Gov't delays electricity price rise

Energy and Mining Minister Aleksandar Popovic has announced a postponement in the rise in electricity prices Wednesday. While he confirmed the prices would go up, he could not specify whether or not it would take place before the winter. Gov't delays electricity price rise Appearing as a guest on B92’s news program, the minister last night said that the decision to increase electricity prices had been postponed because of the effect it would have on citizens’ standard of living. He added that the decision to postpone was also due to a sharp rise in inflation during the month of August. "We were weighing up two issues: one was the effect price increases would have on the standard of living and inflation; the other was linked to having the means necessary to invest in the electro-energy sector," Popovic said. "At this moment in time, given the high inflation in August, we decided that even a small price increase could hit people hard, which we don’t need right now," the minister went on to say. He announced that the government would postpone the new tariff system until April 1, 2008. Popovic stresses that investment in new constructions producing electrical energy will be necessary over the coming years, if the country is not to be held hostage to only one form of electricity production. "Since not a single facility has been constructed in Serbia in the last seventeen years, and usage has risen, we are looking to build two thermoelectric power stations, at least one hydroelectric station with the Republic of Srpska." "Moreover, we will also be actively and agressively looking towards alternative sources, such as wind power, solar power, biomass, and mini hydro-electric power stations, and we will be encouraging cogeneration - in other words, producing electrical energy in heating plants," said the minister. Popovic added that the government would be launching a campaign to inform citizens about ways to reduce energy consumption.

Gov't delays electricity price rise

Appearing as a guest on B92’s news program, the minister last night said that the decision to increase electricity prices had been postponed because of the effect it would have on citizens’ standard of living.

He added that the decision to postpone was also due to a sharp rise in inflation during the month of August.

"We were weighing up two issues: one was the effect price increases would have on the standard of living and inflation; the other was linked to having the means necessary to invest in the electro-energy sector," Popović said.

"At this moment in time, given the high inflation in August, we decided that even a small price increase could hit people hard, which we don’t need right now," the minister went on to say.

He announced that the government would postpone the new tariff system until April 1, 2008.

Popović stresses that investment in new constructions producing electrical energy will be necessary over the coming years, if the country is not to be held hostage to only one form of electricity production.

"Since not a single facility has been constructed in Serbia in the last seventeen years, and usage has risen, we are looking to build two thermoelectric power stations, at least one hydroelectric station with the Republic of Srpska."

"Moreover, we will also be actively and agressively looking towards alternative sources, such as wind power, solar power, biomass, and mini hydro-electric power stations, and we will be encouraging cogeneration - in other words, producing electrical energy in heating plants," said the minister.

Popović added that the government would be launching a campaign to inform citizens about ways to reduce energy consumption.