Elektroprivreda Srbije (EPS) and Srbijagas reported combined electricity and gas arrears exceeding RSD 143 billion, equivalent to more than €1 billion, as unpaid obligations from municipal utilities, bankrupt companies and state-linked entities continue to weigh on Serbia’s energy-sector balance sheets.
The largest share is held by Srbijagas, where unpaid gas bills exceeded RSD 123 billion in the latest debtor data for May 2026. Overdue electricity payments to EPS were close to RSD 20 billion. The receivables are held by utilities that play central roles in Serbia’s energy supply, industrial competitiveness, public finances and investment programme. Their debtor portfolios include local gas distributors, district-heating operators, industrial companies in bankruptcy, public enterprises and municipal institutions.
The International Monetary Fund has called on Serbia to address the arrears more decisively. Uncollected payments at state-owned utilities can result in later state intervention through recapitalisation, debt assumption, guarantees or liquidity support.
Srbijagas Holds Largest Gas Debts
The largest reported gas debtor was Novi Sad-Gas, owned by the City of Novi Sad, with RSD 29.3 billion in arrears at the end of May 2026. HIP Azotara, which is in bankruptcy, owed approximately RSD 23 billion. JKP Beogradske elektrane, Belgrade’s district-heating company, had gas arrears of more than RSD 14 billion.
The debt of Beogradske elektrane increased from RSD 5.5 billion in 2025 to RSD 14.2 billion by April 2026. The company provides district heating services in Belgrade and is part of the municipal utility system.
Gas arrears are connected to municipal heating plants, local distribution companies, industrial consumers, imported gas obligations and the wider financial position of Srbijagas. Serbia has also pursued gas-sector restructuring, including the separation of infrastructure ownership into a dedicated company.
EPS Debtor List Includes Industrial and Municipal Entities
The largest electricity debtor reported by EPS was Železara Smederevo, which is in bankruptcy and owed RSD 6.29 billion. Other major debtors included JP PEU Resavica, with RSD 2.42 billion in unpaid electricity bills; AD Politika, with RSD 1.47 billion; and JKP Beogradski vodovod i kanalizacija, with RSD 963 million.
Among the 50 largest EPS debtors, 18 companies were reported to be in bankruptcy, liquidation or a pre-arranged reorganisation process. Their combined electricity debt stood at RSD 10.4 billion, representing more than half of the total amount owed by entities on the largest-debtors list. EPS has also reportedly become the largest shareholder in AD Politika, holding a 27.29% stake through 14.67 million shares. The company no longer owns the daily newspaper associated with the Politika name.
Receivables Affect Investment and Financing Capacity
EPS reported a net profit of about €129 million in the first quarter of 2026. The company’s reported earnings and cash collection, however, are separate financial measures. Serbia’s electricity sector requires investment in generation replacement, renewable-energy integration, grid reliability, environmental upgrades and flexible generation capacity. EPS also has obligations linked to generation, maintenance, market operations and decarbonisation.
Srbijagas manages gas supply, gas-system obligations, infrastructure requirements, district-heating demand, industrial users and supply diversification. Serbia’s gas-sector plans also include pipeline infrastructure, storage and future gas-fired generation.
For lenders and investors, the quality of receivables is relevant alongside EBITDA, tariffs, state support, cost recovery and capital expenditure. Renewable projects, battery storage, grid upgrades, environmental compliance and industrial decarbonisation require counterparties with established payment and collection structures.
Tariff Adjustments and Collection Discipline
Serbia has implemented several electricity and gas price adjustments in recent years, partly in response to IMF requirements and partly following the energy crisis. Tariff policy is linked to both price levels and collection. Large unpaid obligations by public-sector and state-linked entities remain alongside tariffs, penalties and tax obligations paid by households, private companies and exporters.
Municipal heating plants, hospitals, public institutions and industrial companies can require continued energy supply because of public-service, employment or regional-development considerations. Outstanding bills at those entities are recorded as receivables at EPS and Srbijagas.
A restructuring process would require debtors to be classified by recoverability, ownership, public-service role and legal status. Debt held by bankrupt industrial companies differs from obligations owed by active municipal utilities, while public companies continuing operations can be subject to repayment schedules. Municipal arrears can be linked to tariff reform, budget transfers or service restructuring.
Claims with low recovery prospects can be impaired in utility financial statements rather than recorded as standard receivables. EPS and Srbijagas remain responsible for electricity and gas supply, infrastructure obligations, security of supply, market operations and investment programmes while carrying the reported arrears.
