Knowledge Note

"Sustainable Energy Subsidy Reform in Serbia."

Electricity is the largest component of household energy expenditures in Serbia. The power sector in Serbia faced increasing financial difficulty in 2014. High technical and commercial losses along with below-cost provision of electricity to consumers resulted in a revenue shortfall for the state power utility and became a huge burden on the government. Energy Sector Management Assistance Program (ESMAP) provided grants to supported World Bank cross sectoral analyses, which fed into advice to the Serbian government on designing electricity tariff reforms paying attention to energy affordability and protecting vulnerable households in the face of price increases.