The increase in tariffs for industrial customers is effective March, while for retail customers it will be implemented at a later stage, reports Reuters.
The tariff hike for retail customers will be included in energy bills once the state-run utility EPS gets approval to increase power prices.
Usually, the Serbian government has used energy prices as a welfare policy tool, capping them to defend living standards. It forced EPS to retail energy at below market prices, which led to big losses.
EPS said it was owed RSD120bn ($1.44bn) by customers. The utility also blamed losses of RSD33bn ($396.3m) in 2012 on absorbing the cost of subsidised tariffs
The Serbian government has said it may allow a 10 to 12% increase in power prices in the first quarter of 2013.
