Bajatovic admits: Gas prices will rise, once or twice by the end of the year

Nothing tests responsibility better than crisis situations, that's why we decided to tackle the reform of the energy system, Minister of Energy and Mining Dubravka Djedovic said on the second day of the Kopaonik Business Forum.

According to her, along with the projects, work is being done on increasing efficiency and reforming companies. The ultimate goal, she pointed out, is for all companies in the energy sector to be stable and operate profitably, with energy security and safety.

At a panel dedicated to energy, the minister said that it is necessary to work on securing energy supplies, primarily of gas.

"A country moving towards decarbonization must have alternative energy sources. We will work to make our warehouses in Hungary even bigger, so that we have enough gas to prepare for the next season," Djedovic said.

She recalled that until now the state has provided enough energy and that the price of electricity has remained stable despite the growth in other markets.

"We have to change our mindset, to be more energy efficient. 121 local self-governments responded to the measures, thanks to which 80,000 households became energy efficient", she stated.

Can Srbijagas withstand current price?

Dusan Bajatovic, director of Srbijagas, also spoke at the panel to stress that the worst thing in the energy sector is when there is no energy. Asked whether Srbijagas can sustain the current price at which it charges companies, he reminded that it is always a dilemma when considering if it is necessary to implement social policy.

"World economies will not play with a higher price of oil, because that would not be good, so I don't think there will be great volatility", he said and added that he thinks the price on the market will be even lower in the coming period.

He stressed that Europe is paying a high price for the conflict.

"We have several important projects in the coming period - Horgos, TurkStream, as well as certain amounts of gas from Azerbaijan," he said.

"If it wasn't for the government, Srbijagas would not be able to withstand anything when it comes to prices. Gas prices will increase, it's better that I say it," he added.

Bajatovic also noted that this could happen once or twice before the end of the year.

However, he added, the price increase will not be high.

"We have enough capacity to, over the next year, create some better balance of purchased gas, if that needs to be a political goal, too, and I suppose it will also be an economic one, if for no other reason than for the sake of supply security," concluded Bajatovic.

(Telegraf Biznis/V.B.)