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NEW ELECTRICITY AND USE OF TRANSMISSON SYSTEM CHARGES ...

BELGRADE, July 31, 2008 - The PE "Elektroprivreda Srbije" and "Elektromreža Srbije" submitted proposals for new tariff customer electricity prices and use of transmission system charges to the Agency. Based on a prior analysis of these proposals and submitted data, explanations and corrections the Agency provided its Opinion. Electricity prices for tariff customers increased by 8.4%, within which 8.9% for households. All-in use of transmission system charges also increased. However, this will not concern consumers in Serbia, since PE EMS revenues will significantly increase with the use of cross-border capacities.

The Agency assesses that previous and last electricity price increase makes an important step forward in enabling PE EPS to invest in own development through further cost rationalization, reduction of distribution network losses, collection rate improvement.

The Operation and Development Plan of EPS which was recently completed must be taken into consideration in order to determine the energy sector strategic prospect and its implementation in the following years, including the long-term price policy. This would enhance opportunities to invest in the energy sector and improve the security of supply of electricity consumers.

The Agency also emphasizes the significance of protecting vulnerable energy customers. Ministry of Labour and Social Policy recently appointed an interministerial working group with a view to adopting an Action plan a.s.a.p. which will protect vulnerable customers in a selective manner so that lower prices do not apply to those able to pay the actual energy price. That is also the responsibility of South-East European Countries laid down in the Energy Community Treaty.


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