Price of Electricity for Companies in Serbia Cheaper by 25% from May 1?

The price of electrical energy for commercial supply in Serbia, that is, for companies, should drop by around 25% from May 1, because the prices of that energy source have dropped in the market, said the energy expert Zeljko Markovic.

He said for the Beta new agency that Elektroprivreda Srbije (EPS) had agreed the price of electrical energy for the economy relative to the prices in the market and that that manner of setting the price had been changed due to the energy crisis, with the multiple increase of the prices.

– The prices for commercial supply are free and they are formed based on supply and demand. As the prices in the market have dropped, with the average ones now amounting to around EUR 90 per megawatt-hour (MWh), and companies pay EUR 120 per MWh, I expect the price to drop by around 25% – said Markovic.

The acting director of EPS, Dusan Zivkovic, said that EPS was working intensively with the Ministry of Mining and Energy to change the methodology by which the price of electrical energy for companies would be formed from May 1, so that it would follow the prices in the market and “it is likely that it will drop.”

Between 2014 and the onset of the energy crisis, EPS, as Markovic said, calculated the price for companies based on an internal methodology, in line with the price in the market.

In the energy crisis period, when electricity cost EUR 200-300 per MWh, the Government of Serbia, Markovic reminded, recommended to EPS the price for the economy and that company, which is state-owned, accepted it in order to protect the economy from high costs.

– Since the prices of electricity have returned to a relatively normal level, there is no more need for recommendations, but they should be set based on the market conditions instead – said Markovic.

The purchasers, according to him, usually agree the annual prices of electrical energy with EPS, so if a price of EUR 80-90 per MWh is agreed for a one-year period, it will still apply, regardless of whether the price of the energy source increases or decreases in the market in the meantime.

The agreement between the supplier and the purchaser, as he said, can always be terminated before it expires, whether with “penalties” or without them, which is a matter of the terms of the contract.

Markovic said that the supply of electrical energy could also be agreed for a shorter term, for three or six months, but that the price would not be the same as in one-year contract. According to him, the price of electrical energy depends on the volume of the supply and the period in which it is delivered and can’t be the same for one-year contracts and for contracts covering only the summer period, when it is usually the lowest.

Elektroprivreda Srbije ad Beograd

Ministarstvo rudarstva i energetike Republike Srbije

Vlada Republike Srbije

Elektroprivreda Srbije

EPS

Ministry of Mining and Energy

Government of Serbia

Željko Marković

Dušan Živković

electricity

price of electricity

electricity for companies