Serbia is considering electricity tariff reform that could lead to higher power bills for households later this year. The review is being discussed as part of an IMF-backed programme with the government. The potential impact centres on how the current tariff system is structured for end users.
IMF recommendations call for electricity prices to gradually track the actual costs of production and distribution. In line with those recommendations, the government is expected to prepare a proposal to revise the existing block tariff system by the end of August.
Proposed block tariff revision and household consumption bands
Analysts expect the planned changes could involve adjustments to consumption thresholds used to place households into green, blue, or red tariff zones. If the thresholds are modified, some consumers could move into higher-priced categories at lower electricity use levels than under the current system.
Economist Bogdan Petrović said household electricity prices are likely to rise by at least the rate of inflation by the end of the year. He added that households with higher electricity consumption could face further cost increases if the tariff structure is revised. The timing of any changes would depend on how the proposal progresses through approval.
Options under discussion and expected scope of impact
Energy expert Dragan Vlajisavljević said one option under consideration is lowering the upper limit of the lowest-priced tariff band. Under that approach, households would reach more expensive tariff zones sooner, even if there is no significant change in the base electricity price.
Large industrial consumers are not expected to be affected by the potential changes because they already buy electricity at market-based prices. Any revisions would therefore primarily affect households and small businesses. If approved, a new tariff structure could be announced in September and could take effect as early as October.
