Demostat: Price of Electricity to Increase, Prices for the Economy to Be Gradually Higher up to 70%

The current price of electrical energy will not last for long and a new one, even higher for both the economy and the households, will be set in the coming period, writes Demostat.

Citing its findings from sources close to the Government of Serbia, Demostat says that the aim of the authorities is to increase the price of electricity for the economy in stages up to the total amount of 70%.

Two stages within that campaign have been realized so far, the first one on January 1, when the price was set at EUR 75 per MWh, and the second from September 1, when it was raised to EUR 95 per MWh for the economy.

The campaign will last until the goal of having a total percentage of the price increase for the economy at the planned 70% is met, Demostat says.

– It is entirely clear from what’s been said that, for the Government, “the protection of the economy” and “the subsidized price” mean that the price for companies is increased gradually. So, using the growth principles that Demostat wrote about – the article says.

What the authorities see as their “aid” to the economy, companies, on the other hand, consider a new charge in the crisis conditions that jeopardizes their existence and the existence of their employees.

According to the expert public, the entirely certain endgame of every electricity price increase for the economy is that company owners, in order to compensate for the costs and realize the desired profit, will increase the prices of their products and services, Demostat adds.

In practice, the article says, that means that the price will ultimately be paid by the citizens of Serbia as the end-consumers. Each new price increase leads to an inflation shock, which creates great problems for both the citizens and the state.

When it comes to the announced electricity price increase for households, it is entirely clear that it will have a negative impact, that is, that it will lead to a reduction of the already low living standard of citizens in the crisis conditions caused by the coronavirus epidemic and the Russian military campaign in Ukraine.

As a reminder, Demostat adds, the price of electricity for households last increased on September 1, by 6.5%.

Vlada Republike Srbije

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