Dačić: No immediate gas, electricity price hikes

Gas prices will not rise in the coming months, it was decided at a meeting with the prime minister yesterday. Electricity bills will go up in April. Dacic: No immediate gas, electricity price hikes At the same time, following a rise in international oil prices, derivatives will be more more expensive starting from midnight. Prime Minister Mirko Cvetkovic, Economy Minister Mladjan Dinkic, Finance Minister Diana Dragutinovic and National Bank Governor Radovan Jelasic will meet today to define the details of a packet of measures for cushioning the impact of the world financial crisis. According to reports, they will define ways of distributing budget guarantees of around EUR 524mn for economic loans, while almost EUR 200mn is expected to be allotted for financing industry, via a Development Fund loan. It was decided at a meeting with the prime minister on Thursday that there would no immediate increase in gas and electricity prices, which was confirmed to B92 by Interior Minister Ivica Dacic. It was agreed that electricity prices could rise by eight percent in April, in line with projected inflation for 2009, regardless of the fact that the Serbian Electricity Company’s vice-president had earlier announced a 20 percent hike. The government also turned down Srbijagas’s calls for an 18 percent gas price increase, though the government said it would help the company offset the losses. “At a time when not only the world, but Serbia, faces the threat of and has already entered an economic crisis, it’s been agreed that the government will offset the losses that certain public companies might incur because of unprofitable import prices with other measures, so that it’s certain that there will be no increase in gas and electricity prices until the regular price corrections in April,” said Dacic. The meeting was attended by President Boris Tadic, the economy and finance ministers, Energy Minister Petar Skundric and Srbijagas CEO Dusan Bajatovic. According to Bajatovic, it was agreed that the government would provide adequate guarantees for the company’s debts, while next week, the government will consider assisting Srbijagas from budget funds. He added that it had been decided at the meeting that it was essential for Srbijagas to buy a further 24 percent stake in Jugorosgas, thus raising its overall holding to 49 percent. Yesterday's meeting (FoNet)

Dačić: No immediate gas, electricity price hikes

At the same time, following a rise in international oil prices, derivatives will be more more expensive starting from midnight. Prime Minister Mirko Cvetković, Economy Minister Mlađan Dinkić, Finance Minister Diana Dragutinović and National Bank Governor Radovan Jelašić will meet today to define the details of a packet of measures for cushioning the impact of the world financial crisis.

According to reports, they will define ways of distributing budget guarantees of around EUR 524mn for economic loans, while almost EUR 200mn is expected to be allotted for financing industry, via a Development Fund loan.

It was decided at a meeting with the prime minister on Thursday that there would no immediate increase in gas and electricity prices, which was confirmed to B92 by Interior Minister Ivica Dačić.

It was agreed that electricity prices could rise by eight percent in April, in line with projected inflation for 2009, regardless of the fact that the Serbian Electricity Company’s vice-president had earlier announced a 20 percent hike.

The government also turned down Srbijagas’s calls for an 18 percent gas price increase, though the government said it would help the company offset the losses.

“At a time when not only the world, but Serbia, faces the threat of and has already entered an economic crisis, it’s been agreed that the government will offset the losses that certain public companies might incur because of unprofitable import prices with other measures, so that it’s certain that there will be no increase in gas and electricity prices until the regular price corrections in April,” said Dačić.

The meeting was attended by President Boris Tadić, the economy and finance ministers, Energy Minister Petar Škundrić and Srbijagas CEO Dušan Bajatović.

According to Bajatović, it was agreed that the government would provide adequate guarantees for the company’s debts, while next week, the government will consider assisting Srbijagas from budget funds.

He added that it had been decided at the meeting that it was essential for Srbijagas to buy a further 24 percent stake in Jugorosgas, thus raising its overall holding to 49 percent.