Ratnovski (IMF): Electricity prices should be adjusted once a year, it would prevent sudden and major adjustments

The International Monetary Fund (IMF) Resident Representative in Serbia, Lev Ratnovski, stated that for the coming period, the IMF recommended adjusting electricity prices once a year, based on inflation trends and costs in the energy sector.

– Such an approach would prevent sudden, major adjustments, create predictability for consumers and enable electricity suppliers to maintain a high-quality, reliable service on which households and the economy depend – said Ratnovski in an interview with the newspaper Politika.

Explaining why, as part of the first review of the arrangement with Serbia, which was recently successfully completed, the IMF team recommended adjusting electricity prices for households by seven percent, that is, why the planned increase in electricity prices is necessary at all, Ratnovski reminded that the price increases in 2022 and 2023 helped with the financial recovery of that sector.

He stated that, for years, electricity prices in Serbia had been kept at an artificially low level, which had led to losses in energy companies and contributed to a serious crisis in 2022. As he pointed out, raising prices is not enough to create a stable, reliable and affordable energy system.

– Energy companies in Serbia - EPS, EDS and EMS - also need to become more efficient, modern and resilient, so that households and businesses can count on a stable supply of electricity at the lowest possible price in the long term – stated Ratnovski.

Međunarodni monetarni fond-MMF Beograd

Elektroprivreda Srbije ad Beograd

Elektrodistribucija Srbije d.o.o. Beograd

EMS ad Beograd

International Monetary Fund

IMF

Elektroprivreda Srbije ad Beograd

Elektrodistribucija Srbije ad Beograd

Elektromreža Srbije ad Beograd

Lev Ratnovski

adjusting electricity prices