georgia, Turkey, and Croatia have lower gas prices for households than Serbia, which saw a price of 0.0492 euros per kilowatt-hour in the second half of 2024.
It should be noted that gas prices for Serbian households were last increased in November 2023 by 10 percent, aligning with the electricity price hike. Sweden, the Netherlands, and Italy had the highest gas prices for households in Europe during the second half of last year.
In terms of gas prices for businesses, Serbia is also closer to the bottom of the list. Countries with cheaper gas prices for businesses include Georgia, Turkey, Greece, Bulgaria, and Croatia.
Interestingly, Hungary, despite having lower gas prices for households, faces significantly higher prices for businesses, placing it in the middle of the rankings.
For example, while Serbia’s gas price for businesses averaged 0.0557 euros per kilowatt-hour in the second half of last year, Hungary’s price was 0.0750 euros per kilowatt-hour. Sweden, Liechtenstein, and Finland had the highest gas prices for businesses in Europe.
Price increases since 2020
When compared to 2020, both electricity and gas prices in Serbia have seen significant increases. In the first half of 2020, the price of electricity for households in Serbia was 0.0863 euros per kilowatt-hour. By the second half of 2024, this had risen to 0.1260 euros, marking an increase of around 46 percent.
For businesses, electricity prices have risen by about 62 percent, from 0.0976 euros per kilowatt-hour in the first half of 2020 to 0.1593 euros per kilowatt-hour in the second half of 2024.
Gas prices have also increased by 46 percent for households, from 0.0337 euros per kilowatt-hour in the first half of 2020 to 0.0492 euros in the second half of 2024. Gas prices for businesses increased by about 40 percent during the same period, from 0.0398 euros per kilowatt-hour to 0.0557 euros per kilowatt-hour.
Purchasing power and energy prices
When considering the purchasing power standard (PPS), electricity prices for households were among the lowest in countries like the Netherlands, Hungary, Iceland, Malta, Albania, Turkey, Luxembourg, Montenegro, Bosnia and Herzegovina, Bulgaria, and only then Serbia.
For gas prices, Serbia ranks among the more affordable countries, along with Hungary, Luxembourg, Croatia, Turkey, Slovakia, and Lithuania.
