Electricity price increase in Serbia underway as of August 1

In Serbia, as of tomorrow, electricity price will go up by 10,9% for households and 12,5% for trade.

After price increase, an average price of a KWh without VAT will total RSD 6,148 for households (5,35 euro cents) and RSD 5,854 for industry (5,09 euro cents), the Electric Power Industry of Serbia (EPS) informed the Beta agency.

In Serbia, electricity price previously increased April 1, 2011, on the average of 15%.

EPS said that even after the price increase, electricity price for households in Serbia will still be lower compared to the market price and that it will not even cover inflation growth which totaled 14,1.

- If we had submitted the request to the Agency for Energy of the Republic of Serbia (AERS) to calculate current market purchasing price in its methodology of electricity price setting, an increase of 38% would be approved - EPS said.

AERS approved price rise after EPS and five distributions which operate within this public company accepted suggestions of the Agency implying cost reduction and decrease of suggested network losses.

- The objective is to direct funds which generated from expenses rationalization to increase of safety and quality of electricity supplying - AERS said.

The Electric Power Industry of Serbia supplies with electricity some 3,5 million consumers in Serbia.