Rising electricity price up to 135% in Bonja Herzegovina and Serbia

Companies in Bosnia and Herzegovina and Serbia, have received notice from their suppliers that the price of electricity will rise to 70-135 percent.

If new prices become a reality, companies need to reduce production, to lay off workers and increase the price of goods and services they sell in the market.

The dizzying rise in electricity prices in recent months has swept across Europe, and the main reasons are CO2 and natural gas emission prices. Current energy prices range from 90 until 200 euro per MWh. In Serbia, the price has increased by almost 80% since the beginning of the year.

Companies in the region felt the first blow in June, but the rise in the price of energy continued. In Bosnia and Herzegovina and Serbia, The main suppliers are state-owned enterprises Elektroprivreda BiH (EPBiH) and the Electric Power Industry of Serbia (EPS).

In an interview with Balkan Green Energy News, in August, when the annual price increase was about 60%, Dejan Stojcevski, chief operating officer of the Serbian energy company SEEPEX, warned that businesses buying electricity on the open market have reason to worry.

"Consumers who have long-term deals for this year and next year will not be affected by the price increase, but those who buy electricity through short-term contracts, and in the second half of the year for the following year, will face problems. Those customers who entered into deals for next year in March or April of this year, not affected because the price at the time was about 60 euro,Said Stojčevski.

The question now is how or if governments will react. In Spain a tax has already been imposed to provide funds to help consumers. Bulgaria has proposed measures for companies, while a similar plan is underway in Romania.

The situation is similar in Serbia. According to the N1 news website, representatives of companies in the town of Kragujevac sent an open letter warning that the energy company Elektroprivreda Srbije (EPS) informed them that since 1 October, their prices would be 135% higher. If this becomes a reality, companies need to reduce production, to lay off employees and even shut down.

For example, EPS informed plastic grille manufacturer Alfa Plast that it would increase the price for the next 12-month contract from 59 EUR per MWh at 123 EUR per MWh, due to concerns in the electricity market.

Serbian President Aleksandar Vucic says one of the owners of a cement plant in Serbia told him that if electricity prices remain so high, they will have to raise the price of cement with 25%, reported Pink television.

Vučić said he discussed the issue with Energy Minister Zoran Mihajlov and Prime Minister Ana Brnabić.

"We will form a large working group at the state level to solve this problem,Vucic added. /monitor