President of Serbia Aleksandar Vučić confirmed that from October the threshold for entering the most expensive, red zone by consumption electricity be reduced.
In practice, this means that households will more easily enter a more expensive tariff, even if they do not increase consumption, writes Katarina Pantelić for The new economy.
In a video posted on Instagram, Vučić said that "a comprehensive program to support the people, especially the middle class and poorer people, is being prepared."
Among other things, he referred to electricity.
"Problems also begin with the fact that the level of entry into the red for cheap electricity is going down. We will see to it that we solve these problems together with you," said Vučić.
What it means?
Electricity in Serbia, depending on consumption, is paid for in three tariffs - green, blue and red.
In the green zone, at the lowest tariff, electricity is charged to those citizens who consume less than 350 kWh per month. With a consumption of 350 to 1.600 kWh, you enter the blue zone.
In the most expensive, red zone, citizens who consume more than 1.600 kWh pay for electricity. At least it will be like this until autumn.
In the report that Serbia recently submitted to the International Monetary Fund (IMF), it was stated that there is a possibility of lowering the consumption threshold for entering the red zone from October 1.
In the report, the Serbian authorities justified this movement of the border with the need to encourage "energy efficiency and potentially increase revenues".
According to that report, the threshold for entering the red zone will drop to 1.200 kWh.
According to an earlier calculation by New Economy, a consumer with a consumption of 1.600 kWh, on the threshold of entering the red zone, currently pays 25.171 per month for electricity. After lowering the threshold for entering the most expensive zone, this consumer's bill will jump to as much as 32.856 dinars - by 30 percent.
This includes entry into the red zone, as well as the announced price increase - which will affect all consumers.
Electricity costs seven percent more
Serbia has committed to increase the price of electricity by at least seven percent from October 1 this year, according to a document published by the IMF. According to the authorities, the reason for the price increase is the "improvement of the financial position of Elektrodistribucija Srbija and the need for investments in energy infrastructure".
And this is not the end either. From the same document, it is learned that another electricity price increase will follow in October 2026. The price increase should be at least inflation plus one percentage point.
What else did Vučić announce?
In his address to people who "belong to the lower middle class" and who are "somewhat poorer", Vučić announced a package of measures from September 1.
He said that together with the Government of Serbia, he will make sure that the prices of the most important products in stores are lower, but also that the interest rates for certain groups of the population, probably the most vulnerable, are lower.
He also announced an initiative to amend the Constitution, and the changes would refer to the impossibility of executors in the enforcement procedure to take away the living space, apartment or house of people who have that only place where they live with their family.
"We also know that from the end of August and September, problems begin with the price of firewood. Problems also begin with the fact that the level of entry into the red for cheap electricity drops. We will see to it that we solve these problems together with you. Wait until August 25, but expect big and good news from your country," concluded Vučić.
