Serbian households could face higher electricity bills later this year as the government discusses changes to the current tariff system with the International Monetary Fund (IMF). The reform is being considered alongside an IMF recommendation that electricity prices should gradually track the actual costs of production and distribution.
IMF guidance and proposed block tariff revision
Under the IMF approach, electricity pricing would move closer to production and distribution costs over time. In line with these recommendations, the government is expected to prepare a proposal to revise the existing block tariff system by the end of August.
Analysts expect the planned changes to focus on consumption thresholds that determine whether households fall into the green, blue, or red tariff zones. If those thresholds are adjusted, some consumers could shift into higher-priced categories at lower electricity use levels than under the current structure.
Potential household bill impacts and tariff band options
Economist Bogdan Petrović said household electricity prices are likely to rise at least in line with inflation by the end of the year. He added that households with higher electricity usage could see further cost increases if the tariff structure is revised.
Energy expert Dragan Vlajisavljević noted that one option under consideration involves reducing the upper limit of the lowest-priced tariff band. In that case, households would enter more expensive tariff zones sooner, even if there is no significant change in the base electricity price.
Expected effects on industry and timeline for implementation
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 target households and small businesses.
If approved, the new tariff structure could be announced in September, with implementation possible as early as October. The timing would follow the government’s preparation of a proposal for revising the block tariff system by the end of August.
