Citizens notice that inflation is rising every day in stores, and a new blow to their pockets is coming due to the increase in the price of electricity. As early as Monday, the RS Energy Regulatory Commission will consider the request of distribution companies to increase the network fee. Citizens fear for their livelihood.
Electricity bills could look different as early as January. Distribution companies in RS requested an increase in the network fee of as much as 40 percent from the Energy Regulatory Commission at the end of July.
“What will certainly not happen is that the price of energy will not increase as of January 1, and whether the network fee will be increased will be determined by the RS regulator and this procedure is underway,” said Petar Đokić, Minister of Energy and Mining of RS (SP).
And while the relevant minister explains the possible increase in the style of “not the neck, but the neck”, for consumers the math is simple: the sum at the bottom of the bill is the only thing that matters. And it, by all accounts, will not be lower.
“We are paying for it together and we are interested in what the final bill will be. It is not known how much the price increase will be. Probably around 20%. We have told them that they need to take care of their structure, their jobs, and how many employees they have,” notes Jovan Vasilić, president of the Consumer Protection Association “Zvono” Bijeljina.
If the increase in the network fee becomes a reality, electricity could be just the first in a series. Economic experts warn that electricity is not only a household expense, but also a key input in almost all production and service industries.
“Prices can be controlled, there are mechanisms – through margins and inspection work. If everyone did their job, maybe these things would not happen. We do not expect anything to decrease, it could only increase. It is common for us that when the price of something goes up, it does not decrease anymore,” emphasizes Vasilić.
An example of this is the price of bakery products. The average price of a loaf of bread in Bosnia and Herzegovina is around 2.20 KM, or even more. The increase in the price of electricity and the growth in wage costs were cited by bakers as the main reason for the increase in the price of bread. However, its decrease did not occur due to the subsequent stabilization of the stock market prices of oil and wheat. Will that be the case this time as well?
“We will see how this will affect other energy production materials and raw materials, margarine, yeast, etc., and then we will make a calculation accordingly and see. If we operate in the red, we will have to adjust the prices,” says Radenko Pelemiš, president of the Bijeljina Region Bakers’ Association.
Manufacturers are announcing new calculations, institutions are holding new meetings, and citizens are already making their own – how to survive on one salary or pension for an entire month. For many, each new price increase means another renunciation of food, medicine or basic needs.
While the RS Energy Regulatory Commission decides on the distributors’ requests, citizens who are already barely making ends meet fear a new blow to their household budgets. In a country where prices are rising faster than incomes, and price increases are becoming the rule rather than the exception, citizens increasingly feel that they are paying for someone else’s losses. Will January’s electricity bills be another proof that survival has become a luxury?
