This could be a limited price when signing new contracts for delivery to large consumers, Politika has learned.
Businessmen in Serbia could conclude new contracts for the supply of electricity with EPS at a price of 80 to 85 euros per megawatt-hour. That would be the limit according to which the largest public company would sell them electricity in the coming months until the situation with the price of electricity stabilizes, which in the middle of the week reached 300 euros per megawatt-hour on the stock exchanges. The decision on the limited price of electricity due to extraordinary circumstances should be made by the Government of Serbia through a special decree, so that this would be binding and not just a recommendation.
It is expected that these agreements should be valid for those who have already renewed them, but also for those who have yet to do so. Most of the businessmen we spoke to yesterday were thrilled with this news. They say that it would be good to make it official as soon as possible so that all of them can make business plans for the next year, because it depends on the price of electricity and whether and to what extent they will have to increase the final price.
Toplica Spasojevic, the president of the company ITM Group, says that he has not heard about this proposal, but if it is true, he welcomes such an idea of the Chamber of Commerce of Serbia and the state. Since we have our own coal production, and we still do not pay for decarbonization, which burdens the price of electricity in Europe now by 60 euros, that could be space for EPS to reduce the price of electricity for the economy, without being at a loss.
He notes that he was lucky and that he renewed his contract with EPS in July, when electricity was not so expensive yet, so now he pays 89 euros, and before that it cost him 52 euros per megawatt.
– If it is limited to 80 or 85, it will mean a lot to me because I pay 180,000 euros a month for electricity only for the refrigerator in Apatin. And before that, it cost 100,000 euros, which increased the cost in my total production from three to five estimates – Spasojevic emphasizes.
– This is about resetting the entire world economy in order to cover the costs of the pandemic. The big ones and those who managed to agree on a good price with EPS will survive, but small producers will most likely have to close the plants – he emphasizes and adds that a transitional solution is definitely needed at this time. Just as the state reacted with excellent measures when the pandemic of Covid 10 started, and the NBS did the same, so now we should help everyone get through this as painlessly as possible.
Zoran Matijevic, the son of the well-known meat producer Matijevic, states that he heard the proposal of PKS and explains that those who signed a contract with EPS for new electricity deliveries of 100 euros per megawatt, have already received a discount.
– We are not ready for such a big jump in the price of electricity. This is like thunder from the clear sky. Our old contract was priced at 48 euros per megawatt-hour, and the new one is 100 euros, which means that the minimum due to that, the final product should increase by five to ten percent. But it is not just about expensive electricity, but also everything else – he notes.
The owner of the largest bakery in Serbia, “Don Don”, Ales Muzetic, says that he is familiar with the proposal of PKS on limiting the price of electricity for the economy, but he is much more worried about the jump in the price of raw materials by as much as 50 percent.
– The costs of electricity in our total production participate with five, but the raw materials with 50 percent. Only wheat has risen in price from 15 to 20 cents, packaging – boxes of cardboard foil by 50 percent, which has already led to an increase in prices from September 1, but if nothing changes, there will be at least another price increase by the end of the year – says Muzetic.
Zeljko Markovic, a master and leader for the energy sector in “Deloitte” and one of the former directors in EPS, explains that if this information on limited prices is confirmed, it will be good for both the economy and EPS. Provided that the winter is not very cold and that EPS is not forced to import additional expensive electricity. By the way, this public company contracts new annual deliveries at a price of around 139 euros per megawatt-hour.
– With the proposal of 80 or 85 euros per megawatt, EPS will be able to cover production costs. With a 10 euro higher price, he would have money for new investments, but in any case, this is a good price for EPS – he emphasizes.
Bulgaria has already introduced benefits for consumers by reducing the price by 26 euros, so instead of 139 per megawatt, they pay around 110-113 euros, concludes Markovic.
The new electricity contract is three times bigger than the previous one
Predrag Orescanin, vice president of the Association of Refrigerators, says that the distributor of EPS has just sent him an offer of a new contract with a price three times higher than the one he is currently paying. His contract expires on December 31 and he will have no choice but to accept it. Business will be difficult, but he states that adjustment is inevitable, because he cannot close the refrigerator.
– I know that the price of electricity has jumped in Europe, but it is produced there from gas, which has become more expensive. I understand that the price of electricity is market, but the inputs for electricity production have not increased in our country. It is said that that is why the government will do something – Orescanin notes.
He explains that in our country, only on paper, cheaper electricity costs three, and collects five euro cents, which is an average price for his refrigerator below four euro cents. But, with all duties, VAT of 20 percent, excise of 7.5 percent and other taxes, a kilowatt costs 8.5 euro cents, Politika reports.
