Government of Serbia keeps electricity prices at EUR 75 per MWh until end of August

The price of electricity for companies in Serbia, supplied by state-owned power utility Elektroprivreda Srbije, will remain at EUR 75 per megawatt-hour (MWh) after June 30. The price for last resort supply will also stay the same – EUR 97.5.

The Government of Serbia has decided to keep electricity tariffs frozen to ease the burden of the price spike on consumers amid the energy crisis. Prices are limited to EUR 75 from January 1 to June 30.

Of note, a few weeks ago, EPS requested a 20% to 40% increase in the price of electricity. Minister of Mining and Energy Zorana Mihajlović backed the request saying that it must happen as soon as possible, but Serbia’s President Aleksandar Vučić said it would but not immediately.

Now the government announced that in order to protect the market, economy and citizens, it has decided that from July 1 to August 31 the price of electricity for consumers on the commercial market would be EUR 75 per MWh without value-added tax.

EPS offered a price of EUR 220 for supply after June 30

According to the government, due to the major increase in prices on power exchanges in the last few months, it has recommended to EPS to set the price for the last resort supply at EUR 97.5 without VAT in order not to jeopardize the business environment in Serbia.

Prices on European power exchanges currently range from EUR 140 to EUR 250, compared to between EUR 160 and EUR 190 in Southeastern Europe.

Before the cabinet’s latest move, EPS set its price for the supply from July 1 at EUR 220.

The government first decided to intervene in the market in November last year. In December it recommended to EPS not to increase prices for new contracts. After that it as decided to limit the price to EUR 75 from January 1 to June 30.