If your electricity bill seems unpredictable from month to month, this may be only the beginning of further changes. Warnings from the International Monetary Fund (IMF) and government plans suggest that the coming period could bring further adjustments to electricity prices, as well as possible changes to the thresholds within the block tariff system that determine how much households pay for electricity, from the cheapest to the most expensive consumption bracket.
The International Monetary Fund has assessed that Serbia is largely meeting the agreed reform and quantitative targets under its current economic programme, despite external challenges. According to the IMF, this has helped preserve the stability of reform implementation and supported projected GDP growth of around 2.8 per cent.
However, alongside its positive assessment, the IMF’s latest report also includes a number of recommendations, particularly relating to the energy sector, which it identifies as one of the key issues affecting the country’s economic stability.
According to these recommendations, Serbia should accelerate reforms in the energy sector, especially at two power companies – Elektroprivreda Srbije (EPS) and Elektrodistribucija Srbije (EDS) – with a focus on restructuring, reducing operating costs and improving business efficiency.
One of the more significant issues concerns the electricity pricing system, specifically block tariffs and possible adjustments to electricity prices. The IMF is calling for a gradual alignment of regulated electricity prices with the actual costs of generation and distribution, as well as regular indexation in line with inflation.
In practice, this could mean changes to the consumption thresholds within the block tariff system, as well as potential price adjustments for households in the coming period.
Under the current model, households are divided into three tariff zones: green, blue and red.
The green zone covers the lowest level of consumption and carries the lowest price, the blue zone applies to medium consumption levels, while the red zone covers high consumption and is charged at a significantly higher rate.
The most recent change to the system took place last year, when the threshold for entering the more expensive tariff bracket was reduced from 1,600 to 1,200 kilowatt-hours per month.
For its part, the Serbian Government has accepted the IMF’s recommendations, stating that the objective of its energy policy is to ensure system stability, fiscal sustainability and more efficient management of state-owned enterprises, while protecting energy-vulnerable households.
According to plans submitted to the IMF, electricity prices will continue to be adjusted regularly in line with inflation, while the existing block tariff structure will be reviewed by the end of next year. The government has also announced the possibility of further changes to the support system for vulnerable consumers, which has already been expanded to cover almost 200,000 beneficiaries.
The IMF particularly emphasises that electricity prices should reflect real costs, with clearly targeted social assistance for the most vulnerable groups rather than universally low tariffs for all consumers.
As part of the broader reform package, the restructuring of EPS is expected to accelerate, including operational rationalisation and workforce optimisation over the coming years. At the same time, plans are being made to prepare and adopt a restructuring programme for EDS with the assistance of external consultants.
While the Government has outlined deadlines and plans, questions remain regarding the pace at which these reforms will be implemented in practice and their impact on households and electricity prices in the period ahead.
(Kamatica, 25.06.2026)