The Government of Serbia intends to regularly index electricity prices to inflation, begin workforce optimization at state-owned power utility Elektroprivreda Srbije, and prepare a plan to facilitate permitting for solar power plants, according to its commitments to the International Monetary Fund.
The Executive Board of the International Monetary Fund (IMF) has concluded the third review under the Policy Coordination Instrument for Serbia.
The board has confirmed the successful completion of the third review, the Ministry of Finance and the National Bank of Serbia (NBS) said.
The Program Statement, an integral part of the review, was signed by Prime Minister Đuro Macut, Minister of Finance Siniša Mali, and NBS Governor Jorgovanka Tabaković.
The authorities intend to propose the next price indexation by end-2026
Serbia’s policies aim to ensure energy security, cost recovery, and fiscal space for necessary investment, and to improve the efficiency and governance of state-owned energy enterprises, while mitigating fiscal risks, the statement reads.
The authorities are committed to regular inflation-linked indexation of household electricity tariffs. They intend to propose the next indexation by the end of 2026.
“We also plan to review the current block tariff structure and outline reform options by end-August 2026,” the document underlines.
The last change was introduced in 2025.
External consultants are preparing a restructuring plan for distribution system operator EDS
The government and the central bank noted that the program to support energy-vulnerable consumers was expanded from 75,000 to 195,000 beneficiaries last year, adding that further expansion may be considered.
Regarding the reform of state-owned enterprises, the authorities aim to accelerate the implementation of Elektroprivreda Srbije’s (EPS) restructuring plan, including by commencing personnel optimization in support functions by early 2027.
For its part, the IMF stressed that “restructuring efforts at EPS should accelerate to achieve timely workforce rationalization and stronger governance ahead of planned large-scale investments.”
“To improve the operational efficiency of Elektrodistribucija Srbije (EDS), we have engaged external consultants to prepare an EDS restructuring plan, which we intend to adopt by end-June 2026,” the authorities said.
EDS is the country’s distribution system operator (DSO).
Action plan to support increased deployment of solar power plants
Serbia also intends to facilitate private energy investments, including in renewables.
To address bottlenecks in the permitting for solar installations that may be hindering their uptake, the Ministry of Mining and Energy will identify key constraints in the current permitting process.
In consultation with relevant stakeholders, including the Ministry of Construction, Transportation, and Infrastructure and DSO EDS, the authorities will prepare, by end-August 2026, a time-bound action plan to streamline procedures, reduce administrative burdens, and support increased deployment of solar installations, according to the Program Statement.
