Renewables

Prosumers in Serbia disappointed with first electricity bills

prosumers serbia bills calculation

Photo: iStock

Published

July 29, 2022

Country

Comments

0

Share

Published:

July 29, 2022

Country:

Comments:

0

Share

Differences in the interpretation of the regulatory framework at the Ministry of Finance and the Ministry of Mining and Energy led to higher bills and created confusion among the first prosumers in Serbia, but also among those who intend to install solar panels.It could jeopardize the implementation of an excellent idea, so the two sides need to sit down as soon as possible and find a way out. There are also many questions about what prosumers actually pay for and what they will pay in the coming months.

The first bills received by prosumers were certainly not reduced as much as they or the Ministry of Mining and Energy expected. State-owned power utility Elektroprivreda Srbije (EPS) followed the interpretation of the Ministry of Finance on the calculation, so the bills were reduced by about 30%. However, if EPS has implemented the Decree on the Criteria, Conditions, and the Method of Billing between Prosumers and Suppliers, proposed by the Ministry of Mining and Energy and adopted by the Government of Serbia, the bills would have been lowered by 50%.

The Ministry of Mining and Energy told Balkan Green Energy News that the Ministry of Finance gave its consent for the adoption of the decree, which is a regular procedure, but that it later refused to act in line with it and an issued an opposite opinion to EPS. The Ministry of Finance failed to comment.

Ministry of Energy: The Ministry of Finance agreed to back the decree, but afterwards it changed its mind

EPS has requested an opinion on the basis of which it then made the calculation. The company wanted interpretation because the decree defines the calculation of the value-added tax (VAT), excise duty and fees differently than in the laws that regulate the issues.

Ministry of Finance cited three laws – on fees for the use of public goods, VAT, and excise duties, while the Ministry of Mining and Energy defended its position by pointing to the decree.

Two different angles: calculation on the basis of the taken energy or on the basis of the energy consumed

The essence of the issue is that the Ministry of Finance believes VAT, excise duty, and fees for privileged energy producers and energy efficiency must be paid on the energy taken (withdrawn) from EPS’s grid. However, the Ministry of Mining and Energy believes that the items should be calculated on the energy that the prosumer consumes, meaning the difference between the electricity the prosumer delivered to EPS and the electricity it withdrew from EPS.

If the position of the Ministry of Finance is applied to the prosumer’s bill, which before the installation of solar panels was about RSD 2,500 (EUR 21), the prosumer will have to pay about RSD 1,700 (EUR 14.5), which is a decrease of 30%. According to the position of the Ministry of Mining and Energy, the bill would amount to about RSD 1,300 (EUR 11), or almost a 50% decrease.

There is no information on when the problem could be solved

Reducing bills is important to motivate consumers to become prosumers. A rooftop solar power plant costs about EUR 1,000 per kilowatt, and households usually install systems of 5-10 kW. The investment would pay off sooner if the bill is reduced by 30% instead of 50%.

Asked how and when the problem will be solved, the Ministry of Mining and Energy answered it would continue to seek the best solution for prosumers in dialogue with the Ministry of Finance. The World Bank is preparing an analysis of Serbia’s regulatory framework for prosumers to propose how the bill could be reduced, the Ministry of Mining and Energy told Balkan Green Energy News.

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

unpaid-electricty-bills-kosovo-kostt

Kosovo* allocates EUR 40 million to cover unpaid electricity bills in northern municipalities

11 August 2022 - Residents of the four Serb-majority municipalities in the north of Kosovo* have not been paying electricity bills for over two decades

SEEPEX chief Power prices Southeastern Europe EUR 500 MWh fourth quarter

SEEPEX chief: Power prices in Southeastern Europe reach EUR 500 per MWh for Q4 2022

11 August 2022 - Futures for settlement in the fourth quarter indicate an electricity price in Southeastern Europe of EUR 500 per MWh, chief of SEEPEX Miloš Mladenović said

Drought-lowers-hydropower-plant-output-Serbia-Europe

Drought lowers hydropower plant output in Serbia, Europe

10 August 2022 - The water flow in Serbia's hydropower system dropped by a half, increasing the need for electricity imports, but the situation is similar across Europe

Norway power export controls drought hydropower reservoirs

Norway to impose power export controls

09 August 2022 - Norway is preparing a framework for limiting electricity exports at times when the levels of water in hydropower accumulations are low