The International Monetary Fund (IMF) reported that electricity prices for households in Serbia are expected to rise by at least seven percent by the end of September. This increase is causing concern among businesses, as it significantly raises production costs, reduces competitiveness both domestically and internationally, and may lead to higher prices for final products.
At a recent Serbian Chamber of Commerce (PKS) meeting, Minister of Economy Adrijana Mesarović and PKS President Marko Čadež emphasized the urgent need for continuous dialogue between the Electric Power Industry of Serbia (EPS) and businesses to find a sustainable electricity pricing solution.
Bojan Stanić from PKS noted that electricity in Serbia is no longer the cheapest in the region, and further price hikes would negatively impact the economy’s competitiveness. He stressed the importance of a state-economy agreement, including EPS, to ease production costs without harming domestic production.
Deja Gavrilović from the consumer association Effectiva explained that increased electricity costs typically lead to higher product and service prices, which then contribute to inflation. She observed that past electricity price hikes have correlated with rises in inflation.
Stanić also highlighted that while household electricity prices are subsidized, businesses face market prices, and the recent sudden increases in electricity costs have strained the economy. He expressed hope that negotiations might lead to a smaller or delayed price increase.
Both experts agree that consumers will feel the impact both directly through higher electricity bills and indirectly through increased prices of goods and services.
