Electricity

IMF calls for raising electricity tariffs in Serbia

IMF tariffs

Photo: Pixabay

Published

July 22, 2019

Country

Comments

0

Share

Published:

July 22, 2019

Country:

Comments:

0

Share

Electricity tariffs in Serbia have not changed in two years and should be raised, International Monetary Fund (IMF) Resident Representative in Belgrade Sebastian Sosa has told a news conference, local media reported.

Electricity tariffs in Serbia should at least be adjusted for inflation, Sosa said, also noting that the country will have to transition to cleaner energy sources and that electricity tariffs should be raised gradually due to social implications.

Presenting the completed second review of Serbia’s economic performance under the Policy Coordination Instrument (PCI), Sosa also said that the IMF supports the authorities’ plan to close some of the mines operated by underground coal mining PEU Resavica, which the government supports with subsidies.

The closure of mines that are not feasible should be accompanied by a social program for vulnerable groups that would be affected, he said.

Fiscal Council advises power utility’s reform before raising electricity prices

The Fiscal Council said earlier that Serbia’s state power utility Elektroprivreda Srbije (EPS) must step up investments in order to boost production capacities and meet environmental protection standards, which requires first implementing the company’s long-delayed reform and reducing power distribution losses, slashing or aborting the channeling of EPS’ profits into the state budget, and only then increasing electricity prices.

In its opinion on the draft fiscal strategy for 2020 with projections for 2021 and 2022 and accompanying documents, the Fiscal Council said that EPS’ underinvestment is among the leading reasons for Serbia’s economic growth slowdown compared to other countries of Central and Eastern Europe (CEE).

EPS should invest at least around EUR 3 billion in the construction of new and rehabilitation of the existing power plants, coal production and homogenization, and the reduction of power distribution losses by the end of 2025, the Fiscal Council said.

EPS is the top polluter in Serbia and among the biggest polluters in Europe, the Fiscal Council notes. Thermal power plants owned by EPS are among the most polluting coal power plants in Europe, the Fiscal Council recalls, noting that EPS needs to invest at least EUR 800 million by the end of 2025 to meet the national and EU regulations concerning environmental protection.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment

Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Bulgaria hints possible closure all coal-fired power plants mid 2025 Maritsa East

Bulgaria hints at possible closure of all coal-fired power plants by mid-2025

02 August 2021 - The current version of the National Recovery and Resilience Plan may lead to a rapid coal exit in Bulgaria as the Maritsa East complex would be shut down

Serbia EMS consultant EUR 59 million overhead power line

Serbia’s EMS seeks consultant for EUR 59 million overhead power line project

30 July 2021 - EMS will pick a consulting firm for the construction of a double circuit 400 kV overhead transmission line between Obrenovac and Bajina Bašta

croatia recovery resilience plan rimac ina

Croatia’s recovery and resilience plan: EUR 200 million for Rimac autonomous taxis

30 July 2021 - The country earmarked EUR 200 million from its recovery and resilience plan for Rimac's urban mobility ecosystem with electric autonomous taxis.

Bajgora wind park Kosovo linked grid overhead line

Bajgora wind park in Kosovo* linked to grid with 20-kilometer overhead line

29 July 2021 - KOSTT energized the 110 kV high-voltage line between substation Vushtrri 1 and wind power plant Bajgora of 105 MW, which is under construction