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Serbia to raise residential electricity prices by 7% under IMF agreement

Serbian households will face a minimum 7% electricity price increase by the end of September 2025, in line with commitments under the country’s IMF-supported economic program. Originally planned for October, the adjustment will now include a tightening of the high-tariff “red zone,” reducing the monthly threshold from 1,600 kWh to 1,200 kWh to encourage more efficient energy use.

Another increase is scheduled by October 1, 2026, and must outpace inflation by at least 1%. Meanwhile, from October 2026, transmission and distribution operators (EMS and EDS) will receive a higher compensation fee from EPS—rising from €70 to €80 per MWh—to cover network losses.

A comprehensive tariff review of state-owned energy companies is expected by January 2027, allowing for additional adjustments if needed. To mitigate the impact on the most vulnerable, the government will implement block-tariff pricing for minimal usage and provide direct subsidies to approximately 75,000 low-income households.

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