The price of electricity for firms in Serbia should surge 8% to around EUR 103 per megawatt-hour (MWh) on January 1.
The price for businesses was EUR 50 per MWh to 70 per MWh last year before the start of the energy crisis, which means it would spike 100% or more in some cases in one year.
Danas reported that the tariff for firms would increase by 8% to EUR 102.6 per MWh. Domestic companies have already received supply contracts for 2023 with the new price, from state-owned power utility Elektroprivreda Srbije (EPS), according to the Serbian news outlet.
Minister of Mining and Energy Dubravka Đedović announced last month that tariffs for households would jump 10%. She did not mention the business sector at the time, but it was clear that the government was preparing new prices for companies as well.
Over the next year and a half, the price will be increased by another 26%
Of note, the tariff for firms doubled gradually. After the energy crisis erupted, the price was frozen at the end of October last year. It was capped at EUR 75 per MWh from January to June this year, after which it was raised on September 1 to EUR 95 per MWh.
Until then, market prices of electricity in the region have already reached as high as EUR 500 per MWh, compared to peaks of above EUR 600 per MWh on foreign exchanges.
There are more energy price increases in Serbia ahead. As part of the arrangement with the International Monetary Fund (IMF), the Government of Serbia has committed itself to raise the prices of electricity by 26% and prices of natural gas by 30% from May 2023 to May 2024.
Of note, according to the latest update, the price of electricity for firms in Slovenia next year will be around EUR 200 per MWh. The Republic of Srpska, one of two entities making up Bosnia and Herzegovina, will boost the local tariff to around EUR 65 per MWh.