Serbian government caps electricity prices for firms at EUR 75 per MWh

The Government of Serbia issued a recommendation to power utility Elektroprivreda Srbije (EPS) to set the price for companies at EUR 75 per MWh for the period through June. The recommended price for the defense industry is EUR 68 per MWh.

Consumers in Serbia excluding households pay market prices so the decision by the Serbian government could mean a rise for some and a reduction for others.

The move was another intervention in the electricity market with regard to the energy crisis caused by a spike in electricity and gas prices. The government ordered EPS to freeze prices for the corporate sector for November and in December. A similar decision was made ten days ago by the Republic of Srpska, one of the two entities that make up Bosnia and Herzegovina.

The price of EUR 75 per MWh is recommended for all new contracts, but also for existing ones, if the contracted prices are higher

According to the Ministry of Economy, the Government of Serbia recommended to the state-owned company to set the price in the commercial market at EUR 75 per MWh excluding value-added tax for the six-month period until the end of June 30.

The decision also refers to the existing contracts with prices above EUR 75, and for the contracts that would expire by June 30, 2022, the ministry said.

The price for last resort supply has increased from EUR 67 to EUR 97

The government also recommended an increase in the price for last resort supply from EUR 66.72 to EUR 97.50 excluding VAT in the period from January until mid-year.

The government recommended to EPS to charge the defense industry EUR 68 per MWh excluding VAT.