The International Monetary Fund (IMF) resident representative in Serbia, Lev Ratnovski, stated that electricity prices should be adjusted annually based on inflation and underlying energy-sector costs. Implementing an annual pricing formula would help avoid sudden, large increases, provide consumers with greater predictability, and support suppliers in maintaining reliable, high-quality service for households and businesses.
During the first review of Serbia’s IMF program, which concluded successfully, the Fund recommended a 7 percent increase in household electricity prices. This adjustment is part of broader efforts to stabilize the sector following price hikes in 2022 and 2023 that helped restore financial health. Ratnovski noted that years of artificially low regulated prices led to losses for energy companies and contributed to the sector-wide crisis in 2022.
He added that pricing reform alone is not enough. State-owned energy companies EPS, EDS, and EMS also need to enhance efficiency, modernize operations, and strengthen resilience to ensure a stable electricity supply at the lowest feasible long-term cost for Serbia.
