As of November 1, we expect to see another increase in the price of electricity by 8 percent and gas by 10 percent, followed by a new price increase in May 2024, the International Monetary Fund said in its new report on Serbia.
Since May 1 this year, electricity price in Serbia has gone up by 8 percent and gas by 10 percent. Despite announcements that “if the situation with energy sources remains the same, there will be no increase in electricity prices” (Vučić, June 1, 2023), according to the IMF report, this increase will happen in November this year and May next year – as originally planned.
“A further increase in electricity and gas prices is needed – from November 2023 and during 2024 – in order to eliminate all budget subsidies to state-owned energy companies until the end of the arrangement with the IMF and to finance much-needed investment spending in the coming years,” the IMF points out in the report.
According to the head of the IMF mission to Serbia, Donald McGettigan, energy prices in Serbia need to go up as the IMF considers energy prices low and that the energy sector needs a reform. Under an arrangement Serbia struck with the IMF that is worth €2.4 billion, Serbia must raise its electricity and gas prices twice more, following the January increase.
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