Serbia has entered the new autumn with another electricity price increase of 6.6% and a lowered threshold for the “red zone” from 1,600 to 1,200 kWh. Previous hikes in January, May, and November 2023—each around 8%—have ended Serbia’s status as having the cheapest electricity in Europe. Eurostat data for the second half of 2024 show that only citizens of Turkey, Georgia, Hungary, Bosnia and Herzegovina, Montenegro, Albania, Bulgaria, and the Netherlands paid less for electricity than Serbian households.
Analysts note that electricity prices in Serbia would be lower if not for state-imposed charges, which account for roughly 30% of the total retail price. This share is comparable to many Western European countries, including Italy, Germany, Finland, Portugal, and others, while the EU average stood at 25.1%. Some countries, like Luxembourg, even recorded negative taxes due to subsidies and compensation schemes.
For businesses, state charges are much lower, at just over 10% of the total electricity cost. Nevertheless, the overall electricity price for Serbian companies remains higher than in 11 other European countries, placing local businesses at a disadvantage compared to households.
Nenad Bumbić, president of the consumer protection association, emphasizes that these state charges fund important public needs, including subsidies for renewable energy and the public media service. He notes that shifting these costs to businesses would likely lead to higher prices for consumers anyway, leaving no simple solution. Bumbić argues that the only sustainable approach is improving efficiency in the public energy sector. A more efficient state utility, EPS, could potentially allow a reduction in electricity costs or the share of state-imposed charges, but such reforms will take time and are unlikely to occur rapidly.
