With recent amendments to the Law on Energy, Serbia is moving toward a system where consumers will pay for electricity at stock market prices rather than the traditional pricing model, which offered cheaper rates during the night and higher rates during the day. This new “dynamic tariff” system, made possible by the introduction of smart meters, allows electricity prices to fluctuate depending on supply and demand.
Under the new law, customers with smart meters will be able to enter into contracts with their electricity suppliers that reflect the changing market prices. These fluctuations could occur by day or even by hour, encouraging consumers to shift their usage to times when demand is lower, thus helping balance the energy grid.
For consumers without smart meters, the option to switch to dynamic tariffs is still available by submitting a request for a smart meter installation. Smart meters are essential as they record consumption every hour, aligning with the hourly fluctuations in stock market prices.
Meanwhile, consumers who continue to use traditional meters will not be affected by these changes, and the existing two-tier pricing system will remain in place.
In addition to these changes, the Ministry of Mining and Energy has announced an application to help consumers compare electricity offers from different suppliers in Serbia. The goal is to provide transparent, accurate, and up-to-date information to help consumers make informed decisions.
While the new system is designed to align Serbia with international market prices, experts warn that it could lead to higher electricity costs for consumers, especially since Serbia currently imports a portion of its electricity. Despite this, the transition to dynamic tariffs is seen as the first step towards a future where all consumers could potentially be required to pay according to market prices, ensuring the long-term survival of the state-owned electricity company, Elektroprivreda Srbije (EPS).
As of now, over half a million smart meters have been installed in Serbia, and further installations are expected in the coming years. The government encourages EPS to adopt a consumer-friendly approach while also ensuring the stability of the national energy system.
