The Serbian Government will soon inform the public of its decision to increase the price of electricity for business users from 95 to 120 Euro per megawatt hour (MWh), the Demostat Research and Publishing Center learns from well-informed sources.

The new price will be announced well before the end of the calendar year, said Demostat.

According to experts, this will deliver a new blow to the economy, especially to the businesses whose production is fully dependent on electricity and, as usual, consumers will be the ones to pay the price because the prices of products and services will go up.

The price increase will trigger a new inflationary shock that will additionally lower the already low living standard of the people in times of the crisis caused by the Covid-19 pandemic and Russia’s intervention in Ukraine.

On August 30 this year the Serbian Government said that the price of electricity for businesses, supplied by the Serbian power company (EPS), would increase from 75 Euro per megawatt hour to 95 Euro per megawatt hour.

Citing sources close to the Serbian Government, Demostat says that the Government is planning to raise the price of electricity in phases, and that the total increase will amount to 70 percent.

„We are in a situation where Serbia does not produce enough electricity for its own needs. Consequently, we are forced to import electricity from abroad, and that costs money. Therefore, it is logical that the price of electricity is going up, and the economy will have to respond by increasing the prices of its products. In this way, the burden of electricity price increases will be passed on to customers, and inflation will increase,“ said energy expert Vojislav Vuletic.