Serbian Econ Min Says Hike in Electricity Prices Needed

Serbian economy minister and acting finance minister Dusan Vujovic said on Monday that a hike in electricity prices is needed to solve some problems dogging state-owned power utility EPS.

There is no point to savings in electricity consumption on the backdrop of prices that are 30% lower than the cheapest rates in the region. For the savings to be meaningful, the price of electricity has to go up, Vujovic was quoted as saying on the website of the finance ministry.

If Serbia wishes to attract foreign investors in the field of electricity generation and export, the price of electricity has to make economic sense, Vujovic added.

However, some problems at EPS, like grid losses of 18% and a bill collection rate of 84%, cannot be resolved through a price hike, the official noted.

Source: SeeNews