The latest Official Gazette of Serbia has announced amendments to the methodologies for determining access prices to the electricity transmission system and the natural gas transportation and storage system. Effective immediately, the coefficient within the formula for calculating the regulatory fee has been raised from 1.25% to 1.5% in all three cases.
These changes align with agreements made with the International Monetary Fund (IMF) during the third review of Serbia’s IMF arrangement. The adjustments are part of efforts to address electricity prices for the industrial sector, as stipulated by the IMF.
During the IMF mission’s visit to Serbia in March, it was noted that a new system for setting gas prices for the unregulated sector, including industry, was due to be implemented by May 1. However, this deadline was missed. The Serbian Government responded in a July report, stating that additional time was required to finalize accounting solutions for the new system and to address compensation for Srbijagas related to the energy crisis, particularly concerning high gas storage costs and liquidity issues.
The Government also informed the IMF that since May 1, when state subsidies for gas ended and Srbijagas transitioned to a market-based pricing system, the gas price for the industrial sector had been significantly reduced. The Government indicated that it would review the current 5% margin to determine if an increase is warranted, considering future investment needs.
Work is underway on a new methodology for determining electricity prices for the industry, led by power utility EPS, with a deadline set for the end of August. This methodology is expected to be implemented on November 1, 2024. Similarly, the methodology for calculating gas prices for the unregulated sector was supposed to be effective from August 1, 2024, but according to the Ministry of Mining and Energy’s report, this deadline was not met. Efforts are ongoing to fulfill the agreed obligations.
The Ministry’s report indicates that new methodologies for electricity and gas pricing are being developed in coordination with the IMF. The new electricity pricing methodology for the industry is anticipated to be adopted by September, and updates on gas pricing are also expected.
