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Energy Industry

Preparing the public for another price increase

29 August 2023, 07:02 BG
Electricity bill Photo: Time
Electricity bill
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The Minister of Mining and Energy, Dubravka Đedović, says that it is necessary for the price of electricity to rise before the new year, while a few months ago she said that she hoped that would not happen. What has changed?

The hope of the Minister of Mining and Energy, Dubravka Đedović, that the price of electricity in Serbia, which according to her is among the three cheapest in Europe, will not rise, seems to have melted away.

"The increase in the price of electricity is under negotiation, we think it will be necessary for it to be before the new year." This year, we will try to keep the price of electricity rising as little as possible, but a correction is needed for the sake of the long-term stability of our energy system," said Dubravka Đedović. RTS.

She pointed out that as far as energy sources are concerned, Serbia is ready for this winter as well and that it has enough reserves even if something unforeseen were to happen, so that the citizens and the economy could feel safe.

He reminds that the prices of electricity and gas have been at a new low for decades and that this is unsustainable in such a long term.

"Our task is to increase investments, and for that, it is necessary for companies to operate better so that they can finance investment projects," said the minister.

"We will not be fools"

However, three months ago, the President of Serbia, Aleksandar Vučić, said that Serbia will not create an opportunity for other countries to attract more investors, due to more favorable energy prices, and that if the situation with energy products remains as it is, the next increase in electricity prices agreed with the International Monetary Fund will not be necessary. fund. .

"I'm telling you this now, since we won't be fools," Vučić said in response to questions from journalists at the Summit of the European Political Community in Chisinau in early June.

As of November 1, gas will be more expensive. On November 1, gas will be 10 percent more expensive. And from that date, according to the agreement with the IMF, the price of electricity should also increase.

In the report of the International Monetary Fund for Serbia, which was published at the beginning of July, from November 1, the citizens of Serbia expect a new increase in the price of electricity by eight percent and gas by 10 percent, and in May 2024, new price increases with the same percentages will follow.

The report stated that The Government of Serbia agreed that a further increase in electricity and gas prices is necessary.

"The authorities are very aware of the challenges facing the energy sector and are committed to comprehensive reforms to ensure a stable and reliable energy supply, improve energy efficiency and, in the medium and long term, significantly reduce carbon emissions, and agree that to achieve these goals require a further increase in electricity and gas prices."

The situation is being monitored.

The minister stated that the state helped energy companies a lot last year and that she continues to monitor the situation.

"Due to certain obligations that we have assumed in the arrangement with the IMF, we will have to monitor the prices of electricity and gas and stabilize them, so as not to endanger the economy or the citizens, to enable the energy sector and companies to be stable, to implement the much-needed investments in the energy sector, which are estimated at 15 billion euros in the next 10 to 12 years," said Đedović.

"Our goal is to have the lowest or among the lowest electricity and gas prices in the region. We managed to do that last year, when prices rose by over 100 percent, 120 and 130 percent, as in North Macedonia and Romania," added Đedović.

She emphasized that the state saw that prices last year rose as little as possible. She reminded that the authorities worked hard last summer when there was a crisis and that we managed to winter without any difficulties.

BG/RTS

 

Read daily news, analysis, commentary and interviews at www.vreme.com

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the price of electricity Ministry of Mining and Energy Dubravka Đedović profession EPS
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