Not so long ago, the citizens were “honored” with an increase in electricity prices, which caused great dissatisfaction among the citizens, after which several protests were organized. For the next increase in order not to raise the revolt of the citizens who are already upset by the burden placed on their backs, the Government proposed to reduce the VAT on the bills so that the citizens will not at least directly feel the last increase of 12%. However, this “mitigation” has a deadline, after which it will gradually return to the rate of 18% in two years.
According to the announcements, the industrial electricity used by companies will be twice as expensive, and the electricity used by households will be 50% more expensive, and this would be a huge shock for the citizens who are already facing financial consequences as a result of the pandemic, loss of jobs, etc. This increase is also announced by the notifications that traders receive from suppliers.
The authorities acknowledge that there will be an increase in electricity prices after New Year’s Eve, but do not say how much and what is the strategy and whether they have a strategy to prevent such a blow to citizens, because according to all announcements it will not be an increase of only a few percent that can be amortized in ways such as the reduction of VAT, which after returning to the rate of 18% of more expensive electricity will be an additional blow to citizens.
Such an increase in electricity prices would inevitably lead to another rise in product prices, and the food industry warns of this. According to them, product prices could rise by as much as 50% by the end of the year, but the Prime Minister, instead of taking these warnings seriously and finding a prevention strategy in time, called these announcements exaggerated.